Down 30% in 2026, Is Upstart an AI Stock to Buy Right Now? | UPST Stock Analysis

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The video analyzes Upstart (UPST), a company using artificial intelligence for lending decisions. Despite a period of rapid revenue growth and profitability during the pandemic, the company experienced a significant decline in revenue and operating margins starting in late 2022 due to rising interest rates and a slowdown in the economy. This led to an exodus of lenders from the platform and a sharp drop in the company's financial performance. However, recent data indicates a recovery in revenue, with the company's trailing twelve months (TTM) revenue reaching $1.246 billion and showing a significant increase from its lowest point. The operating margin has also shown improvement, recovering from negative territory to 3.99%. The analysis suggests that due to recent market conditions and a potential easing of inflation, the Federal Reserve might consider lowering interest rates, which could further boost Upstart's performance by reducing borrowing costs and increasing consumer spending power. The stock is currently trading at a forward P/E ratio of 8.98, which is considered historically low and presents a potential buying opportunity for investors with a high risk tolerance, as the calculated intrinsic value per share is $78.90, implying significant upside potential from the current market price of $30.58.

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