AI Loan Stocks Plunge 5%... $200 Billion Vanished in a Day

Upstart Holdings (UPST) closed at $30.58 per share on the Nasdaq, down 5.15%, trimming its market capitalization by about $140 million (roughly KRW 200 billion) on the trading day. Trading volume reached approximately 4.7 million shares, and its current market cap stands at around $2.9 billion (about KRW 4 trillion).

Research firm Needham recently reaffirmed a “Buy” rating on Upstart, but the stock’s volatility has widened amid a securities-fraud class-action lawsuit targeting CTO Paul Gu. In May, the company also appointed former banking executive Tim Weness to its board and signaled plans to bolster its AI-driven lending marketplace strategy. (marketbeat.com)

Founded in 2012, Upstart Holdings is a U.S. fintech company operating an online loan marketplace that leverages AI-based credit models to connect borrowers with over 100 banks and credit unions for personal, auto, and home loans. Although it posted both revenue growth and profitability in Q1 2026, sustaining a positive earnings trend, Upstart is still classified as a “high-risk, high-volatility” growth stock due to interest-rate pressures and regulatory and litigation risks. (ir.upstart.com)