
SoFi Technologies (SOFI) stock gained 15% in February. On Tuesday, it gave all that back after the San Francisco-based fintech announced it was issuing $750 million in convertible notes.
Investors generally don't like these types of announcements because it means their shares will potentially be diluted should the owner of the convertible notes convert them to SOFI stock. In addition, it could mean the company feels it’s undercapitalized right now.