SoFi Technologies (NASDAQ:SOFI) stock has had a wild year.
The member-focused financial technology platform offers a comprehensive range of digital financial services to over 6.2 million members. The company aims to empower individuals to achieve financial independence by providing access to tools and resources in one app.
SoFi excels in three segments: Lending, Financial Services (offering various products), and Technology Platform, providing an integrated fintech stack.
SoFi operates SoFi Bank, N.A., and is a bank holding company under Federal Reserve regulation. It holds naming rights for SoFi Stadium, home to the Los Angeles Chargers and Rams.
While SOFI stock has been volatile in 2023, there are several reasons investors should take a longer-term view. It’s one of my top speculative picks among unprofitable tech companies right now, for a few key reasons.
SoFi Stock Stands Strong After Whirlwinds
Today’s equity traders seem to have short memories. Despite concerns about regional banks earlier this year, SoFi Technologies CEO Anthony Noto confidently invested in SOFI stock, a profitable decision.
SoFi offers up to $2 million in FDIC insurance for eligible accounts, emphasizing its legitimacy as a bank.
SoFi Technologies faces multiple challenges in 2023, including interest rate hikes by the U.S. Federal Reserve. However, the company is thriving. In Q2, it achieved a 37% year-over-year growth in GAAP net revenue, a 44% increase in total member count, and a 26% growth in deposits.
As SoFi continues to ramp up its student loan refinancing business throughout the remainder of the year, I think the company’s revenue and profitability growth could turn the corner.
If SoFi can prove itself to become a profitable name in the fintech world sooner than expected (say, early next year), this is a stock that could absolutely skyrocket from current levels.
Q3 Earnings Forecast
Analysts appear to echo such a view. Seaport Res Ptn analysts raised their Q3 2023 EPS projection for SoFi Technologies to ($0.07) from ($0.09). They also provided estimates for Q4 2023 earnings at ($0.02), FY2023 earnings at ($0.20), and FY2024 earnings at ($0.02).
SoFi Technologies reported Q2 earnings of ($0.06) per share, exceeding expectations by $0.01, with a 37.3% revenue increase year-over-year.
Several analysts provided their insights on SoFi Technologies stock. BTIG Research lowered their price target to $13. JPMorgan Chase (NYSE:JPM) increased their target to $10, rating the stock as neutral.
Oppenheimer downgraded it from outperform to market perform. Piper Sandler raised their target to $9, also neutral. Finally, Wedbush reiterated an underperform rating with a $3 target. The consensus rating is hold with a $9.16 target.
Recent SOFI Price Movements
SOFI stock has shown a robust chart pattern lately, trading above the moving averages, indicating buyer strength. Bears initially waited for a dip but eventually covered their positions as buyers continued to push towards $10.
SoFi Technologies Inc. stock traded at $8.79 with a 1.50% intraday rise and a market cap of $8.352 billion. Bulls dominate the trading action with this stock right now, maintaining gains near supply zones, forming higher highs.
Analysts target $10.32 and $16.00, indicating further bullish sentiment among sophisticated investors on Wall Street and elsewhere.
On the weekly chart, SOFI price is bullish, trading between $8 and $12 with high volumes. Buyers aim to break the $10 mark, with RSI near 60, indicating positivity. MACD shows potential for a bullish crossover.
Have Strong Faith in SOFI
SoFi Technologies, a resilient bank, survived the regional bank collapse. It’s well-prepared for potential higher interest rates and remains a reliable choice for growth and stability in uncertain economic conditions.
Keep your SOFI shares for potentially strong results and performance. It’s a stock worth considering for long-term bullish investors due to its growth potential and positive earnings outlook.
— Chris MacDonald
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Source: Investor Place