Why Upstart and Celsius Soared After Hours Tuesday

The stock market had a tough day on Tuesday, losing ground as investors awaited key inflation data that should come out on Wednesday. The worst drop came for the Nasdaq Composite (^IXIC -1.49%), with less extreme declines for the Dow Jones Industrial Average (^DJI -0.77%) and S&P 500 (^GSPC -1.11%).

Data source: Yahoo! Finance.

There are still many stocks that are far below their best levels in recent years after 2022's bear market, while others have found ways to perform well even under tough conditions.

Upstart Holdings (UPST -5.62%) and Celsius Holdings (CELH -4.41%) both reported their latest financial results after the closing bell on Tuesday, and both saw their share prices move higher. Find out the details you need to know, as well as what could be coming down the road for these popular stocks.

Upstart gets outside support at the right time

Shares of Upstart Holdings soared 45% in after-hours trading Tuesday afternoon. The provider of alternative credit-scoring information reported first-quarter financial results that reflected the tough environment in banking but also showed support for the company's algorithmic approach.

The numbers from Upstart weren't pretty. Revenue plunged 67% year over year to $103 million, as Upstart originated slightly over 84,000 loans totaling just under $1 billion, down 78% from year-ago levels. The company also became unprofitable, with adjusted net losses of $38.7 million, reversing a year-earlier profit and working out to $0.47 per share. Even adjusted pretax operating earnings went negative for the company.

However, Upstart sees things improving in the second quarter. Revenue should recover to $135 million, with adjusted net losses narrowing to about $7 million.

Perhaps most importantly, co-founder/CEO Dave Girouard said that Upstart had secured long-term funding agreements that could deliver more than $2 billion in loans to the Upstart platform in the coming year. With many worried that Upstart would have to carry a rising number of loans on its own balance sheet, news that outside investors remain interested in loans that its platform generates was taken positively. With Upstart stock still down so far from its highs, some investors are also rooting to see the credit scoring specialist gain some positive momentum.

Celsius powers up

In comparison to Upstart, the 7% rise in Celsius Holdings stock might seem tame. Yet the energy drink disruptor has a market capitalization almost seven times greater than Upstart's, so the rise after Celsius posted first-quarter results made more money overall for its shareholders.

Celsius continued to see impressive results in the first quarter of 2023. Revenue of $260 million worldwide jumped 95% year over year, with North American sales more than doubling from year-ago levels. Net income soared more than sixfold to $34.4 million, which worked out to $0.40 per share.

Several things are helping Celsius. Increased consumer awareness of the brand has helped drive more interest in its energy drink products. In addition, a key partnership with beverage stock giant PepsiCo has increased availability by making use of Pepsi's distribution system. As a result, Celsius has reached the No. 3 position among energy drink brands in the U.S. market.

Investors and Wall Street analysts alike have been bullish on Celsius for some time. With strong results justifying that optimism, Celsius shares don't have that much further to go before the stock could reach new record highs.