Diving into the stock market where innovators and investors meet. Among them is the fearless Cathie Wood, an iconic figure in financial disruption, who recently saw one of her favorite fintech stocks, SoFi Technologies, reach a new high in a year. Despite this spectacular rise, the idea of selling her shares doesn’t even cross the minds of those who believe in it. With explosive growth and undeniable strengths, this rising star of financial technology continues to charm analysts and fund managers.
Cathie Wood, through her ARK Invest funds, shows strong confidence in SoFi Technologies, an innovative company in the banking sector. SoFi accounts for a significant part of the ARK Fintech Innovation ETF, representing 5% of the fund’s total assets. Recently, the SoFi stock experienced an impressive increase of over 140% in six months, reaching a new 52-week high. Recent developments, such as growing demand for SoFi’s personal loans and a new loan securitization agreement, highlight its growth potential. Moreover, the likely decrease in interest rates and favorable political conditions could further strengthen SoFi. Despite the rise in stock prices, there is no intention to sell, underscoring continued confidence in the company’s future trajectory.
A burgeoning fintech stock
In the ever-moving world of fintech, a few stocks stand out, capturing the attention of investors worldwide. Among these, SoFi Technologies recently reached a new 52-week high. This remarkable performance underscores the ongoing confidence of investors, especially iconic figures like Cathie Wood, who recognized the potential of this innovative company. Cathie has strengthened her position in SoFi through several of her funds, thereby affirming her belief in its exponential growth.
Factors behind this growth
What truly sets SoFi apart from others is its unique business model and rapid expansion in the personal loan sector. Recently, SoFi sealed a new personal loan securitization agreement worth $525 million with PGIM Fixed Income, underscoring the appeal of its assets to managers. Furthermore, as interest rates tend to decrease and political support is present, SoFi could benefit from reduced deposit costs and increased loan demand. This dynamic places the company in a strategic position against upcoming economic challenges.
Why hold onto your shares
Despite the rising price, holding onto your SoFi shares can be a wise long-term decision. The company is not only growing but also becoming increasingly profitable. Recently issued loans are showing better performances, and the banking platform model is attracting new deposits. These factors reinforce SoFi’s position in the market. For those wondering whether to sell, the answer may well be to think about future value rather than the current increase. SoFi continues to meet investor expectations, justifying a strategic retention of shares.
