Retail investors are winning today, with a range of popular stocks outperforming the market. One such company in focus today is SoFi (NASDAQ:SOFI). As of 2:00 p.m. Eastern, SOFI stock has surged more than 4% on what appears to be risk-on sentiment creeping back into the market.
This change in market sentiment comes amid a harsh selloff with popular retail favorites. SoFi, like many of its meme-stock peers, has taken a hit lately. That’s mostly because investors have been largely de-risking their portfolios, selling off less-profitable or unprofitable companies in favor of those with iron-clad balance sheets.
However, SoFi’s recovery today appears linked to one company-specific catalyst as well. The company reported it intends to roll out extended trading hours for its members. This move, to provide an additional 4.5 hours of trading to its members, is a move to empower the company’s customers to trade on their own terms. Typically, extended-hours trading is limited to a few platforms, making this move an intriguing one for investors to consider.
Let’s dive into the implications of this decision. After all, a 4% move higher is significant, and investors seem to like what they’re hearing.
Is This the Catalyst to Take SOFI Stock on Another Run?
As a socially focused fintech company, SoFi’s move to extend trading hours may not be surprising. After all, SoFi and its peers are all looking for an edge. And with many trading platforms sticking to the typical 9:30 a.m. to 4:00 p.m. Eastern trading day, extended-hours trading is something many have viewed as only applicable to the “elites.”
Opening up extended trading capabilities to retail investors is certainly a move that will raise eyebrows. Liquidity is very different in after-market sessions. Accordingly, the wild moves investors can see during off hours could provide increased risk.
On the other hand, allowing traders to get in or out of positions at all times does democratize this process significantly. Additionally, more trades means more revenue for SoFi, a company that’s been under significant pressure this past year.
Where SOFI stock will go from here is uncertain. However, today’s move higher is a step in the right direction.
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.