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Why Upstart Stock Lost 29% in 2025

The Motley Fool Logo The Motley Fool By Jeremy Bowman
Why Upstart Stock Lost 29% in 2025

Upstart Holdings stock declined 29% in 2025 despite strong business fundamentals, including 79% revenue growth and a return to profitability through the first three quarters. The decline was driven by market concerns about rising credit risk, a weakening labor market, and increased auto loan delinquencies. While the company's AI models have held up and the business is stronger than in 2022, credit market fears overshadowed positive earnings results.

Insights
UPST   negative

Stock fell 29% in 2025 due to market concerns about rising credit risk and weakening labor market conditions, despite strong underlying business growth (79% revenue increase) and return to profitability. The disconnect between fundamentals and stock performance reflects investor fears about future credit deterioration.