"Upstart Holdings ( NASDAQ: UPST) has dropped 19.77% over the past week, falling from $38.24 to $30.68 as of February 13. That's a sharp decline for a stock that Wall Street still sees climbing to $51.67, implying 68% upside from current levels. The AI-powered lending platform reported fourth-quarter 2025 results on February 10, beating revenue estimates but triggering a selloff that has now erased 33.95% of its value over the past month."
"But investors fixated on two announcements that came with the earnings release. First, co-founder Paul Gu will replace the current CEO on May 1, 2026. Second, the company is shifting from quarterly guidance to annual targets only, citing a desire to focus on long-term execution rather than short-term forecasting. According to TIKR.com, the stock "plummeted 14%" specifically due to the leadership change and guidance shift."
Upstart reported $296.09 million in Q4 revenue, slightly above consensus, and full-year revenue rose 64% to over $1 billion with loan originations up 86%. The company returned to profitability with $53.6 million in net income for 2025 after a $129 million loss in 2024. A co-founder will replace the current CEO on May 1, 2026, and the company moved from quarterly guidance to annual targets only. Management warned of weaker contribution margins in 2026 as secured products and a shift toward prime borrowers compress near-term margins. The stock fell sharply, hitting a 52-week low amid analyst target cuts and downgrades.
Read at 24/7 Wall St.
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