Investors in SoFi Technologies (NASDAQ:SOFI) are finally seeing some needed buying pressure on news of a new partnership. Today, SOFI stock has surged 9% on a rather important day in financial markets.
However, zooming out on the company’s stock chart, SoFi has been on the downtrend for some time. On a year-to-date basis alone, this stock is down more than 55%. And that’s after today’s rise.
Interestingly, much of the reason for this decline has to do with a risk-off environment. Investors have been selling stocks heavily ahead of today’s Federal Open Market Committee (FOMC) meeting. However, with the Federal Reserve hiking as expected and seemingly taking a 75-basis-point hike off the table for next meeting, investors appear to want to add some risk back into their portfolios.
That said, this isn’t the only core catalyst driving SOFI stock higher today. Let’s dive into the big catalyst investors are talking about with this fintech stock.
Why Is SOFI Stock Soaring Today?
In addition to the aforementioned macro catalyst, there’s a company-specific driver that’s sending SOFI stock higher. Today’s increase started in earlier trading and has accelerated this afternoon.
Specifically, this partnership is aimed at improving Mastercard’s market share in Latin America, while promoting SoFi’s fintech platform to reach many underbanked customers. It’s a win-win for both parties, which are up on the news.
Financial inclusion appears to be an altruistic goal most investors can get behind. I remain bullish on SoFi’s long-term growth prospects, despite currently bearish market conditions. Indeed, perhaps today’s catalyst will result in a flurry of interest. Whether it’s sustained or not is the real question investors need to ask.
For now, I think the market is correctly assuming a bearish stance. However, should a soft landing be achieved, SOFI stock is one that could be a winner over the medium term as we come out of this economic mess.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.