Upstart stock rebounds as AI loan platform drives growth and funding boost

Upstart's stock has rebounded to around $78 after dropping 97% from its peak of $401 in 2021 due to rising interest rates that reduced loan demand. The company has improved its AI loan origination platform, allowing it to automate 91% of loan decisions. In the third quarter of 2024, Upstart originated 186,786 unsecured personal loans, a 65% increase from the previous year. The company also secured a $2 billion funding deal with Blue Owl to support growing demand, contributing to a 20% revenue increase to $162 million. Analysts predict Upstart's revenue will reach $587.5 million in 2024, a 14% rise from 2023, with further growth expected in 2025. The company has significant potential in a $3 trillion market for various loan types, having only tapped a small portion of this opportunity so far.