Greetings,
Every Monday afternoon, we send out a stock trade idea to some of MarketBeat's best and most valued subscribers.
We think you are one of those people...but you are not on our alert distribution list yet.
This once a week alert is sent out via SMS so that you can see it right away.
Last week's alert was very popular with our subscribers, you won't want to miss out on the next alert -- and it doesn't cost you a thing.
We're going to send out another trade idea on Monday around noon, and I want to make sure that you're able to see it.
Add your name to the distribution list here.
You'll thank me on Tuesday morning.
Matthew Paulson
MarketBeat
Upstart Stock Could Pop on a Short Squeeze Soon
Written by Gabriel Osorio-Mazilli. Published 8/20/2025.
Key Points
- Upstart stock, backed by a strong fundamental story, now presents an upside opportunity for investors to consider in the coming months.
- Wall Street analysts now see double-digit upside for this company through higher ratings.
- Institutional buyers have jumped in ahead of the big move happening.
Every industry eventually reaches a point where new technology sparks a long-term cycle of efficiency and productivity gains, marking a pivotal moment of transformation. Today, the financial sector's lending and credit industry is on the cusp of such a breakthrough, creating a significant opportunity for investors who recognize this shift.
The $7 company helping Nvidia build the world's first trillion-dollar robot … (Ad)
Michael Robinson has been at the forefront of the technology market for over 40 years.
Spotting some profitable trends in tech … well ahead of Wall Street.
Like when he called Nvidia at a mere 80 cents a share.
Or Bitcoin when it was trading for just $300.
Throughout his illustrious career …
Michael has given his followers almost 150 different chances to register triple-digit gains.
Historically, lending decisions have relied on discretionary judgment from bankers and financial analysts. However, many of the routine tasks—underwriting, fact-checking and risk assessment—can be handled more efficiently by algorithms. That's where artificial intelligence comes in, automating these processes and freeing human capital to focus on truly discretionary decisions.
This dynamic is exactly what makes Upstart Holdings Inc. (NASDAQ: UPST) so compelling. The stock currently trades at a discount to both its previous highs and its future expected earnings-per-share (EPS) growth. These factors have already prompted action from some Wall Street firms—and they should encourage retail investors to take a closer look.
Potential for a Short Squeeze
Beyond the compelling fundamental backdrop, the technical setup is equally attractive. Upstart currently has $1.4 billion in short positions—about 21.9% of its float—which ranks among the highest in the market. Such heavy short interest sets the stage for a potential "short squeeze." When the stock rises sharply, short sellers may be forced to cover by buying back shares, adding further buying pressure and potentially fueling an outsized rally.
Upstart's Ceiling Is Much Higher
At just 60% of its 52-week high, Upstart's technical discount is clear—but the fundamental discount is even more striking. That gap between today's price and tomorrow's earnings power could drive significant upside, and some smart-money investors are already positioning accordingly.
For example, Geode Capital Management increased its Upstart stake by 3.8% as of early August 2025, bringing its holding to $129.9 million—roughly 2% of the company. This move signals confidence in Upstart's long-term prospects.
In its most recent quarter, Upstart reported 36 cents in EPS versus the Street's 27-cent estimate, underscoring its ability to outperform expectations. More importantly, analysts forecast approximately 70% EPS growth over the next 12 months, yet today's valuation barely reflects that potential. Over time, the market should close the gap between Upstart's current share price and its future fundamentals.
Currently, the consensus rating on Upstart is Hold with an average price target of $77.80. However, some analysts are more optimistic. Piper Sandler's Patrick Moley assigns an Overweight rating and a $90 price target, implying roughly 40% upside from current levels. If a short squeeze were to materialize, that could be just the beginning.
Investors comfortable with volatility may find Upstart's combination of strong growth prospects, favorable technical positioning and short-squeeze potential highly compelling. As always, it's important to weigh the risks, but for those willing to look forward, Upstart offers an intriguing entry point.
This email message is a paid sponsorship provided by MarketBeat Alerts, a third-party advertiser of DividendStocks.com and MarketBeat.
If you need assistance with your account, don't hesitate to email our South Dakota based support team at contact@marketbeat.com.
If you no longer wish to receive email from DividendStocks.com, you can unsubscribe.
© 2006-2025 MarketBeat Media, LLC.
345 North Reid Place, Suite 620, Sioux Falls, S.D. 57103. USA..
0 Response to "Last week's stock pick was quite popular..."
Post a Comment