SoFi Technologies (SOFI 0.12%) saw its stock price fall 2.1% on Wednesday. It had been up 1.9% around 10:30 a.m. ET, but sank lower and ended the day at $5.55 per share. The stock price is down about 65% year to date.
It was a mixed day on Wall Street as the Dow Jones Industrial Average was up 2 points, the S&P 500 was down 28 points (0.7%), and the Nasdaq Composite dropped 228 points (2%).
There was no specific catalyst that dragged down the online bank and lender SoFi Technologies on Wednesday. Instead, the fintech likely felt the pull from some high-profile technology companies that underperformed in the third quarter.
The big one was Alphabet, which missed revenue and earnings estimates and ended the day down 9.6%. And while Microsoft beat earnings expectations, the stock was down 7.7% as cloud revenue did not meet estimates.
The Nasdaq fell on the news, ending the day down 228 points, or 2%, and it brought fintechs including SoFi down with it.
The Nasdaq swoon erased early gains by SoFi, which was up about 1.9% early in the trading day on strong third-quarter earnings by Visa. Visa beat revenue and earnings estimates with earnings up 19% year over year on a 10% year-over-year increase in gross payment volume, spurred by higher consumer spending. Visa stock was up 4.7% on the day.
SoFi investors should set aside the subpar results from the technology giants and focus on the strong quarter by Visa. Higher consumer spending drove gains in both transactions and gross payment volume for Visa, which is a good sign for the bank and its digital payments platform, Galileo, which rely on spending, lending, and economic growth.
SoFi is a great value with a lot of earnings upside, but investors will get a better view of where SoFi stands when it reports its third-quarter earnings next week on Nov. 1.