Upstart Holdings, Inc. (UPST) saw its stock plummet by 5.08% in intraday trading on Thursday, despite announcing a significant business deal. The sharp decline came after B. Riley cut its price target for the company, overshadowing the positive news of a $1.5 billion forward-flow agreement with Castlelake.

B. Riley, a notable financial services firm, reduced its target price for Upstart from $105 to $66, representing a substantial 37% decrease. This dramatic cut in price target likely sparked concerns among investors about Upstart's future growth prospects and valuation, leading to the sell-off. The revised target suggests that B. Riley analysts have become more conservative in their outlook for the AI-driven lending platform.

However, it's worth noting that Upstart also announced a $1.5 billion forward-flow agreement with Castlelake, a global alternative investment firm. This deal could potentially provide Upstart with a steady stream of loan purchases, which might help stabilize its business model in the long run. Despite this positive development, the market's reaction indicates that investors are currently more focused on the downgraded price target, highlighting the challenges Upstart faces in maintaining investor confidence in the current economic climate.