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SOFI Stock: Why SoFi is up nearly 20% today


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Financial technology (fintech) stocks stage a massive rally in Friday’s midday session. The rally was strong enough to reverse some of the most recent losses suffered by the sector. One of the strongest stocks in this rally is SoFi Technologies (NASDAQ:SOFI). SOFI stock is up 18% today as of this writing.

Keep in mind though that SOFI stock has been on a crushing downtrend for a few weeks now. SOFI has lost nearly 57% of its value since the start of the year. There were many times when I thought the downtrend was overdone.

One of the first things you learn in technical analysis is to never go against the grain. SOFI shares have been a sore spot in many investors’ portfolios. However, the question is whether or not this is a dead cat bounce.

Whether we will see a lower on the stock is hard to say. However fundamentally in the long term, the company is on very solid footing. Many analysts actually rank SOFI shares higher than their competitors. For example, Oppenheimer Analyst Dominick Gabriele wrote: “SOFI is more fee driven today and their original loans are very beneficial for both students and individuals. […] We focus less on credit for SOFI compared to other lenders. »

Mizuho analyst Dan Dolev felt the same way. Most of SOFI’s leading metrics are up as the company recently raised its guidance. The company expects second-quarter net revenue to be between $330 million and $340 million. The rise of personal loans from SoFi should help in this regard.

Given the company’s continued growth, I still have great confidence in SOFI’s stock. There is always the possibility of a decline in stock prices. Despite this risk, as a long-term growth play in the fintech sector, SoFi’s story still seems intact. I hope for a rebound by 2023.

As of the date of publication, Joseph Nograles held a long position in SOFI stock. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

Joseph Nograles is a part-time freelance writer focused on the financial industry. He has worked in a wide variety of industries, from technology to consulting with one of the “big four”. He has always enjoyed analyzing companies and has been a CFA charter holder for almost a decade now.

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