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We recently published an article titled Why These 10 Firms Nosedived Today. In this article, we are going to take a look at where Upstart Holdings, Inc. (NASDAQ:UPST) stands against the other stocks.
The stock market bounced back from the previous day’s losses, with all major indices finishing higher as investors cheered the central bank's decision to keep interest rates unchanged.
On Wednesday afternoon, the Federal Reserve kept rates steady at a range of 4.25 percent to 4.5 percent, saying that it was not in a hurry to cut rates and could still “wait and see” the impacts of President Donald Trump’s tariff policies.
The Dow Jones rallied by 0.70 percent, the S&P 500 increased by 0.43 percent, and the Nasdaq grew by 0.27 percent.
Beyond the major indices, bucked a broader market optimism as investors sold off on a series of disappointing news.
To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume.
A close-up of a businesswoman using a laptop, being illuminated by the AI-enabled cloud interface sponsored by the company.
Upstart Holdings, Inc. (NASDAQ:UPST)
Upstart Holdings, Inc. (NASDAQ:UPST) declined by 9.65 percent on Wednesday to end at $46.44 apiece as investors brushed off its strong earnings performance during the quarter after a number of investment companies reduced their price targets for its stock.
On Wednesday, Needham & Company lowered its price target for Upstart Holdings, Inc.’s (NASDAQ:UPST) stock by a whopping 35 percent to $70 from $108 previously, while maintaining its “buy” recommendation.
The new price also marked a 50-percent upside from the company’s closing price on Wednesday.
Additionally, the company received a lower price target of $69 from Piper Sandler, or 34 percent lower than its previous price target of $105. The investment firm, however, maintained its “overweight” rating on the stock.
According to Piper Sandler, the overweight rating reflected its continued confidence in Upstart Holdings, Inc.’s (NASDAQ:UPST) despite the lower price target.
During the first quarter of the year, Upstart Holdings, Inc.’s (NASDAQ:UPST) narrowed its net loss by 96 percent to $2.4 million from $64.6 million in the same period last year.
Revenues expanded by 67.7 percent to $213 million from $127 million year-on-year.
Overall UPST ranks 6th on our list of Wednesday's worst performers. While we acknowledge the potential of UPST as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than UPST but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.