Why Shares of SoFi Are Up This Week
Shares of SoFi (NASDAQ: SOFI) traded nearly 16% higher for the week as of market close Thursday. While there was no obvious reason for the move, the fintech company appears to be benefiting from positive news regarding its peers and from investors' anticipation of several upcoming catalysts.
Toward the end of October, one of SoFi's competitors, LendingClub (NYSE: LC), a digital marketplace bank that focuses heavily on the online personal loan space, reported superb earnings results. That stock has gained nearly 50% since the report was delivered. Investors believe this bodes well for SoFi's upcoming third-quarter report, which is scheduled to be released on Nov. 10.
Interestingly, LendingClub obtained a bank charter earlier this year, which has done wonders for its business. Namely, the bank charter allows LendingClub to access cheaper funding, streamline its operations, and save on loan origination costs.
Source Fool.com
