UPST Stock Lost About 38% in 2 Weeks; Seller Dominance is Ending

• The AI-lending platform may benefit from the growing interest in tech
• UPST stock was up by 4.72% since its previous close

Artificial Intelligence (AI) is the talk of the town nowadays. Experts believe that AI will automate a large variety of tasks, making lives easier. Google (NASDAQ: GOOGL) and Microsoft (NASDAQ: MSFT) have once again sparked fears of the search engine wars. However, this time, Microsoft might have the upper hand. Upstart Holdings (NASDAQ: UPST), an AI-based lending company, has witnessed a steep downfall in the market since the beginning of February. Upstart Holdings’s following earnings report is due on February 14th.

Upstart partners with banks and credit unions to offer affordable credit. It was founded in 2012 by ex-Google employees. As per Upstart, the banks that partner with Upstart can use its AI platform to increase approval rates across categories like age, race, and gender. In its February 2 press release, Upstart announced its collaboration with Kansas-based nbkc bank, a $1.1 billion-asset community bank.’ 

UPST stock fell by around 38% this week. Recently, Nasdaq put the company on the security threshold list following unusual trading activities. Bloomberg reported that Upstart Holdings laid off 20% of its workforce. Tech companies have already laid off around 66,000 workers over the past one and a half years. Google cut 12,000 jobs last month, while Meta cut its workforce last year.

UPST stock price analysis

An elliott impulse wave is visible between November and December 2022, during which the price is almost half its value. It started on a path to recovery in January 2023, gaining nearly 70% in the month. At press time, UPST stock was trading at around $16.31, down by 1.33% since the previous close.

The stock has lost almost 38% since the beginning of February 2023. RSI suggests an oversold position. Meanwhile, the balance of power shows decreasing seller dominance. UPST stock is currently testing a support level of $16 and a resistance close to $18. A breakout may lead the share price to $20.

The company financials show that the revenue has decreased by 29.92% year-on-year basis and net income by 293.12%. Their Q4 2022 earnings report shows better than expected revenue of $146.92 Million, a surprise of almost 10%.

The year 2023 began with optimism considering several stocks in different industries, including EV, tech, and more, saw an increase in their shares. However, many of the rising stocks took a turn in February 2023. Recently, Google launched its AI chatbot, Bard, in response to ChatGPT, but it was criticized sharply after it gave inaccurate facts.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.