SoFi Surges 7.24% on Dovish Fed Hopes $2.51B in Trading Volume Ranks 28th in Market Activity

On August 22, 2025, SoFi Technologies (SOFI) surged 7.24%, with a trading volume of $2.51 billion—a 103.54% increase from the prior day—ranking 28th in market activity. The rally followed Federal Reserve Chair Jerome Powell’s dovish remarks, suggesting potential interest rate cuts amid signs of a slowing economy. Lower rates are expected to reduce borrowing costs and enhance valuations for growth stocks like SoFi, which has already gained 76.1% year-to-date.

Strong fundamentals underpin the move. SoFi reported a 35% average revenue growth over three years, with a 42.8% year-over-year increase in Q2 2025. Analysts raised price targets, including Mizuho ($26) and Needham ($25), citing robust lending platform performance and new cryptocurrency investment options. A partnership with Lightspark to launch blockchain-based international transfers further highlights the company’s expansion into fintech innovation.

However, insider sales by executives Kelli Keough and Jeremy Rishel, totaling 77,114 shares, signal reduced ownership stakes. Institutional investors increased holdings, with Vanguard Group boosting its stake by 1.1% in Q1 2025. Despite a high price-to-sales ratio (8.3x) and volatility history, SoFi’s debt-to-equity ratio (15%) and $5.1 billion in cash reserves underscore financial stability.

A backtest of a strategy buying top 500 high-volume stocks and holding for one day from 2022 to 2025 yielded a 6.98% CAGR, with a 15.59% maximum drawdown. The approach showed steady growth but highlighted the risks of high-volume trading, particularly during mid-2023’s downturn.