If You'd Invested $1,000 in Upstart (UPST) 3 Years Ago, Here's How Much You'd Have Today

Key Points

• Upstart's stock has soared in recent years, as it returns to growth and minimizes net losses.

• Shares trade at a steep price-to-sales ratio.

• The company’s lack of consistent profitability makes it a risky bet.

• 10 stocks we like better than Upstart ›

Upstart (NASDAQ: UPST) is an innovator in the financial services industry. The business has developed an artificial intelligence-powered lending platform that can better assess a potential borrower's creditworthiness. Management says this technology can increase approval rates while keeping default risk in check. It's a winning solution.

Shares have certainly been volatile. However, Upstart is starting to win over investors. If you invested $1,000 in this fintech stock exactly three years ago, here's how much money you'd have.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Image source: Getty Images.

Taking investors on a wild ride

Upstart has made for a wildly successful investment in the past three years. Since July 31, 2022, the stock has skyrocketed 250%. This monster gain would've turned a $1,000 investment into $3,500 today. Any investor would be pleased with this result.

Despite such an impressive rise, the stock currently trades 78% below its peak. That record was established in October 2021, when Upstart was putting up tremendous growth.

To be clear, the company isn't firing on all cylinders like it was in 2021. However, the financial results have shown meaningful improvements, which explains the stock's performance in the past three years.

During the first quarter of 2025 (ended March 31), Upstart's transaction volume jumped 102% year over year, supporting a notable revenue gain of 67%. And the leadership team expects the business to be GAAP profitable for the full year.

High expectations

Upstart shares don't look cheap. They currently trade at a price-to-sales ratio of 10.9, highlighting the market's growing optimism toward the business. A valid argument can be made that this valuation adds significant downside risk should the company disappoint Wall Street when it reports earnings.

As a younger business that has yet to generate consistent profits, Upstart remains a risky investment, in my opinion.

Should you invest $1,000 in Upstart right now?

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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.