✅ SoFI Stock Closes Up More Than 12% After Debut On Nasdaq
In our first digest today, great news for those of you who want to own SoFi shares. SoFI is now publicly listed on the Nasdaq. The company’s public debut has been long-awaited, and what a debut it was with the stock closing up more than 12% to $22.65. According to an article by CNBC, SoFi went public after it merged with Social Capital Hedosophia Corp V. To get a better context on this acquisition, Social Capital is a special purpose acquisition company known as a SPAC. SPAC companies raise money through a shell company to buy an existing firm, they have become very popular in the past year. This particular SPAC is run by venture capital investors, widely known as the SPAC king, Chamath Palihapitiya. The interesting thing is, the shares were previously listed under the ticker IPOE for Palihapitiya’s SPAC. Shares of Palihapitiya’s venture closed at $20.15 recently, up more than 62% year to date. As some of you may recall, SoFi was founded in 2011 with a focus on student loan refinancing for millennials. Nowadays, it offers stock and cryptocurrency trading, personal and mortgage loans, as well as wealth management services. Recently, SoFi CEO Anthony Noto shared some insights about the company on CNBC’s TechCheck. He says SoFi is a one-stop shop to do all your financial service needs on one platform. Furthermore, he acknowledged that many people talked about broadening their suite of products but so far, only SoFi has done it on one mobile platform.
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✅ JPMorgan To Acquire Robo-adviser Nutmeg.
Our next digest goes in on the details of a very interesting acquisition made by one of the world’s most prominent banks. To be more specific, JPMorgan Chase is to acquire robo-adviser Nutmeg for an undisclosed amount. The announcement was made on June 17, although the acquisition is still subject to regulatory approval. Nutmeg is set to ‘complement’ the company’s new digital bank, which is planned to launch in the UK later this year. Sanoke Viswanathan, CEO of international consumer growth initiatives at JPMorgan Chase shared his thoughts on the acquisition. He says that they are building Chase in the UK from scratch using the very latest technology. Furthermore, they are putting the customer’s experience at the heart of their offerings, principles that Nutmeg shares with the bank. Moreover, Neil Alexander, CEO of Nutmeg, added that their customers can expect the same level of transparency, convenience, and service after the acquisition. Currently, Nutmeg has 3.5 billion GBP in assets but has yet to make a profit since its inception. Its most recent accounts showed the firm actually made a loss of 21.2 million GBP, an increase on the 18.4 million GBP loss reported for 2018. The good news for the firm is that it has seen revenue growth of 66 percent as it moves closer to profitability. In November, Nutmeg already partnered with JPMorgan Asset Management to launch a range of exchange-traded funds for Nutmeg’s customers.
