SoFi Technologies, Inc. (SOFI) saw its stock decline by 3.05% to close at $15.91 on December 2, 2024, after opening at $16.49 and reaching a high of $16.61. The stock's movement was influenced by a mix of cautious market sentiment towards fintech stocks and specific concerns about SoFi's accounting practices. J.P. Morgan analyst Reginald Smith maintained a Neutral rating on SoFi but raised the price target from $9 to $16, acknowledging the company's potential in the digital banking space. However, Smith highlighted concerns over SoFi's fair value discount rate assumptions, which are lower than those of its peers, potentially limiting the stock's upside.
The broader market sentiment was also affected by J.P. Morgan's downgrade of other fintech names like Upstart Holdings and LendingClub, which contributed to a cautious outlook on the sector. Despite the positive price target adjustment, valuation concerns and skepticism about SoFi's current market valuation weighed on investor sentiment. The stock traded at a volume of 51,371,263, slightly above its average, reflecting active investor engagement amid these developments.