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Upstart (UPST) is set to report its Q4 earnings, with analysts expecting a 32% year-on-year revenue growth to $289 million and adjusted earnings of $0.46 per share. The company previously missed revenue expectations by 1.3% last quarter. Despite a challenging environment for vertical software stocks, Upstart has generally exceeded revenue estimates. The average analyst price target for Upstart is $56.64, while its current share price is $38.32, reflecting a 15.2% decline over the past month.
A sell-off in the stock market occurred as fears of AI disruption led to declines in several stocks, including Asure Software (-5.7%), Paycom (-6.1%), Doximity (-6.9%), SoundHound AI (-5.6%), and Upstart (-5.1%). The S&P 500 Information Technology Sector dropped nearly 3%. Doximity's shares are volatile, down 19.7% year-to-date, trading at $34.76, significantly below its 52-week high. Concerns over semiconductor supply and political investigations added to market anxiety, prompting a shift from growth to defensive investments.
Citi analysts suggest that fintech stocks may benefit from President Trump's populism initiatives, particularly in a changing regulatory environment. Companies like SoFi, Block, Affirm, and Klarna could gain from increased consumer spending power and regulatory shifts favoring transparency in financial services. Additionally, cryptocurrency firms such as Coinbase and lending platforms like Upstart may also see advantages from potential policy changes. Analysts highlight that these fintech companies are positioned to capitalize on new opportunities in the market.
Upstart looks like a good candidate to be a multi-bagging stock.
