You Won't Believe How Much a $1,000 Investment in Upstart Stock 5 Years Ago Is Worth Today
Key Points
Investors in this fintech stock would have been better off holding cash over the past five years.
Upstart's financial results have been extremely cyclical, which makes this a difficult business to own.
- 10 stocks we like better than Upstart ›
It's hard to deny just how forward-thinking Upstart (NASDAQ: UPST) is. The innovative enterprise developed a completely new credit-assessment tool that leverages artificial intelligence to give more borrowers access to loans. It's a true pioneer within the financial services industry.
Long-term investors haven't reaped the rewards from this disruptive business model, however. You won't believe how much a $1,000 investment in this fintech stock five years ago is worth today.
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Since late March 2021, Upstart's stock price has tanked 79% (as of March 20). If you had been unfortunate enough to have purchased $1,000 worth of shares back then, you'd have just $214 today. This has been an extremely disappointing investment opportunity with heightened levels of volatility.
Upstart benefited greatly from the ultra-low interest rate environment during the depths of the COVID-19 pandemic, which boosted growth. But the company struggled when rates increased. In 2025, though, its top line was up 64% year over year, as things stabilized.
The challenge with owning Upstart is that its financial performance is highly cyclical, as there is a strong dependence on favorable macro conditions. The business has a choppy history. Besides inconsistent revenue growth, getting to durable profitability is still very much a huge question mark.
Even with the stock trading at what appears to be a cheap valuation, Upstart is a high-risk bet.
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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Upstart. The Motley Fool has a disclosure policy.
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