Upstart's Profitability Confirmed, but Macro and Credit Risks Loom

Upstart Holdings' Q3 print confirms its lending model can scale profitably, but also exposes the company's vulnerability to macro and credit headlines. The company's stock price has dropped significantly due to concerns over rising interest rates and the potential impact on consumer spending. Upstart's focus on alternative credit data and machine learning algorithms has allowed it to expand its customer base and increase revenue, but the company still faces challenges in maintaining profitability amidst a volatile economic environment.