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If You Like Upstart Holdings, You'll Love This IPO Stock

By Brian Stoffel and Brian Feroldi – Aug 30, 2021 at 7:00AM

Key Points

  • This stock is focused on making it easier for e-commerce businesses to grow sales.
  • It offers a value proposition that can't be beat.
  • Currently valued at just $4 billion, there's lots of room to grow.

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While Upstart is focused on personal loans, this tiny IPO has a different niche -- with a very familiar approach.

The applications for artificial intelligence are just starting to surface in everyday life. Sometimes, such algorithms can wreak havoc on public life (think: echo chambers on social media). But in other areas, AI can create a more level playing field.

The AI used by Upstart Holdings (UPST 1.31%), for instance, is offering a better risk profile for lenders than traditional methods. Because of it, credit is available to a far wider populace, and lenders aren't losing money because of it. The stock has responded in kind, surging over 1,000% since its 2020 IPO.

But Upstart isn't the only company with a credible way of capitalizing on AI in the marketplace. Riskified (RSKD -1.82%) -- which went public just this summer -- is doing the same thing in e-commerce. It reduces fraud while increasing sales for companies that use its technology. 

In this eight-minute video filmed on Aug. 20, Motley Fool contributors Brian Stoffel and Brian Feroldi highlight the company and why they're so excited about its future.

Brian Stoffel has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Upstart Holdings, Inc. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Riskified Ltd. Stock Quote
Riskified Ltd.
$4.86 (-1.82%) $0.09
Upstart Holdings, Inc. Stock Quote
Upstart Holdings, Inc.
$18.52 (1.31%) $0.24

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