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SoFi stock soars following Q4 earnings report

Yahoo Finance Live anchors discuss what's driving SoFi stock higher on Monday.

Video Transcript

[AUDIO LOGO]

- All right, shares of SoFi soaring after reporting better than expected earnings and providing an upbeat revenue forecast for '23. But its student loan business is taking a hit. Originations-- excuse me, it's a tough word for me today-- we're down 72% in the quarter as a result of the student loan payment pause. We heard from the SoFi CEO Anthony Noto on Yahoo Finance earlier today. He explained how eliminating the moratorium on student loan payments could help with the debt ceiling.

- There's currently a debt ceiling issue that's coming. If they just eliminated the moratorium on student loan payments, they'd recoup 50-- sorry, $5 billion of tax revenue on a monthly basis, which could help fund some of that debt with better servicing. And so it's right now a political quagmire and, unfortunately, we don't have leaders in Washington that are thinking about the taxpayer every day and using these blanketed programs to subsidize people that don't need it.

- "Political quagmire" and leaders in Washington that don't consider the taxpayer-- yeah, he's got that spot on. But when it comes to the debt ceiling-- I'm going to take this in the direction of this fight-- Janet Yellen seems genuinely concerned every time you hear her speak about the debt ceiling. Most don't take this seriously at all, including our own Rick Newman, who says this is just political theater. But based on what played out with that leadership fight with Kevin McCarthy, I think we have to take this threat seriously. We don't know who is driving the ship right now in Congress.

- We don't know who is driving the ship in Congress and I think the results here from SoFi might have taken a lot of-- on Wall Street by surprise just in terms of how resilient it seems like their business is even in this type of environment. When you dig down into these numbers, the jump that we saw in the stock today-- over 12%-- it's the biggest jump that we've seen in shares. In just over two months losses seem to be narrowing here at SoFi, the third straight post-earnings gains that we've seen in the stock.

Now looking ahead, though, personal loan originations obviously a huge focal point. They were up 50% in the recent quarter from a year ago, kind of, offsetting some of the weakness that we saw in student loan originations, also home loan originations in this environment. But, again, the one year stock chart, though, look at that, still off about 40%, so certainly a challenging time here for SoFi.

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