Upstart's (UPST -0.78%) stock has taken a beating for the past six months and a member asks if it can come back. In this video clip from the "Future of Fintech" on Motley Fool Live, recorded on May 19, Fool.com contributor Matt Frankel offers his thoughts on why he thinks the consumer lending company, as well as SoFi (SOFI 2.25%), can make a turnaround.
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Matt Frankel: I believe both will come back I don't know when. As we saw during the .com boom, some of the best tech companies took a decade to come back to their prior highs or more. Hopefully, it won't take that long. But the businesses are both doing exactly what they're supposed to, is the key takeaway. There's nothing wrong with the businesses, it's not like the .com crash in the sense that a lot of the businesses that fell didn't really even have revenue yet or weren't even close to profitability, which both of those companies are SoFi and Upstart.
Upstart is profitable, consistently. It has been for a couple of years now. I'm a buyer of both stocks, I don't own an Upstart yet because I haven't been allowed to because I talk about it so much. SoFi I've added to many times since the downturn started and even more after its recent earnings decline. I'm still bullish on both of those stocks long term. I'm right there with you on SoFi. My initial cost basis was something like $18 a share. So my position is significantly down as well. But I'm holding because the business is doing exactly what we want it to do.
