SoFi Eyes Record Run as Easing Student Loan Overhang Lifts Stock

SoFi Technologies Inc. is rising for a ninth straight day, as optimism over plans to restart student loan payments has yielded a record run of gains.

The online lender, which went public through a deal with a special purpose acquisition company run by venture capitalist Chamath Palihapitiya in 2021, has surged 43% over the period. SoFi stock’s recent strength was jump-started in late May as legislators reached a debt-limit deal that included the resumption of student loan payments.

The anticipated end of the moratorium helps alleviate an overhang for SoFi, as the firm’s student loan refinancing business was under pressure during the pause.

SoFi Gains for Ninth-Straight Day | Recent strength was kickstarted by debt-limit deal

Shares have more than doubled so far in 2023, as SoFi recovers from last year’s rout, when the stock plunged more than 70%. It’s been a popular bet for short sellers, though they’ve been moving to cover their contrarian positions as the stock rocketed in recent weeks, according to S3 Partners’ Ihor Dusaniwsky.

The recent rally has pushed the stock to its highest level in more than a year, making it one of the top performers in the Russell 1000 Index so far this year.