Being a "'platform" sounds well and good, but it's hard for fintechs involved in lending to escape the economics of banks.
Upstart Holdings (NASDAQ: UPST) is an explosive financial technology company that uses artificial intelligence (AI) to originate loans for banks. After reaching an all-time high of $401 per share in 2021, Upstart stock has progressively fallen, at one point by as much as 93% since. Investors took particular issue with the company's recent Q1 2022 earnings report, sending the stock down more than 50% on the day results were released.
Upstart earlier this year launched a $400 million share repurchase program but didn't buy back any stock in the first quarter of 2022.