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Upstart Holdings Stock Soars 35% on Q4 & Share-Repurchase Program

Ollie Martin - AskTraders News writer
Ollie Martin trader
Updated 16 Feb 2022

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Key points:

  • Upstart Holdings stock soared 35% on impressive Q4 earnings
  • The fintech outlined rapid growth; with net income rising to $58.9M from $1M last quarter
  • A surprising $400M share-repurchase program also enticed investors this morning

The fintech boom continues to wage war on traditional economic practices; new technology, AI, and cutting-edge data algorithms are playing an increasingly vital role in the management of everything from finance to industry. Upstart Holdings, an AI-based platform that utilizes data to inform on lending decisions, recorded impressive fourth-quarter earnings after the market close on Tuesday – sending the stock soaring 35% 

The company smashed Wall Street revenue expectations, and added further fuel to the blaze with the surprising announcement of a new share-repurchase program; seen as somewhat of a rarity in a company still in its high-growth phase. Company revenue came in at $304.8M, up from $86.7M the previous year – tearing past analyst expectations of $262.9M. Strong bullish sentiment was derived from the change in Upstart’s revenue, which can be solely attested to fees; whereas last year, non-core revenue items provided much of the support. 

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In a more surprising turn, however, Upstart announced a share repurchase program of up to $400M, in what the company have deemed “economic opportunism”

Upstart CFO, Sanjay Datta, made a further comment:

“With the volatility in the trading of our stock, we have seen what we believe to be attractive buying conditions at various times over the past year, and our profitability puts us in a position to be able to initiate this program and take advantage of those situations on behalf of our shareholders,” 

All in all, Upstart ticked a lot of boxes for investors last night. Along with the repurchase program and strong revenue almost solely derived from fees, Upstarts overall net income this quarter came in at $58.9M, a staggering rise from just $1M the previous year. Fintech investments offer promising rewards, often at undervalued pricing. Upstart is a leading competitor in AI-based finance – a sector that will only continue to flourish.

Ollie Martin - AskTraders News writer
Oliver is a financial writer and analyst specialising in the US stock market, with years of personal experience in understanding micro/macroeconomic structures, market trends and fundamental analysis.