Why Is SoFi (SOFI) Stock Up 20% Today?

SoFi (NASDAQ:SOFI) stock is riding higher on Friday as the company’s shares are recovering from a fall earlier this week.

SoFi logo at their headquarters location. SOFI stock.

Source: Michael Vi / Shutterstock

Before we talk about today’s rally, we have to first explain what dragged SOFI stock down. First up is the earnings report from rival loan company Upstart (NASDAQ:UPST). That report dropped early in the week and it wasn’t good.

Upstart reported mixed results for the quarter but there was more to it than that. It also cut its guidance for 2022 with its CEO warning shareholders about the dangerous risk of ongoing inflation and a potential recession.

The second major factor affecting SOFI stock this week is its own earnings report. While the company did manage to beat analysts’ estimates, its guidance for the upcoming quarter didn’t instill faith in its shareholders. It also didn’t help that the loan company accidentally released its earnings report early.

Now that we know what pulled SOFI stock down this week, let’s talk about why the shares are rallying higher today. The news reviving the company’s stock comes from fellow fintech company Affirm (NASDAQ:AFRM).

AFRM stock is getting a boost today from its most recent earnings report. It was able to beat out Wall Street’s revenue estimates and also increased its revenue outlook for the year. That confidence appears to be spreading to holders of SOFI stock today.

Before we close this out, it’s also worth noting that the market is in recovery today. The Dow, Nasdaq and S&P 500 are all gaining on Friday as the broader stock market bounces back from recent weakness.

SOFI stock is up 20.3% as of Friday afternoon.

There’s more stock market news to dive into below!

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On the date of publication, William White 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.

Article printed from InvestorPlace Media, https://investorplace.com/2022/05/why-is-sofi-sofi-stock-up-20-today/.

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