AI-based stock Upstart (UPST) surged a staggering 31% on Wednesday becoming the top-performing asset of the day. UPST is not just the top-performing asset of the day, its historical price chart paints an extremely bullish picture. It has surged nearly 170% in a year and rose 46% year-to-date. Investors who took an entry position last year and early 2025 are all under massive profits. It is among the rarest of stocks that kept on giving even when the market was on a slippery slope.
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Why Did Upstart Stock Rise 41%?
Upstart Holdings Inc’s latest earnings call beat all investor’s expectations after reporting $219 million in revenue in Q4 of 2024. It also reported a solid 56% year-on-year growth signifying that the AI space has a lot to offer. Its EBITDA margin also surged 17.7% and boosted its prospects in the markets. The positive earnings call sent Upstart stock soaring to new highs making it touch the $88 mark.
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Should You Invest In It?
While Upstart’s annual revenues look impressive, the stock has been volatile for close to five years. The returns have been steady but historical spikes cannot promise generating better results in the future. In 2021, UPST spiked +271% but in 2022 dipped -91%. However, it surged +209% in 2023 and +51% in 2024. The spike and fall were a roller coaster ride for investors while the majority of them made profits.
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Nonetheless, there is no guarantee that Upstart stock has minimal chances of repeating its 2022 fall. Investors are only pumping money into UPST for the short term and rarely are sticking to the long term. A pullback in price from here could prove costly as traders are only in for quick money. If the stock begins to dip, investors will most likely stay out of it and take entry positions as a downturn does not guarantee it could surge in value again.