What Happened?
Shares of digital financial services company SoFi Technologies (NASDAQ:SOFI) jumped 3.5% in the afternoon session after Needham raised its price target on the company.
The investment firm increased its target to $29 from $25 while maintaining a Buy rating on the stock. Needham's positive outlook is based on improvements in funding availability and costs for lending businesses, which are expected to support stronger growth, especially if interest rate cuts materialize. This sentiment was bolstered by encouraging remarks from CEO Anthony Noto at a recent Goldman Sachs conference. The company has demonstrated strong underlying performance, achieving profitability in the first half of 2025 with revenue growing over 30% year-over-year. SoFi also recently announced a new multi-year partnership with NFL quarterback Josh Allen to enhance its brand visibility.
After the initial pop the shares cooled down to $26.46, up 3.7% from previous close.
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What Is The Market Telling Us
SoFi’s shares are extremely volatile and have had 39 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 17 days ago when the stock gained 5.1% on the news that investors reacted to the company's strong business momentum and recent positive financial results. The positive sentiment appears driven by the company's strong business performance, particularly in its core lending segments. This momentum is reflected in the company's broader second-quarter results, which included a 44% rise in adjusted net revenue, signaling robust overall growth.
SoFi is up 87.2% since the beginning of the year, and at $26.46 per share, has set a new 52-week high. Investors who bought $1,000 worth of SoFi’s shares at the IPO in November 2020 would now be looking at an investment worth $2,524.
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