Why Upstart (UPST) Still Has an AI-Lending Moonshot Case

Upstart Holdings, Inc. (NASDAQ:UPST) is one of the best “moonshot” tech stocks to buy according to short sellers. The stock’s latest publicly reported short interest stood at 33.83% of float as of April 30, 2026, according to MarketBeat.

Upstart gave both sides of the trade fresh material on May 5, when it reported first-quarter revenue of $308 million, up 44% year-over-year, while transaction volume rose 77% to 425,356 loans and total originations increased 61% to roughly $3.4 billion. The company also reaffirmed its full-year 2026 outlook for revenue of about $1.4 billion and adjusted EBITDA of about $294 million. That supports the moonshot case: Upstart is trying to make AI underwriting a scaled marketplace layer for consumer credit, not just a fintech lending widget with a fancy hat.

Short sellers still have obvious reasons to stay involved. Upstart’s first-quarter net loss widened to $6.6 million from $2.4 million a year earlier, while contribution margin fell to 50% from 55%, and adjusted EBITDA margin dropped to 13% from 20%. The company also remains exposed to credit-market conditions, funding availability, borrower performance, and lender demand. That leaves UPST as a classic moonshot fintech: huge AI-credit upside, but still chained to the interest-rate and credit-cycle dungeon.

Brian A Jackson/Shutterstock.com

Upstart Holdings, Inc. (NASDAQ:UPST) operates an AI lending marketplace that connects consumers with banks and credit unions across personal loans, auto loans, home equity lines of credit, and related lending products.

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