Options Market Statistics: Upstart Stock Sinks as Tough Lending Landscape Drives Downbeat Earnings Outlook, Options Pop

When thinking of AI, Nvidia might be the first stock to come to mind. Its stock rallied at the tail-end of 2022 on hopes that artificial intelligence would drive its business, then continued gaining when these hopes became reality. But a strange thing has happened since the stock peaked on July 18 -- good news on AI isn't boosting shares the way it used to.

On Aug. 8, Nvidia revealed its next-generation version of the GH200 Grace Hopper Superchip, something that will make it faster and better at handling AI duties. The stock, though, finished that day down 1.7% at 446.64, just above its 50-day moving average near $429. And on Wednesday, the 50-day broke when Nvidia dropped 4.7% to $425.54, making it the biggest loser in the S&P 500 on no news at all.

Media giant The Walt Disney Company reported third-quarter financial results after the market close Wednesday. The company reported operating income of $3.56 billion, which was flat on a year-over-year basis. Operating income was up 11% year-over-year for the company's Parks segment and down 18% year-over-year for the Media segment.

Disney reported higher operating results at international parks, with the segment seeing revenue that was 94% higher year-over-year. Domestic theme park revenue was up 4% year-over-year. The company noted that it saw a decline of operating income for domestic parks due to Walt Disney World having higher costs and lower volumes.

Upstart Holdings Inc. has struggled to contend with a tougher lending environment, and the company indicated Tuesday that its challenges are expected to continue.

The financial-technology company, which uses artificial intelligence to inform lending decisions, delivered a lower-than-expected forecast for the current quarter, as Chief Executive David Girouard called out high interest rates and "an environment where banks continue to be super cautious about lending."

For the third quarter, Upstart expects $140 million in revenue, while analysts had been anticipating $155 million. The company also models $5 million in adjusted earnings before interest, taxes, depreciation and amortization (Ebitda), while analysts were looking for $9.6 million in adjusted Ebitda.