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- SoFi Technologies Inc. ( NASDAQ: SOFI ) stock has struggled, but there are signs of a potential recovery.
- Not all analysts have faith, but is now the time for investors to hop on board?
SoFi Technologies Inc. ( NASDAQ: SOFI ) offers investors exposure to both the fintech and artificial intelligence (AI) markets. While the stock has struggled since going public, the share price has seen a double-digit percentage pop this month. Shareholders and would-be investors must be wondering where the stock could be headed. Let's have a look at what Wall Street expects.
Why Invest in SoFi Technologies?
A fintech and AI stock pick.
Since going public in 2021, SoFi Technologies stock is down more than 64%. Initially, the company provided affordable loans to those looking to fund their education. Since then, it has expanded to become an online personal finance company and bank, and it is popular with students and young professionals. The stock retreated as SoFi expanded into banking, but it has popped more than 15% in the past month. It could soar if the pending quarterly report beats expectations. That leaves investors to ponder whether this is the start of a recovery and a great opportunity to get in before it soars further. How much upside does Wall Street anticipate?
SoFi Technologies, the Company
An online personal finance company and bank.
The company provides various financial services in the United States, Latin America, and Canada. It offers lending and financial services and products that allow its members to borrow, save, spend, invest, and protect money. It offers personal loans, student loans, home loans, and related services.
The company also operates Galileo, a technology platform that offers services to financial and non-financial institutions, and Technisys, a cloud-native digital and core banking platform with financial services customers. Its offerings include:
- SoFi Money, which offers checking and savings accounts, debit cards, and cash management products
- SoFi Invest, a mobile-first investment platform that provides access to trading and advisory solutions, such as investing and robo-advisory
- SoFi Credit Card, which provides cash back on every purchase
- Sofi Relay, a personal finance management product that allows users to track all their financial accounts, comprising credit score and spending behaviors
- SoFi Protect, which offers insurance products
- SoFi Travel, an application that manages travel search and booking experience
- SoFi At Work that provides financial benefits to employees, including student loan payments made on their employees' behalf
- Lantern Credit, a financial services marketplace platform for seeking alternative products and provide product comparisons
- And other lending as a service that offers pre-qualified borrower referrals and sells loans to a third-party partner.
SoFi Technologies is based in San Francisco. It was founded in 2011 by four students who met at the Stanford Graduate School of Business, and it went public on June 1, 2021. Competitors include Ally Financial Inc. ( NYSE: ALLY ), LendingClub Corp. ( NYSE: LC ), and LendingTree Inc. ( NASDAQ: TREE ).
SoFi Technologies investors will be watching how AI contributes to the earnings report due July 30. The company recently appointed a new general counsel . Last year, it was named one of the world's most innovative companies by Fast Company and one of the world's top fintech companies by CNBC. In addition, SoFi sued the Biden administration to block the pause on student loan repayment, saying it was hurting its business. However, it later dropped the suit.
Ten Reasons to Buy Sofi Technologies Stock Now
SoFi Technologies, the Stock
The share price is about 17% lower than a year ago, despite the recent bounce. The Nasdaq is up about 31% year over year. Note that the $8.43 consensus price target is less than the 52-week high above $12.
Out of 16 analysts who cover the stock, just four recommend buying shares. Needham recently reiterated its Buy rating, while Barclays and Keefe, Bruyette & Woods maintained Neutral ratings. About 41% of shares are held by institutional investors, including at Vanguard, BlackRock, and Silver Lake. Note that CEO Anthony Noto bought almost 800,000 shares in May and June.
Wall Street expectations for where the stock goes in the next 52 weeks vary. While at least one analyst anticipates notable downside, the highest price target indicates an even bigger rise in the share price. Moreover, the consensus projection suggests there is still room to run.
| Low target | $4.00 | −47.4% |
| Mean target | $8.43 | 10.9% |
| High target | $12.00 | 57.9% |
Headwinds for SoFi Technologies include concerns about macroeconomic conditions, as well as the company's revenue trend valuation. Such concerns may be responsible for the caution of the analysts when it comes to their ratings. However, plenty of them see strong growth prospects, and there is the question of how much of a boost SoFi Technologies could see due to the enthusiasm for AI. The second-quarter report will soon tell the story.
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