Upstart (NASDAQ: UPST) stock dropped 23% in July, according to data provided by S&P Global Market Intelligence.
There was macroeconomic data pointing to continued pressure for lenders, which is its core business, as well as continued concern about agentic artificial intelligence (AI) replacing software-as-a-service (SaaS) products
Upstart is in for a long recovery Upstart stock plunged several years ago when it couldn’t sustain incredibly high growth as interest rates rose, and it hasn’t gotten back on its feet yet. The business has somewhat recovered, but it’s not where it used to be. It’s also facing a tough macroeconomic environment, hampering market confidence in its future.
On top of that, the market has soured on many SaaS stocks in the age of agentic AI. The worry is that agents can perform many of the tasks that these companies take care of. Upstart is an AI-based credit evaluation platform, and it claims to approve more loans without adding risk to the lender.