Will Sofi stock suffer even more over the next few months?
· The student loan moratorium has rendered SOFI stock a loser of the late pandemic era. While shares rose throughout the first half of 2021, the months since have seen them fall from almost $23 per...
Will Sofi Technologies stock return after FQ1?
· 52wk Range. $4.82 - $24.95. Volume. 74,842,007. Avg Vol. 53,072,737. P/E (ttm) SoFi expects the acquisition to generate between $500 million and $800 million of additional revenue through 2025 ...
Is Sofi's revenue outlook for FY22 too high?
· 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...
Was Sofi’s 82% rally overdone?
20 hours ago · An upgrade from “neutral” to “overweight” and price target of $12 offers a 78% increase to today’s price of SOFI stock. This reflects the …
Why is SoFi stock dropping?
SoFi stock is making lows after the government extended the pause in student-loan repayments. The market is struggling on Thursday.
Is SoFi good stock to buy?
"SoFi has done an outstanding job achieving record financial results, member and product growth and consistent profitability, despite the negative impact of the extended student loan payment moratorium. And we will work diligently to continue that trend in 2022." said Noto.
Is SoFi overvalued?
It went public on June 1 at about $20 per share, and now it is trading at just over $6 per share. It is down 59% year to date. It had become overvalued and got caught up in the growth-stock correction that started last fall. Currently, SoFi's price-to-sales ratio is around 4, down from a high of 18 last year.
Who is buying SoFi stock?
He has served as CEO since 2018, before the company went public in June 2021 by merging with a special-purpose acquisition company, or SPAC. Noto, a former Twitter (TWTR) executive, last purchased SoFi stock on the open market in August 2021, when he paid $102,290 for 7,150 shares, an average price of $14.31 each.
Is SoFi a buy Zacks?
See rankings and related performance below. The VGM Score are a complementary set of indicators to use alongside the Zacks Rank....Momentum Scorecard. More Info.Zacks RankDefinitionAnnualized Return1Strong Buy25.08%2Buy18.56%3Hold10.15%4Sell5.79%2 more rows
What is a fair price for SoFi stock?
SoFi Technologies's fair value is $11.69.
What does SoFi do?
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.
How many shares of SoFi are there?
799.63MShare StatisticsAvg Vol (3 month) 357.58MShares Outstanding 5799.63MImplied Shares Outstanding 6799.63MFloat 8657.56M% Held by Insiders 121.17%7 more rows
Key Points
Technisys' cloud-based core-processing systems can support multiple financial products on one core.
NASDAQ: SOFI
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What happened
Shares of SoFi Technologies ( SOFI 2.18% ) had slipped nearly 10% as of 2:03 p.m. ET today after the company announced that it plans to acquire the core processing company Technisys.
So what
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 processing a deposit or loan transaction.
NASDAQ: SOFI
SoFi expects the acquisition to generate between $500 million and $800 million of additional revenue through 2025.
Now what
Moving SoFi products over to Technisys' core is a good idea, although SoFi didn't have to buy the company to use its products. However, the addition of Technisys will complement Galileo, a payments platform it acquired in 2020, and increase tech platform revenue greatly.
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Is Clover Health still trading?
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. Article continues below advertisement.
Is IPOE stock holding at higher levels?
However, the stock is facing resistance at higher levels and isn't holding at higher levels.
Is SOFI stock 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.
Is SOFI a good stock to buy?
While SOFI looks like a good stock to hold for the long term, the price wasn't right. Some of the other fintech names, like Affirm and Paysafe, seemed to offer better risk-reward tradeoffs.
Is SOFI a public company?
Social Finance or SoFi went public earlier this month through a merger with Chamath Palihapitiya’s Social Capital He dosophia Holdings V (IPOE). In a welcome break, the stock, which trades under the ticker “SOFI,” rose sharply on the merger date. Since then, it has looked weak. Why is SOFI stock falling and will it slump like other SPACs sponsored by Palihapitiya?
Key Points
Social Capital and other major shareholders made significant sales of SoFi stock in November.
What happened
SoFi Technologies ( NASDAQ:SOFI) plunged 14.4%, according to data provided by S&P Global Market Intelligence, after the company announced a secondary offering and a high-profile shareholder announced that it would be selling shares. This comes shortly after the fintech stock impressed with its third-quarter earnings report.
So what
SoFi stock went public in April via a special purpose acquisition company (SPAC) merger with a fund that was launched by venture investment firm Social Capital. Social Capital is a high-profile firm, led by former Facebook executive Chamath Palihapitiya.
Now what
Large investors selling is never a good sign, but it's important to keep this in perspective. Social Capital, for example, is still retaining 85% of its investment in SoFi. By all indications, these investors are taking an opportunity to realize their gains at high valuations. It's not indicative of poor performance on SoFi's part.
Sofi Stock Faces Heated Competition
- Investors are worried that giant fintechs like Block (NYSE:SQ) and PayPal Holdings (NYSE:PYPL) are facing a slowdown. As the Federal Reserve panics to contain rampant inflation, it will raise rates. Established banks will trillions in assets will earn income from wider interest rate spreads. Fintech firms will not. They need to build the customer b...
Opportunity
- SoFi’s unclear outlook is pressuring its shares. Investors with a time frame of at least five years may bet that this fintech will keep growing. The company has 400 institutional owners. Those investors believe that SoFi will emerge as a one stop shop for financial products that meet customer needs. Customers would view SoFi’s products as more comprehensive than Venmo, P…
valuation
- Chief Executive Officer Anthony Noto does not have an opinion on the near-term value of SoFi. Its trading range of below $13 and as high as $28.26 varies with what the market willingly pays for the stock. Noto will develop the business. The company must deliver a high return on invested capital and return on equity in the long run. Investors need to review those leading indicators. No…
Risks
- SoFi’s quarterly membership growth will vary. Combined with a lag between member growth and product uptake, investors need to wait for SoFi to report sales growth. Still, SOFI stock will likely benefit with around 1.4 or 1.5 product sales per member. As the user base grows, SoFi’s operating efficiency will improve. Its business model leverages user growth. The slowing economy in the q…
Your Takeaway
- SoFi’s downtrend will shake out impatient investors who sought to trade for a quick buck. Long-term investors may build on their position at favorably low prices. A few years from now, SOFI stock may reward the most loyal investors. On the date of publication, Chris Lau did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinion…