UPST: What Does The Company Do?
One of the funnier moments on CNBC happened six months ago when legendary trader Mark Minervini recommended artificial intelligence lending platform Upstart (UPST). When asked what the company does either the connection broke down or Minervini froze. Minervini said it was the former and I have no reason to doubt him but it’s still funny.
At any rate, UPST reported 1Q22 earnings Monday afternoon and the reaction is not pretty. UPST was a $400 stock when Minervini was recommending it on CNBC and it’s currently -40% in the after hours and trading in the $40s. Artificial intelligence lending platform sounds really cool but it’s so 2021.
UPST guided 2022 revenue to $1.25 billion and Adjusted EBITDA Margin to 15% which works out to $187.5 million. With a current market cap around $4.3 billion based on the after hours price, I’d definitely cover a short position though I’m not going long as I don’t have a clue what the company does.