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Why is Upstart’s Stock Price Soaring?

September 8. 2021. 5 mins read

Competent investors act with conviction. They don’t second guess their decisions when a stock price starts falling. Well actually, everyone does, but competent investors recognize the fear for what it is and manage that emotion. A subscriber recently said, “I like that you don’t sell beaten down stocks.” If our thesis hasn’t changed, why would we? It’s the perfect opportunity to buy some shares on the cheap.

The same can be said when you don’t buy a stock and it soars. That’s when FOMO kicks in for most newbie investors. They capitulate and decide to climb on board the money train – choo choo! Many eventually end up holding the bag. If you decide not to invest in a stock, then it climbs +790%, that doesn’t mean you made the wrong decision. If the reasons for avoiding the stock haven’t changed, then your decision shouldn’t either. One good example is a fintech stock called Upstart (UPST).

Why is Upstart’s Stock Price Soaring?

We last looked at Upstart in a December 2020 piece titled Upstart Stock – A Play on AI-Powered Consumer Lending. In that piece, we talked about why we weren’t going to invest in the company:

  • Too much reliance on the American consumer
  • Demand for unsecured loans can dry up quicker than secured loans
  • Potent

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