Why Upstart Stock Jumped 23% in April
Key Points
Fintech stocks gained broadly as the top banks reaffirmed the opportunity in the private credit market.
The market shifted back to risk-on stocks as tensions cooled in Iran.
Upstart looks cheap for its growth potential.
- 10 stocks we like better than Upstart ›
Shares of Upstart (NASDAQ: UPST), the AI-based loan origination platform, were moving higher last month as the company benefited from the broader risk-on positioning as tensions cooled in Iran, and stocks soared again.
There was not much company-specific news out on Upstart, but the company did launch a new line of credit product called "Cash Line" that was well-received by investors.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
By the end of the month, the stock had finished up 23% according to data from S&P Global Market Intelligence.
As you can see from the chart below, the stock tracked with the S&P 500 for the first half of the month, and then soared on the Cash Line announcement and other news.
UPST data by YCharts
What's happening with Upstart
Upstart was one of several fintech stocks to soar last month after fears about a private credit bubble cooled off, lifting stocks like Upstart in the middle of the month.
Morgan Stanley said in its earnings report out on April 15 that risks in private credit were "significant but not systemic," which was seen as good news for stocks like Upstart, which rely on private credit investors buying its loans.
The stock jumped 13% on April 15 on a combination of factors, including the broad market soaring on favorable news from the Middle East, the comments from Morgan Stanley on private credit, and Upstart's launch of Cash Line.
Cash Line is the latest innovation from Upstart and offers borrowers a credit limit that only goes up, instant deposits, and a $200 minimum once approved.
The stock got another bump on April 22 when it announced a $1.2 billion forward-flow agreement with Centerbridge, which agreed to purchase up to that much in consumer loans originated on the Upstart platform. The following week, it made a similar $1.25 billion agreement with Fortress.
Image source: Getty Images.
What's next for Upstart
Upstart will report earnings on Tuesday, and the stock could be poised for a big move, as it has struggled of late even as the business has been executing effectively.
Analysts are expecting revenue to jump 42% to $303.4 million, and for adjusted earnings per share to increase from $0.30 to $0.43. Considering the stock now has a very reasonable price-to-earnings ratio, there's a lot of upside potential for the stock if it can reassure investors of its growth potential.
Should you buy stock in Upstart right now?
Before you buy stock in Upstart, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Upstart wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $496,473!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,216,605!*
Now, it’s worth noting Stock Advisor’s total average return is 968% — a market-crushing outperformance compared to 202% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 4, 2026.
Jeremy Bowman has positions in Upstart. The Motley Fool has positions in and recommends Upstart. The Motley Fool has a disclosure policy.
Recommended Articles
