Upstart (UPST -2.83%) is an innovator in the financial services industry. The business has developed an artificial intelligence-powered lending platform that can better assess a potential borrower's creditworthiness. Management says this technology can increase approval rates while keeping default risk in check. It's a winning solution.

Shares have certainly been volatile. However, Upstart is starting to win over investors. If you invested $1,000 in this fintech stock exactly three years ago, here's how much money you'd have.

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Taking investors on a wild ride

Upstart has made for a wildly successful investment in the past three years. Since July 31, 2022, the stock has skyrocketed 250%. This monster gain would've turned a $1,000 investment into $3,500 today. Any investor would be pleased with this result.

Despite such an impressive rise, the stock currently trades 78% below its peak. That record was established in October 2021, when Upstart was putting up tremendous growth.

To be clear, the company isn't firing on all cylinders like it was in 2021. However, the financial results have shown meaningful improvements, which explains the stock's performance in the past three years.

During the first quarter of 2025 (ended March 31), Upstart's transaction volume jumped 102% year over year, supporting a notable revenue gain of 67%. And the leadership team expects the business to be GAAP profitable for the full year.

High expectations

Upstart shares don't look cheap. They currently trade at a price-to-sales ratio of 10.9, highlighting the market's growing optimism toward the business. A valid argument can be made that this valuation adds significant downside risk should the company disappoint Wall Street when it reports earnings.

As a younger business that has yet to generate consistent profits, Upstart remains a risky investment, in my opinion.