What Happened?
Shares of digital financial services company SoFi Technologies (NASDAQ:SOFI) jumped 4.1% in the afternoon session after JP Morgan raised its price target on the stock, while broader positive sentiment also lifted financial technology companies. The investment bank maintained its Neutral rating on SoFi but increased its price target to $26.00 from $24.00. The stock also appeared to benefit from a wider rally among its peers. This positive mood in the sector was helped by reports from large banks, like JPMorgan and Bank of America, which showed that consumers continued to spend on their credit and debit cards, suggesting loan demand remained healthy. Furthermore, softer-than-expected inflation data raised hopes that the Federal Reserve would soon cut interest rates. A lower interest rate environment could spur more demand for SoFi's personal and consumer loans.
After the initial pop the shares cooled down to $29.08, up 3.6% from previous close.
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What Is The Market Telling Us
SoFi’s shares are extremely volatile and have had 42 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock dropped 7.3% on the news that new trade tensions and disappointing earnings from major tech companies weighed heavily on investor sentiment.
A key driver was the news that the White House is considering new restrictions on Chinese exports that use U.S. software, a move that could significantly impact technology companies. This uncertainty over escalating trade tensions created a broad sense of worry in the market. Simultaneously, shares of the semiconductor giant Texas Instruments dropped 6% after its latest earnings and future revenue forecast both came in weaker than expected, which is a big concern for the health of the tech industry. This poor performance from Texas Instruments immediately dragged down the entire semiconductor sector, causing other major chipmakers like Advanced Micro Devices and Micron Technology to also see significant declines.
Compounding the bad news, streaming service Netflix saw its stock slump 9% after it missed its earnings targets, partly blaming a tax dispute in Brazil. The combined effect of renewed trade war fears and the direct evidence of underperformance from influential companies in the technology sector was enough to push the major market indexes lower.
SoFi is up 106% since the beginning of the year, and at $29.08 per share, it is trading close to its 52-week high of $29.81 from September 2025. Investors who bought $1,000 worth of SoFi’s shares at the IPO in November 2020 would now be looking at an investment worth $2,775.
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