$SOFI

In the AI driven sell first, ask questions later wave, financial ETFs getting sold hard matters for SoFi through two different channels:
As you know, Financials (XLF) are getting sold because of AI. XLF is usually dominated by traditional banks like JPMorgan and Bank of America. If the market is selling the sector on the thesis that AI will kill old school banking, SOFI may not be the victim of that thesis, it could be the winner. Because SoFi, with its fintech identity, is a hybrid structure sitting right in the middle of this separation.
If SOFI is viewed as a tech focused disruptor that uses AI in its operations (Galileo, Technisys), some of the money coming out of traditional banks may eventually want to park here.
On the other hand, algorithmic fund flows often operate with a sell the sector logic. So when there are outflows from the ETF, the good gets punished along with the bad, and SOFI can be penalized on financial multiples while its tech muscle gets ignored.
If the market is selling Old Economy (banks) and buying New Economy (AI), SOFI should, on paper, stay on the New Economy side. If it’s getting unfairly beaten up because of ETF selling, that can be a technical opportunity to build cost basis.
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It’s important to understand the current situation well.
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Please understand this: there hasn’t been a period like this in the past. With AI, everything can change very fast. That’s why big players have started taking shelter in old value stocks. In the near future, how the market prices SOFI may become more decisive