Upstart shares drop 13% after Q1 earnings miss key profit metric amid AI optimism

Upstart's stock fell over 13% in after-hours trading following its first-quarter earnings report. The AI lending company missed a key profit metric, causing investor concern despite management's explanation that the issues stem from seasonal timing rather than fundamental business changes. CEO highlighted that analysts may have misjudged seasonal trends, suggesting the profit pressure is temporary. The stock decline reflects near-term profit worries overshadowing the company's long-term AI growth potential.