Why did Sofi Technologies stock drop today?
Feb 22, 2022 · SoFi plans to purchase Technisys for $1.1 billion in an all-stock transaction. Technisys develops core banking systems, which help banks carry out their daily operations, whether that is ...
Is Sofi stock a buy on the dip?
Aug 17, 2021 · Digital finance company SoFi Technologies ( SOFI 3.93% ) dropped more than 10% the day after releasing its earnings for the second quarter of 2021. The company disappointed investors with a large...
Is Sofi stock a $7 growth-at-a-discount opportunity?
Dec 01, 2021 · The stock popped on earnings, but it failed right at the range resistance level we were watching and has now faded considerably. Since that earnings rally, shares have fallen in eight out of ten...
Why does Sofi need more members on the platform?
Feb 22, 2022 · SoFi Technologies (NASDAQ: SOFI) is falling 10% in late session trading after the company. Now Read: SoFi: Down 70% - In The Speculative Buy Zone.
Why is SoFi stock down so much?
Summary. SoFi, the innovative personal finance company with remarkable growth potential, has gotten pummeled in the recent selloff. The risk-off environment caused shares to decline by more than 70% from their recent high.Mar 22, 2022
Is SoFi a good stock to buy?
SoFi Technologies is still in the growth stage and there is a lot to look forward to. If the company continues to grow at the current rate, it will be able to impress investors with solid numbers and massive growth. At $10, SOFI stock looks undervalued and is a good chance to take a position.Mar 7, 2022
What is the future of SoFi stock?
As a national bank, SoFi will have a range of new growth opportunities. But it's not yet clear how much this has already been reflected in its share price. Wall Street experts currently believe SoFi will see a 40% or more increase in revenue growth through 2023.Mar 15, 2022
Is SoFi undervalued?
Summary. SoFi comes across as a relatively undervalued high-growth stock. However, readers and investors should not underestimate and overlook the adverse effects of its lofty stock-based compensation expenses. Risk averse investors may want to avoid the stock for the time being.Mar 7, 2022
What is SoFi stock price target?
Stock Price TargetsHigh$22.00Median$13.00Low$10.00Average$14.35Current Price$7.13
Is SoFi growing?
The best news for SoFi bulls was the company's forecast that adjusted revenue would grow 55% in 2022. Management expects net revenue for the year of $1.57 billion — $110 million above the FactSet consensus. In the first quarter of 2022, SoFi expects revenue to grow in a range — the midpoint of which is 31%.Mar 3, 2022
Is SoFi A Buy Sell or Hold?
SoFi Technologies has received a consensus rating of Buy. The company's average rating score is 2.54, and is based on 7 buy ratings, 6 hold ratings, and no sell ratings.
Is SoFi stock overvalued?
Growth stocks will remain under pressure because of the geopolitical tensions and the interest rate hikes slated for the year. Therefore, SOFI stock becomes a risky prospect. It is especially true after the latest earnings report. Shares are now firmly overvalued in the current environment.Mar 4, 2022
Is SoFi being shorted?
In Q1 of 2022, SOFI received its bank charter and acquired Technisys, which will both play critical roles in SOFI's future. Despite receiving the bank charter, SOFI became one of the most shorted stocks as 21.4% of its shares were shorted as of 2/28/22.Mar 22, 2022
Why is SoFi Technologies a good investment?
SoFi's price reflects strong value for growth investors Because of the undeservedly steep drop in pricing that shares of SoFi went through in the last few months, SoFi's platform growth is cheap, especially when considering the recently completed Technisys acquisition that is adding to topline growth.Mar 17, 2022
What does SoFi do as a company?
and commonly known as SoFi) is an American online personal finance company. Based in San Francisco, SoFi provides financial products including student and auto loan refinancing, mortgages, personal loans, credit card, investing, and banking through both mobile app and desktop interfaces.
SoFi's stock is dropping after its latest earnings report. However, there might be more to this story, and investors shouldn't rush to judgment
Justin loves covering stocks across all industries, but his heart is in high-growth technology. He's been a student of the market for more than a decade. Stocks are his second love to his wife and kids, which is how he spends his free time.
1. SoFi's user base is rapidly growing
SoFi started as a student loan lending business but has evolved into a finance "super-app" under current CEO Anthony Noto. Users of SoFi's app can manage and transfer cash, invest, trade crypto, obtain a credit card, and take out a variety of loans. Its vision is to bring all of a consumer's personal finance needs under one roof.
2. Nonrecurring costs hide improving financials
One of the major eyesores on the earnings headline was that SoFi reported a loss of $0.48 per share, a massive $0.42 miss from what analysts expected. On the surface, this would suggest that SoFi is consistently losing a ton of money.
3. Student loan headwinds are temporary
Investors were concerned that management failed to raise guidance for the full year, and Noto declared that the reason for this was the ongoing federal policy on student loans. The government has frozen most student loans from generating interest or being paid on as part of pandemic relief.
Is SoFi a buy?
Does that mean SoFi is a buy? The company is trading at a market cap of $12 billion, and based on its full-year guidance of $980 million, trades at a price-to-sales ratio of 12. This seems like a reasonable valuation considering the massive addressable personal finance market and the company's strong membership growth.
Why SOFI stock is falling
SOFI stock is falling amid concerns about its valuations. The stock was looking overvalued compared to other fintech names. As I noted previously, SOFI's valuation multiples looked out of sync with other recently listed fintech names.
What happened to other Palihapitiya SPACs?
The last few months haven’t been good for Palihapitiya. Clover Health, which merged with one of his SPACs, is still trading below $10 after it was accused by Hindenburg Research of fraud. Opendoor Technologies, the home-flipping platform that went public with a Palihapitiya SPAC, is down 58 percent from the peak.
SOFI stock performance
Looking at the other Palihapitiya SPACs, IPOE actually looks better placed. It's down around 26 percent from its pre-merger highs. Social Capital Hedosophia Holdings IV (IPOD) and Social Capital Hedosophia Holdings VI (IPOF), which are yet to merge, are down 42 percent and 43 percent from their 52-week highs.
Will SOFI stock recover?
So far, only Oppenheimer has initiated coverage on SOFI with a buy rating and a $25 target price. The outlook for the fintech industry is bullish and SOFI is present across several verticals. It offers an array of services including student loans, mortgages, insurance, and credit cards.
