Why Upstart Holdings, Inc. (UPST) Surged On Wednesday

We recently published a list of These 10 Stocks Led Rally on Wednesday. In this article, we are going to take a look at where Upstart Holdings, Inc. (NASDAQ:UPST) stands against other stocks that led rally on Wednesday.

Ten companies led the charge on Wednesday, bucking a mostly pessimistic broader market, on the back of better outlook, positive earnings performance, and news of government support.

Wall Street’s main indices finished mix, with the Dow Jones and S&P 500 declining 0.50 percent and 0.27 percent, respectively. Nasdaq was the sole gainer, albeit inching up only 0.03 percent during the day.

In this article, we will explore the reasons behind the 10 firms’ strong performance. To come up with Wednesday’s top gainers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A close-up of a businesswoman using a laptop, being illuminated by the AI-enabled cloud interface sponsored by the company.

Upstart Holdings, Inc. (NASDAQ:UPST)

Upstart Holdings saw its share prices climb by 31.82 percent on Wednesday to finish at $88.77 apiece as investors cheered news of an impressive earnings performance last year.

In a statement, UPST said net loss in the last quarter shrunk by as much as 93 percent to $2.755 million from the $42.398 million registered in the same period a year earlier, as well as by 47 percent to $128 million in full-year 2024 from $240 million in 2023.

Revenues expanded by 56 percent to $218 million from $140 million in the last quarter, as well as by 24 percent in 2024 to $636 million from $513 million year-on-year.

UPST CEO David Girouard said the strong performance can be attributed to across all product categories growing dramatically.

“We launched into 2025 with unparalleled energy and optimism for the future of Upstart AI lending and the mission we’re on together,” he noted.

Overall, UPST ranks 1st on our list of stocks that led rally on Wednesday. While we acknowledge the potential of UPST as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as UPST but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.