{"id":135054,"date":"2020-12-16T22:55:00","date_gmt":"2020-12-16T19:55:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/upstart-stock-soars-after-ipo\/"},"modified":"2020-12-16T22:55:00","modified_gmt":"2020-12-16T19:55:00","slug":"upstart-stock-soars-after-ipo","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/upstart-stock-soars-after-ipo\/","title":{"rendered":"#\n  Upstart stock soars after IPO"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a33e6eb22382\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a33e6eb22382\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/upstart-stock-soars-after-ipo\/#Lending_company_uses_artificial_intelligence_to_determine_loan_eligibility\" >Lending company uses artificial intelligence to determine loan eligibility<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/upstart-stock-soars-after-ipo\/#Emily_Bary\" >Emily Bary<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Upstart stock soars after IPO<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Lending_company_uses_artificial_intelligence_to_determine_loan_eligibility\"><\/span>\n  Lending company uses artificial intelligence to determine loan eligibility<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000102386\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Upstart Holdings Inc. shares shot up more than 30% in afternoon trading Wednesday as the lending company made its public debut. <\/p>\n<p> The stock\u2019s first trade on the Nasdaq was for $26.00 at 12:44 p.m. ET. Upstart<br \/>\n        UPST,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/223096209\/composite\" class=\"positive\">+35.95%<\/bg-quote><br \/>\n       had priced its offering late Tuesday at $20 a share, which came at the low end of the company\u2019s expected range. The company raked in $180 million through the offering after it sold 9 million shares. <\/p>\n<div class=\"paywall\">\n       Other selling shareholders sold about 3 million additional shares.  <\/p>\n<p>The company said in its prospectus that when it comes to traditional lending decisions, \u201cmost banks use simple, rules-based systems that consider only a limited number of variables,\u201d meaning that \u201cmillions of creditworthy individuals are left out of the system, and millions more pay too much to borrow money.\u201d Upstart uses artificial intelligence to make lending decisions and argues that its model, which considers more than 1,600 data points, enables greater loan access at lower rates without adding risk. <\/p>\n<p>Chief Executive Dave Girouard told MarketWatch that those involved in the lending industry have been searching for \u201ca fountain of youth that can change the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a> in terms of accuracy.\u201d He believes that artificial intelligence and cloud computing can lead to a \u201ctransformation across the banking and financial services industries for decades to come.\u201d <\/p>\n<p>Upstart partners with banks by connecting them with customers interested in taking out loans, and then the company collects referral fees from the banks it works with. <\/p>\n<p>Because Upstart doesn\u2019t do the lending itself, the company doesn\u2019t have \u201cthe im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>te risk of millions of loans on our books,\u201d Girouard said, one reason he said the company\u2019s business is built to weather periods of economic downturns. <\/p>\n<p>He added that the COVID-19 crisis \u201chad no material impact on the returns our bank partners saw on their loans,\u201d which suggests to him that banks using AI lending \u201ccan rest comfortably knowing that [the AI] will allow you to lend responsibly because it will respond and react and do the right things faster\u201d than humans could. <\/p>\n<p>Upstart\u2019s model looks at factors like educational and employment history among its data points. Girouard said \u201cwe\u2019d hope if the opportunity is as big as we think it can be that it will draw competitors,\u201d but that Upstart has an advantage because it\u2019s been training its model for years, which has allowed the AI to get smarter.<\/p>\n<p>Upstart generated $146.7 million in revenue during the first nine months of 2020, up from $101.6 million in the same period a year earlier. The company recorded net income of $5.0 million during first nine months of the year, after it posted a loss of $6.5 million in the comparable period a year prior. <\/p>\n<p>The offering comes as the Renaissance IPO ETF<br \/>\n        IPO,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/207665280\/composite\" class=\"negative\">-0.05%<\/bg-quote><br \/>\n       has gained 110% on the year and as the S&amp;P 500<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"positive\">+0.30%<\/bg-quote><br \/>\n       has risen 15%.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Emily Bary\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Emily_Bary\"><\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/marketwatch.com\/author\/emily-bary?mod=MW_author_byline\">Emily Bary<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D18FF249BA91%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Upstart stock soars after IPO &#8221; Lending company uses artificial intelligence to determine loan eligibility Upstart Holdings Inc. shares shot up more than 30% in afternoon trading Wednesday as the lending company made its public debut. The stock\u2019s first trade on the Nasdaq was for $26.00 at 12:44 p.m. ET. Upstart UPST, +35.95% had&#8230;<\/p>\n","protected":false},"author":1,"featured_media":135055,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-135054","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/135054","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=135054"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/135054\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/135055"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=135054"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=135054"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=135054"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}