Future Investing
Rate Cuts, SOFI Stock & META CONNECT 2025 | Tech Frenzy
9/18/2025, 1:19:59 AM
Economic Summary
- The Fed cut 25 bps and signaled roughly 50 bps more this year, which should lower risk-free rates and reduce short-term funding costs for banks and fintechs (e.g., SOFI), improving net interest margins.
- Lower interest rates compress new loan coupon rates, increasing demand from insurers and pension funds for existing higher-coupon loans on platforms like SOFI, boosting secondary market value.
- Falling yields on money-market and treasury products will likely push sidelined cash into equities and higher-yielding assets, supporting multiples and corporate investment (beneficial to capex-heavy firms like NVDA).
Bullish
- Fed rate cuts lower funding costs and boost net interest margins for banks and fintechs like SOFI.
- Lower safe-yield treasuries push money into equities and higher-risk assets, expanding multiples.
- Long-term AI demand fuels capex and software spend, benefiting NVIDIA and cloud/AI infrastructure suppliers.
- Meta's glasses, Horizon Engine, and AI features expand new product and platform monetization paths.
Bearish
- China urging domestic firms to avoid NVIDIA could cut near-term sales and growth for NVDA.
- Meta's live-demo glitches and bulky-looking hardware risk poor initial consumer adoption and reputational damage.
- Fintech margins pressured if deposit competition remains intense or if funding costs don't fall as expected.
Bullish tickers
SOFINVDAMETADLOHOOD
Bearish tickers
NVDAMETABMNR
SOFI
1 price targets
26
Bullish
Lower rates reduce funding costs and increase appetite from institutions for existing higher-coupon loans, benefiting loan valuations.
Bearish
Competition on deposit rates and potential margin pressure if funding dynamics shift unfavorably.
HOOD
Bullish
Benefits from easier funding and consumer movement toward higher-yield deposit offerings.
Bearish
Deposit competition and fintech margin pressure could limit profitability.
UPST
Bullish
Lower funding costs and stronger demand for loans may lift originations and investor appetite.
Bearish
Loan yield compression could hurt originator margins if volumes don't rise.
LC
Bullish
Easier funding and secondary demand for loans support platform economics.
Bearish
Competitive lending environment and rate sensitivity could constrain returns.
AFRM
Bullish
Lower borrowing costs could improve consumer spending and merchant adoption.
Bearish
BNPL valuation risks if consumer credit worsens or rate benefits don't flow through.
DLO
1 price targets
14.69
Bullish
Undervalued payments growth; re-rating potential if high topline growth continues.
Bearish
Payments and fintech valuation risks from stablecoin/regulatory worries and macro weakness.
NVDA
1 price targets
200
Bullish
Structural, long-term AI demand and capex intensity make NVDA a multi-year growth and profit compounding story.
Bearish
Geopolitical/China restrictions could cut near-term revenue and miss lofty expectations.
AAPL
Bullish
Ecosystem and hardware-software integration support monetization and accessory opportunities.
Bearish
High expectations baked into hardware growth and AR/VR competition risk.
GOOGL
Bullish
Strong AI and cloud positioning with durable advertising and search franchises.
Bearish
Ad market cyclicality and competition in AI/AR could pressure growth.
AMZN
Bullish
Lower borrowing costs and AI investments support AWS demand and margin expansion.
Bearish
High capex and thin margins in some businesses could be sensitive to rate changes.
META
Bullish
AI glasses, Horizon Engine, and content partnerships create new hardware and platform monetization avenues long-term.
Bearish
Product demo failures, bulky hardware, and slow consumer adoption could hurt early sales and sentiment.
PYPL
Bullish
Solid payments infrastructure and potential re-rating if growth stabilizes.
Bearish
Payments sector re-rating risks and stablecoin/regulatory concerns.
COIN
Bullish
Payments and crypto infrastructure tailwinds could resume if markets stabilize.
Bearish
Crypto volatility and regulatory risk can compress valuation.
BMNR
2 price targets
58.9854
Bullish
Recent strong inflows and community conviction drove rapid price moves.
Bearish
Highly speculative/volatile name; short-term momentum-driven risks.
People mentioned
Mark ZuckerbergJames CameronLisa SuDonald TrumpTom LeeDiploJohnny CirilloJack CoyneJack MancusoBozEvanAmitTannerChris PatelMatt Flo