Why SoFi, PayPal, and Silvergate Capital Plunged on Tuesday
Shares of fintech stocks SoFi (NASDAQ: SOFI), Paypal (NASDAQ: PYPL), and Silvergate Capital (NYSE: SI) were trading lower on Tuesday, falling 4.8%, 6%, and 5.9%, respectively, as of 3:28 p.m. ET.
There wasn't much in the way of company-specific news today, although SoFi did announce an increase to the interest rate in pays to depositors. More likely, since these fintech stocks are highly sensitive to the broader health of the economy, a slew of negative economic data Tuesday was probably driving their stock prices lower.
On Tuesday, the International Monetary Fund (IMF) revised its global growth outlook lower, to just 3.2%. That's well below where it was to start the year, and would be a significant deceleration from the 6.1% growth figure posted last year. Moreover, the head of the IMF issued very gloomy commentary along with the revision, citing increased risks to the world economy and the potential for global recession.
Source Fool.com
