10 Stocks with Potential to Rise 1000 Percent

3. Upstart Holdings, Inc. (NASDAQ:UPST)

Number of Hedge Fund Holders: 39

Upstart Holdings, Inc. (NASDAQ:UPST) is a financial technology company that provides an AI-powered lending platform designed to improve access to affordable credit while reducing risk for lenders. Its platform uses machine learning models to assess borrower risk beyond traditional credit scores, enabling more accurate underwriting. UPST partners with banks and credit unions, which use its technology to originate personal, auto, and small-dollar loans. The company generates revenue through referral fees, platform usage fees, and loan servicing.

Upstart Holdings, Inc. (NASDAQ:UPST) demonstrated strong performance in Q4 2024, with origination volume growing 33% and revenue growing 35% sequentially, translating to 68% growth in originations and 56% growth in revenue YoY. The company saw remarkable growth across its product categories, with both Auto and HELOC growing approximately 60% sequentially and the small dollar relief product growing 115% QoQ. Financial results for Q4 included revenue from fees of $199 million, up 30% year-over-year and 19% sequentially, while net interest income reached almost $20 million.

Upstart Holdings, Inc. (NASDAQ:UPST)’s funding position strengthened significantly, with increased commitments from private credit partners and a growing roster of lending partners, including a $1.3 billion increase in commitments and a new $150 million personal loan warehouse facility. Looking ahead to 2025, management has set clear priorities: enhancing AI leadership, preparing funding supply for rapid growth, returning to GAAP net income profitability in the second half of the year, and making significant progress toward offering the best rates and processes across all products. For the full year 2025, the company expects total revenues of approximately $1 billion, with an Adjusted EBITDA margin of approximately 18%, and anticipates achieving at least breakeven GAAP Net Income for the year. With 39 hedge funds owning the stock, UPST is one of the stocks that will go up 1000 percent.