Former Congressman Tom Suozzi regularly trades the stock market. He had reported over 320 trades in the past three years, including some transactions like buying $100,000 - $250,000 worth of Morgan Stanley (MS:US) shares in November 2021.
However, Mr. Suozzi was also betting on some high-growth stocks that took a beating last year as the Fed was forced to aggressively raise interest rates to curb decades-high inflation. For instance, the former Congressman Suozzi was buying Upstart Holding Inc (UPST:US) stock on May 05 when it closed at $89.04.
Upstart shares closed at $13.22 after falling about 97% from their all-time high in October 2021. Upstart is a lending platform that uses artificial intelligence (AI) to provide consumer loans. Given that business conditions significantly deteriorated in the environment of rising interest rates, Upstart shares crashed to an all-time low of $12.01 in December of 2022.
The San Francisco-based company provides buy now pay later (BNPL) services and was also affected by rising rates. Mr. Suozzi was buying AFRM stock on the day it closed at $146.13 while shares closed in the year 2022 at $9.67.
Another stock that Mr. Suozzi was wrong to buy Spotify (SPOT:US). The audio-streaming giant saw its stock fall over 65% in 2022 with Mr. Suozzi buying shares in 2021 when they were trading above $200 per share, and on some occasions, above $300. Spotify stock closed the last year at $78.95.