SoFi Stock Drops Near 52-Week Low Amid Bank Earnings Misses and Rate Pressure
Shares of SoFi Technologies Inc. (SOFI) fell 7.02% to $14.17 on Wednesday, trading near 52-week lows. The decline comes as a broader selloff in banking stocks hit the financial sector following disappointing third-quarter earnings from Bank of America Corp. (BAC), which missed Wall Street revenue and earnings estimates in part due to a $1.2 billion regulatory settlement.
Because SoFi holds a national bank charter, its share price frequently moves alongside broad banking market sentiment. A hot inflation reading also drove Treasury yields higher, adding further pressure on rate-sensitive lenders. Rising interest rates and balance sheet expansion cost SoFi more than $1 billion during the third quarter before accounting for hedges, compounding capital concerns for the company, which is down roughly 40% this year.
Investors are keeping a close watch on SoFi's upcoming third-quarter financial report. Wall Street analysts hold mixed opinions leading into the release, with price targets ranging from conservative holds to bullish calls based on valuation.
Key points
- SoFi Technologies Inc. (SOFI) shares fell 7.02% to $14.17, moving closer to 52-week lows.
- Disappointing third-quarter earnings from Bank of America Corp. (BAC) weighed heavily on bank sector sentiment.
- Higher Treasury yields and inflation data added pressure to rate-sensitive financial companies.
- SoFi stock is down about 40% year-to-date as analysts express split views ahead of third-quarter results.
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How we writeDisclaimerQuestions and answers
Why is SoFi stock falling today?
SoFi stock fell due to disappointing third-quarter earnings from Bank of America, rising Treasury yields, and broad weakness across the banking sector.
What is SoFi stock 52-week low?
SoFi traded down to $14.17 on Wednesday, moving near its previously reported 52-week low of $14.88.
How did Bank of America earnings affect SoFi?
Bank of America missed revenue and profit estimates, dragging down sentiment across financial stocks, including SoFi, which operates under a national bank charter.