Why Jim Cramer Likes Upstart Stock Following Pullback

Following a pullback in the overall markets, some stocks are beginning to look inexpensive relative to their growth rates, Jim Cramer said Wednesday on CNBC's "Squawk On The Street."

"I think there are stocks that have now cooled off in the last few days and are getting interesting," Cramer said. "I'm going to give you one that is a high growth stock that is amazing: Upstart."

Upstart Holdings Inc UPST is expensive as it trades at around 248 times earnings, he noted. However, the company provides a proprietary, cloud-based, artificial intelligence lending platform and Cramer thinks artificial intelligence lending is the future.

Upstart's platform aggregates consumer demand for loans and connects it to the network of Upstart AI-enabled bank partners.

"This is the end of FICO. FICO is a ridiculous, stupid measure that gives you no insight into whether someone can pay back a loan," Cramer said.

"I think FICO is a joke versus [Upstart's artificial intelligence lending platform.]"

From Last Week: Upstart Holdings Stock Continues To Fly: What's Next?

UPST Price Action: Upstart has traded as high as $346.54 and as low as $22.61 over a 52-week period.

The stock is up 4.29% at $326.83 at the time of publication. 

Photo: Gerd Altmann from Pixabay.