Why Upstart, SoFi, and Lemonade Plunged Today
Shares of newly public fintech companies Upstart Holdings (NASDAQ: UPST), SoFi Technology (NASDAQ: SOFI), and Lemonade (NYSE: LMND) were plunging today, down 5.2%, 9.3%, and 3.1%, respectively, as of 1:25 p.m. ET.
It wasn't a good first half of the trading day for growth stocks in general, as investors may be worried about the Federal Reserve meeting today, in which the Fed is widely expected to raise interest rates by 75 basis points and give commentary on the rate hike outlook into next year.
This year's rapid rate increases have hurt fintech stocks broadly in several different ways. Today, it appears investors are nervous again after the recent one-month rally in growth names. The decline even took hold of SoFi, which handily beat revenue and earnings estimates just yesterday, as the stock gave back all of its post-earnings gains, and then some.
Source Fool.com
