Why Upstart Holdings Stock Is Falling Today

Upstart Holdings Inc UPST shares are trading lower Tuesday after the company reported worse-than-expected financial results and issued guidance below analyst estimates.

Upstart said second-quarter revenue increased 18% year-over-year to $228.16 million, which missed the estimate of $241.63 million, according to data from Benzinga Pro. The company reported quarterly earnings of 1 cent per share, which missed the estimate of 10 cents per share.

"This quarter's results are disappointing and reflect a difficult macroeconomic environment that led to funding constraints in our marketplace," said Dave Girouard, co-founder and CEO of Upstart.

Related Link: Upstart Holdings Q2 Earnings Recap: Revenue And EPS Miss, CEO Calls Quarter 'Disappointing'

Upstart said it expects third-quarter revenue to be approximately $170 million versus the estimate of $248.92 million.

Piper Sandler analyst Arvind Ramnani maintained Upstart with a Neutral rating and lowered the price target from $25 to $24 following the company's results.

UPST Price Action: Upstart has traded between $161 and $22.41 over a 52-week period.

The stock was down 12.3% at $28.29 at press time, according to Benzinga Pro.

Photo: StartupStockPhotos from Pixabay.