SoFi and Upstart each remain down 33% year to date despite Wednesday's rally, as falling Treasury yields rather than any company news drove the 6 to 8% fintech rebound. FINX sits down 12% year to date, and Upstart's 0.6% fund weighting means even an 8% single-day surge barely registers at the portfolio level. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Affirm didn't make the cut.
Grab the names FREE today. Fintech names are rebounding at midday Wednesday. SoFi Technologies (NASDAQ:SOFI) stock is up 6% to $18.66, Upstart Holdings (NASDAQ:UPST) stock is up 8% to $31.58, and Affirm Holdings (NASDAQ:AFRM) stock is up 7% to $78.55.
The move follows a sharp retreat in long-end Treasury yields. The Treasury Department stated it would increase buybacks of long-dated government debt "by at least double" for securities from the 10-year to 30-year sector. The 10-year Treasury yield fell 5 basis points to 4.65%, and the 30-year yield declined 8 basis points to 5.2% after hitting its highest level since 2007 earlier this week.
Lower long-end yields tend to help consumer lenders and high-multiple growth names. That backdrop is the most plausible driver of Wednesday's bid across fintech. No company-specific catalyst has emerged for the SoFi Technologies move today, so this reads as a sector rebound tied to the rate move rather than fresh company news.
SoFi Technologies stock is up 6% at midday. The shares are still down 33% year to date through Tuesday's close. One session doesn't close that gap.
The business tells a very different story. In the second quarter, SoFi Technologies posted revenue of $1.2 billion, a quarterly record, alongside adjusted net income of $160 million, up 65% year over year, for a net profit margin of 13%. Management projects SoFi Technologies' adjusted earnings per share rising at an annualized pace of 40% at the midpoint from 2025 to 2028.
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