Why Upstart Stock Dropped 22% in December
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Shares of Upstart (NASDAQ: UPST) dropped 21.9% in December, according to data provided by S&P Global Market Intelligence. And as of this writing, it's down another 7% year to date in 2025. Interestingly enough, the drop seems to be correlated with changes to the federal funds rate on Dec. 18.For those unaware, Upstart's business is sensitive to changes in interest rates. Its platform seeks to increase approvals for borrowers while simultaneously lowering risk to lenders. But its revenue has been cut in half in recent years because lenders weren't as willing to fund Upstart's loans -- there were high-rate opportunities elsewhere.However, Upstart is now back to growth. Through the first three quarters of 2024, its total revenue was up 12% from the comparable period of 2023. The federal funds rate was also down 16% from its peak in 2024, thawing the icy stance from Upstart's lending partners. This is why Upstart stock soared 51% in 2024.Continue readingWeiter zum vollständigen Artikel bei MotleyFool
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