Upstart Holdings stock rises as Eric Jackson builds position

Published 30/07/2025, 18:16
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Investing.com -- Upstart Holdings Inc (NASDAQ:UPST) stock gained 5% following a bullish investment thesis shared by Eric Jackson of EMJ Capital, who predicted the AI lending platform could deliver a 15-fold return by 2028. Jackson was a primary catalyst for a 500% surge in Opendoor (NASDAQ:OPEN) stock this month, as he predicted the stock would reach $82 per share, driving retail interest.

Jackson revealed he has built a long position in Upstart, initially acquiring IPO shares at $20 in December 2020. He outlined his case for the stock reaching $200 by the end of 2025 and potentially $1,200 by 2028, citing the company’s AI capabilities, diversified product lines beyond personal loans, and the tailwinds expected from Federal Reserve interest rate cuts.

The EMJ Capital founder highlighted Upstart’s evolution since its initial surge to $400 per share in 2021 and subsequent crash to $13 in January 2023. According to Jackson, the company has spent the last three years improving its models for personal loans, auto loans, and HELOCs, with approval rates now reaching 90%.

Jackson’s thesis contradicts Wall Street consensus estimates of 25-27% annual top-line growth through 2028. Instead, he projects Upstart will see revenue growth rebound to 50% next year and 70% in 2026 as macroeconomic conditions improve, particularly if the Federal Reserve implements deeper, faster rate cuts.

The investor also pointed to Upstart’s relatively small float of 94 million shares and high short interest as potential catalysts for significant price movement when buyer interest returns to the stock.

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