SoFi, Sezzle, and Affirm Shares Skyrocket, What You Need To Know

What Happened?

A number of stocks jumped in the afternoon session after the Trump administration announced a new peace deal that would lead to the reopening of the Strait of Hormuz. 

Personal loan companies borrow at wholesale rates and lend at retail rates; the spread is where earnings are made. With the 10-year yield falling to its lowest level since mid-May, the cost of funding loan books decreases. The delay of any expected Fed rate hike to December extends the window for profitable origination without rising funding cost pressure. 

On the credit quality side, lower petrol prices reduce the financial stress on households, the most common trigger for delinquency. A borrower spending less at the pump each week is statistically a better credit risk than one squeezed by elevated energy costs.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Personal Loan company SoFi (NASDAQ:SOFI) jumped 4.5%. Is now the time to buy SoFi? Access our full analysis report here, it’s free.
• Personal Loan company Sezzle (NASDAQ:SEZL) jumped 10.1%. Is now the time to buy Sezzle? Access our full analysis report here, it’s free.
• Personal Loan company Affirm (NASDAQ:AFRM) jumped 10.6%. Is now the time to buy Affirm? Access our full analysis report here, it’s free.

Zooming In On Affirm (AFRM)

Affirm’s shares are extremely volatile and have had 47 moves greater than 5% over the last year. But moves this big are rare even for Affirm and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 20 days ago when the stock gained 5.9% on the news that the company announced the integration of its 'buy now, pay later' payment options into Google Pay, a move complemented by several positive analyst actions. 

This integration allows Affirm's payment choices to appear within Google Search and its Gemini app. The news was supported by upbeat analyst sentiment, with Compass Point, Mizuho, and Evercore ISI all increasing their price targets for the company. However, not all commentary was positive. BTIG reiterated a Neutral rating, pointing to mixed signals in credit trends. While the firm noted that some early-stage delinquencies, or late payments, declined, it expressed concern about the delinquency rate in one of its recent loan groups being at the higher end of historical levels.

Affirm is down 1.5% since the beginning of the year, and at $72.93 per share, it is trading 20.9% below its 52-week high of $92.18 from September 2025. Despite the year-to-date decline, investors who bought $1,000 worth of Affirm’s shares 5 years ago would now be looking at an investment worth $1,084.

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