As consumers become more conscious of their spending habits in times of economic contraction and rising prices, businesses built on personal credit can expect it going through hard times.

Upstart Holdings Inc UPST and Affirm Holdings Inc AFRM will release their quarterly earnings reports after the market close on Tuesday, and investors are expecting to see how mid-year rate hikes impact the consumer debt market.

Ordinary Holdings

Shares of artificial intelligence credit information platform Upstart rose Tuesday ahead of the company’s third-quarter earnings report, which is due to be released at 4:30 p.m. EST.

The stock is up 2.09% at $19.01 at the time of writing, even though most analysts downgraded the company’s one-year price target after the last earnings call.

The company is expected to report a quarterly loss of $0.08 per share on revenue of $169.42 million.

On October 25, Benzinga’s options scanner increased 13 unusual options trades for Upstart, meaning some whales are turning bearish on the stock.

The same day two weeks ago, Mizuho Securities Analyst Dan Dolev initiated coverage of Upstart Holdings with an Underperform rating and a price target of $17.

The macroeconomic environment weighs on Upstart. With interest rates rise the market for personal finance products is collapsing at an unprecedented rate.

The company’s substandard borrowers and rising arrears due to high interest rates and inflation will likely continue to weigh on funding, Dolev said in his opening note.

“Assuming the macroeconomic environment will deteriorate over the next 12 to 18 months, we think UPST funding is unlikely to resume en masse any time soon,” he added.

Also read: Is It Time to Buy Amazon and Google Amid Recent Slump? What Cramer has to say

Confirm stocks

Consumer credit platform Affirm is also set to release first-quarter results on Tuesday, making for a good day for the company’s shares.