What happened
The stock market was having a strong day on Wednesday morning, with all three major averages in the green and the S&P 500 higher by 1% at 10:40 a.m. ET. However, artificial intelligence (AI)-based lending technology company Upstart Holdings (UPST 3.90%) was a big outperformer, with shares higher by more than 5%.
So what
There are two likely explanations for today's move. For one thing, Upstart, like most other high-growth technology stocks, has been beaten down recently, and that's the group that is rebounding the most today. So, it's fair to say that much of the move is due to general market strength.
Image source: Getty Images.
With that said, there is some company-specific news out of Upstart. The company announced that it has added Corning Credit Union to its personal lending partners in the Upstart Referral Network, which should help keep its lending volume moving higher in 2022.
Now what
Even after today's move, Upstart is still 75% below its highs, so take it with a big grain of salt. And while adding another lending partner is certainly a good thing, the big X-factor will be whether the fintech company can replicate its personal lending success in the much larger auto lending industry.
Upstart is set to report its latest results on Feb. 15, so investors will have a better idea of the actual momentum in the company's business at that time. If the company's loan volume and profitability continue to move in the right direction, the current share price could end up being a bargain for patient investors.
