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It’s been a tough after-hours market on Monday for two fintech businesses.
SoFi Technologies Inc SOFI shares are down after hours in reaction to the filing by SoftBank Group Corp. on Monday with the U.S. Securities and Exchange Commission.
According to a Bloomberg report, SoftBank sold about 5.4 million SoFi shares at a weighted average price of $7.99 on Aug. 5; an additional 6.7 million shares, at an average price of $8.17, on Monday. A subsidiary of SoftBank owned 83.2 million shares of SoFi as of June 30, according to the filing.
SoftBank is selling as part of a “sweeping effort at the Japanese conglomerate to reduce costs and stem losses in the valuation of its technology-focused Vision Fund investment portfolio.”
SoFi shares have declined more than 50% this year from a 52-week high of $24.65 to a current share price of $7.98 at market close Monday. SoFi was founded in 2011 as a financial services company.
Upstart Holdings Inc UPST shares are falling after-hours, currently down 14.50% at $32.37.
Upstart, an artificial intelligence-based lending company, just reported its second-quarter earnings. Though revenue was $228 million, up 18% year-over-year, it still came in below a Street estimate of $241.6 million. Reported earnings per share of 1 cent in the second quarter were below the Street estimate of 10 cents.
The company repurchased 3.5 million shares of UPST totaling $125 million in the second quarter.
“This quarter’s results are disappointing and reflect a difficult macroeconomic environment that led to funding constraints in our marketplace,” Upstart CEO Dave Girouard said. “In response, we’re taking the necessary actions to build a more resilient and committed funding model over time.
See Also: Upstart Holdings Q2 Earnings Recap: Revenue And EPS Miss, CEO Calls Quarter ‘Disappointing’
Photo: Golden Dayz via Shutterstock
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Image and article originally from www.benzinga.com. Read the original article here.