5 Reddit Stocks That Are Getting Crushed

3. Upstart Holdings, Inc. (NASDAQ:UPST)

Number of Hedge Fund Holders: 20

Decline in Share Price Over Past Six Months: 63.49%    

Upstart Holdings, Inc. (NASDAQ:UPST) owns and runs a cloud-based lending platform that uses artificial intelligence technology. The company recently launched a new mobile-first auto retail platform for car dealers, resulting in an over 7% spike in the shares. The platform gives dealers more options to customize according to the specific needs of the shoppers. Car manufacturer Volkswagen has recently joined a growing list of car firms that have established partnerships with Upstart. 

On March 31, Stephens analyst Vincent Caintic initiated coverage of Upstart Holdings, Inc. (NASDAQ:UPST) stock with an Equal Weight rating and a price target of $124, noting the firm had a large addressable market and the transaction volume growth was accelerating. However, the analyst cautioned that funding partners, not consumers, seemed like customers of the firm. 

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Third Point is a leading shareholder in Upstart Holdings, Inc. (NASDAQ:UPST) with 4 million shares worth more than $605 million. 

In its Q4 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and Upstart Holdings, Inc. (NASDAQ:UPST) was one of them. Here is what the fund said:

“Upstart Holdings, Inc. (NASDAQ:UPST) was another material detractor during the quarter. Upstart is an artificial intelligence (AI) and cloud-based lending platform. Upstart Holdings, Inc. (NASDAQ:UPST) uses over 1600 variables in its AI models. Its lending platform delivers lower default rates, higher approval rates, lower rates for consumers, and higher returns on investment for its bank and institutional clients. As former owners of FICO, we believe Upstart Holdings, Inc. (NASDAQ:UPST) has the potential to be the FICO of the 21st century. Recent stock price volatility has given us an opportunity to follow our investment discipline. During the third quarter of 2021, Upstart’s stock price increased significantly, and we materially reduced our position in the company. Following its most recent earnings release, our value increased but Upstart’s stock price began to decline significantly. With a significantly improved price to value ratio, we added to our position in Upstart. We simply took advantage of stock price volatility to manage risk in the portfolio and improve our returns and our prospective returns.”