SoFi Technology (SOFI) stock has become a fallen angel despite its strong growth metrics and positioning at the intersection of finance and technology. Although it has risen by over 75% from its lowest point in 2023, it remains 74% below the highest point in 2021 as fintech stocks surged.
A broken stock is not the same as a broken company.
SoFi Technologies is experiencing significant member growth, doubling its member base in the last two years. The fintech raised its forecast for 2024 in both EBITDA and net revenues, showing successful growth plans. SoFi Technologies is undervalued and has the potential to rerate to a higher sales multiple, presenting a strong investment opportunity.
In recent years, SoFi's personal lending activity has picked up in a major way. In an adverse economic scenario, SoFi's losses could rise as borrowers stop making payments.
SoFi's stock has declined due to valuation, not business performance. The company could grow for many years on three key catalysts.
The banking disruptor just reported its second-quarter results, and here's what investors need to know.
SoFi's lending segment is slowing, and rising net charge-offs could weigh on its loan book. Its financial services and technology platform segments are becoming more significant to the business.
SoFi Technologies (NASDAQ: SOFI ) can't catch a break. After the fintech doubled in 2023, SOFI stock lost a third of its value so far in 2024.
Surpassing market estimates with its most recent earnings report, fintech company SoFi Technologies (NASDAQ: SOFI ) saw a steep 10% decline last week. Despite trading 74% below its peak, SoFi continues to showcase strong financial health, though the market appears to continue to focus on the company's headwinds.
SoFi's growth is slowing, but it's still gaining customers at a rapid pace. The business appears to be on a path of reporting consistent net income.
SoFi is following Robinhood into the subscription market.
SoFi Technologies (NASDAQ: SOFI) made its public debut on June 1, 2021 through a merger with a special purpose acquisition company (SPAC), Social Capital Hedsophia Holding Corp.