Why SoFi Stock Skyrocketed 42% in October
SoFi Technologies (NASDAQ: SOFI) gained 42% in October, according to data from S&P Global Market Intelligence. It hadn't impressed investors this year despite reporting a profit in every fiscal quarter. However, it finally wowed the market with its third-quarter results.
SoFi has been reporting strong growth pretty much since it went public, but now it's also profitable. Its stock dropped in the previous bear market, and with its soaring growth rates, it was starting to look like a great deal. However, after doubling last year, the stock was dropping for most of 2024. On one hand, it was looking like an even better deal. But on the other hand, there was obviously something making investors think it was too risky, or a value trap.
It wasn't growth, which continues to come in at double-digit rates, and it wasn't profitability, which has been sustained and growing since the 2023 third quarter. No, it was interest rates.
Source Fool.com
