Why Upstart Holdings (UPST) Is Among Wednesday’s Top Gainers?

We recently published a list of Bitcoin Miners, Quantum Computing Lead Rally: A Look at Wednesday’s Top 10 Gainers. In this article, we are going to take a look at where Upstart Holdings, Inc. (NASDAQ:UPST) stands among Wednesday’s top gainers that lead rally.

Wall Street’s main indices closed in the green territory on Wednesday, posting gains of more than 1 percent as investors cheered news of a tamed inflation rate for November.

The Dow Jones jumped by 1.65 percent, while the S&P 500 surged by 1.83 percent. Meanwhile, the Nasdaq Composite index soared 2.45 percent.

Ten companies mirrored the broader market optimism, led by the quantum computing and bitcoin mining sectors. Today, let’s take a look at what buoyed investor sentiment for each of the top gainers.

To come up with Wednesday’s top advancers, 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, Inc. (NASDAQ:UPST), an AI lending platform, rose by 6.72 percent on Wednesday to finish at $62.67 apiece after the company announced updates on its auto retail platform.

According to Upstart Holdings (NASDAQ:UPST), platform updates will upgrade financing workflows and dealership operations as part of its commitment to simplifying procedures and supporting more effective transactions by allowing sales managers to change financing, leasing, and payment choices all from one screen.

It also expanded its credit dashboards which feature FICO Auto Scores, downloadable credit reports, and compliance checks, which can help guide dealers’ lending choices.

An artificial intelligence-powered finance feature lets dealers seal deals sooner by highlighting loan options with better conditions or cheaper interest rates. The business pointed out that these instruments are meant to let dealers reach better loan-to-value ratios and more efficient management of financing approvals.

The move was aimed at helping shorten the time required to set up transactions.

Overall, UPST ranks 8th on our list of Wednesday’s top gainers that lead rally. While we acknowledge the potential of UPST as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. 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.

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