The stock surged higher on the news, initially gaining nearly 20% on Tuesday’s open compared to the Monday close.

Since then, the stock has pulled all the way back to the low $5 range as investors worry about rising interest rates and the sustainability of SoFi’s still unprofitable business model.

SoFi’s success was no surprise to the LikeFolio team.

Three weeks ago, we featured SOFI as one of the Three Beaten Down Stocks We LOVE on our monthly podcast.

Why were we so confident?

• Consumer mentions of SoFi’s product suite including consumer banking, auto loans, and credit cards were rising significantly (+89% higher YoY).
• The company has a strong history of innovation in both product development (crypto integration) and marketing (exclusive access to Rivian IPO).
• We believed the negative impact of rising interest rates was already more than priced in.

Despite recent volatility, SoFi’s recent earnings report is a confirmation of our long-term thesis supporting the stock.

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