Why Upstart, SoFi Technologies, and Affirm Rocketed Higher Today
Shares of new fintech companies Upstart (NASDAQ: UPST), SoFi Technologies (NASDAQ: SOFI), and Affirm (NASDAQ: AFRM) rallied today, up 7.3%, 5.1%, and 13.7%, respectively, as of 12:20 p.m. ET.
These fintech stocks have been among the most beaten-down amid this year's bear market. First, higher interest rates took down the multiples for all stocks, especially growth stocks such as these three. As the Federal Reserve hiked interest rates more aggressively to fight inflation, investors feared a recession and therefore charge-off risks to these new lenders.
However, if inflation and interest rate trends reverse, these stocks can rally very hard, as we are seeing today. Recent days have seen widespread buying, as interest rates have come down and leading indicators of inflation seem to be cooling fast.
Source Fool.com
