In normal times, you’d think that the 45% afterhours-plunge in the share price of a stock would look like a massive cliff dive in a chart. But these are not normal times, and the 45% dive that Upstart Holdings performed tonight after reporting earnings looks like a small-ish step down from, well, the stratosphere.
The company sells cloud-based software that uses “artificial intelligence” to make consumer lending decisions. It sells this service to lenders and has attracted some smaller lenders, but not any of the big banks, which use their own systems.
At the peak last October, the company was worth $35 billion, according to the collective idiocy of the stock market, 25 times the company’s expected revenues of $1.25 billion this year. It’s now worth $3.6 billion. The remaining $31 billion just vanished back into the ether from where they’d come during the hype-and-hoopla phase.Massacre Just Doesn’t Let Up: Another IPO Stock Kathoomphed 43% Afterhours: -90% from High | Wolf Street