• SoFi stock rallies sharply in the premarket on bank license approval.
  • SOFI shares trading at $14.10 in premarket after Tuesday close of $12.06.
  • SoFi to acquire Golden Pacific Bancorp, closing expected February.

SoFi (SOFI) shares are rallying sharply in the premarket as the company has gotten approval to operate as a fully fledged bank. The shares are currently up nearly 17% at the time of writing, trading at $14.10. 

SoFi Stock News

SoFi went public last year through a SPAC deal with former Facebook executive Chamath Palihapitiya vehicle Social Capital Hedesophia Holdings V. SPAC stocks were one of the hot retail sectors last year and many were basically meme names. Lucid Group was probably the best known along with DWAC.

SoFi is basically a lending company that provides student loans, auto loan refinancing, etc. It is also involved in the mortgage and investment business. The banking charter has its origins in the deal announced last March by SoFi to acquire Golden Pacific Bancorp, a California-based community bank. The Office of the Comptroller of the Currency gave SOFI conditional approval for its bank charter back in October, and this has now been made official from the OCC and Federal Reserve.

Commenting on the approval, SOFI CEO Anthony Noto said, “With a national bank charter, not only will we be able to lend at even more competitive interest rates and provide our members with high-yielding interest in checking and savings, it will also enhance our financial products and services to ensure they efficiently meet the needs of our members, business partners, and communities across the country, while continuing to uphold a high bar of regulatory standards and compliance".

Overall, this should be a strong positive for the stock, but it does bring the burden of increased regulation and reserve requirements. However, it will allow SOFI to grow its revenue.

SoFi Stock Forecast

SOFI stock has been in a sharp downtrend for most of the last two to three months. The stock is highly volatile as the chart below demonstrates. The first resistance comes from the point of control at $15.23, this is the price with the highest volume. It is not until $16.49 that we end the series of lower highs and so the longer term downtrend. 

SOFI 1-day chart

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD recovers modestly, trades below 1.0700

EUR/USD recovers modestly, trades below 1.0700

EUR/USD has recovered modestly after having dropped to a fresh daily low below 1.0650 in the early American session. With Wall Street's main indexes trading in positive territory, the dollar is struggling to continue to gather strength before the Fed publishes the May minutes.

EUR/USD News

GBP/USD reclaims 1.2500, erases daily losses

GBP/USD reclaims 1.2500, erases daily losses

GBP/USD has regained its traction in the second half of the day and advanced toward the 1.2550 area. The improving risk sentiment seems to be limiting the dollar's gains and helping the pair push higher ahead of FOMC Minutes.

GBP/USD News

Gold retreats to $1,850 as US yields rebound

Gold retreats to $1,850 as US yields rebound

Gold has turned south in the American session and retreated to the $1,850 area. The benchmark 10-year US T-bond yield recovered into positive territory following an earlier decline, causing XAU/USD to stay under bearish pressure.

Gold News

Terra’s LUNA fork could happen tomorrow, here’s how you need to prepare

Terra’s LUNA fork could happen tomorrow, here’s how you need to prepare

Terra’s LUNA 2.0 testnet is now live, the snapshot could happen on May 26 and the mainnet launch is expected to occur as soon as Friday, May 27, thus completing the LUNA fork.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures