SoFi Technologies (NYSE:SOFI) stock is having an excellent week, and, despite some bumpiness today, its positive momentum is likely to continue. Yesterday, the fintech innovator announced that its annual shareholder meeting will be held on June 14 at 10 a.m. Eastern. The past two quarters have brought significant volatility. However, SOFI stock has demonstrated an impressive ability to hold its own against macroeconomic headwinds. Now it is poised to keep rising as the investing community prepares for updates from the company’s leaders.
This year’s meeting will be especially important as it will bring updates on SoFi’s outlook for a post-debt-ceiling crisis economy. The crisis has weighed heavily on the financial sector, but with the motion to extend it set to be resolved, SoFi’s growth prospects look better than ever.
Does this mean that now is the time to bet on SOFI stock as the company prepares to enter a new phase of growth? Let’s take a closer look at yesterday’s announcement and assess what investors can expect on June 14.
What’s Happening With SOFI Stock
This week has seen the cloud of uncertainty caused by the debt ceiling crisis start to subside. This news has been great for SOFI stock and its peers, as the momentum has recently sent them into the green. Today SOFI rose steadily for most of the day before dipping into the red in the afternoon. As of this writing, it is down about 3% for the day but has surged by more than 25% over the past five days. Now the new debt ceiling deal is putting the company in an excellent position to grow even more.
How does SoFi benefit from the agreement to raise the debt ceiling? As InvestorPlace’s William White reports, the agreement between President Joe Biden and House Speaker Kevin McCarthy involves the resuming of student loan repayments. This means that millions of Americans will need SoFi’s technology, which provides many services for payment calculation and payment options. As White notes:
“When those repayments restart, it’s likely that SoFi will see federal student loan holders considering refinancing. That could be a boon to the company’s loan business, which would likely help out SOFI stock as well.
Investors are excited about this prospect as heavy trading occurs with them buying shares today. As of this writing, more than 59 million shares of the stock have changed hands. That’s already well above the company’s daily average trading volume of about 36 million shares.”
Why It Matters
The national pausing of student loan payments has made experts hesitant to approach SOFI stock for some time. Now that it is finally ending, skeptics have one less reason to doubt its potential. The company is in an ideal position to grow, and SoFi’s leaders know it. At the shareholder meeting, it will likely be one of the primary points of focus. When investors learn exactly how the company plans to ride its new wave directly to the top, SOFI stock will soar.
SoFi has spent the past year battling steep macro headwinds, including the banking crisis that shook the entire financial sector. Now market conditions are finally starting to shift in its favor, creating the perfect environment for it to emerge as one of the year’s breakout stocks.
On the date of publication, Samuel O’Brient did not hold (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.comPublishing Guidelines.