• Home
  • Cryptocurrencies
  • Stocks
  • Commodities
  • About
    • Code of Ethics
    • Risk Warning
    • Privacy Policy
  • Contact
rkdream

Type and hit Enter to search

  • Home
  • Cryptocurrencies
  • Stocks
  • Commodities
  • About
    • Code of Ethics
    • Risk Warning
    • Privacy Policy
  • Contact
StocksUS

SoFi Technologies Stock Price Forecast: More Gains Likely

Crispus Nyaga
August 3, 2022 3 Mins Read
14 Views
0 Comments

SoFi Technologies stock price has gone parabolic as investors cheered the strong quarterly results. The shares jumped by more than 25%, bringing the company’s market cap to over $7.36 billion. Still, the shares are about 67% below the highest level in November last year.

Why did SoFi shares crash?

SoFi Technologies is a leading fintech company that has operations in several important sectors of the economy. Its primary business is in consumer lending and student loans in particular. It also offers other services like stocks and cryptocurrencies trading, savings accounts, and insurance among other solutions. It recently received a banking charter.

Like other technology companies like Affirm, Shopify, and SquareSpace, the SoFi stock price has struggled in the past few months as investors worry about growth. In other words, companies that did extremely well during the pandemic have now come under pressure.

For SoFi, the situation was made worse by the moratorium of student loans in the US. As a result, the firm lost a substantial amount of income as most people kept off their loans. Progressives are also advocating for student loan cancellation.

SoFi Technologies share price has also dropped sharply because of the weak performance in the stock and cryptocurrencies industry. This performance has led to weak performance of its brokerage business. This is in line with the performance of companies like Robinhood and Coinbase.

Why did SoFi Technologies surge?

The SoFi stock price jumped sharply after the company published its Q2 results. The company said that its adjusted revenue rose by 50% from the same quarter in 2021. Its revenue was over $356 million. This was the eighth straight quarter of positive adjusted EBITDA. 

Further, the newly launched SoFi Bank hit over $2.5 billion in deposits. Lending revenue rose by 46% to $251 million while its financial services net revenue rose by 78% YoY to $30 million. Its technology platform revenue rose to $84 million. Most importantly, SoFi added over 450k new members, bringing the total users to over 4.3 million.

Banking is an important part of SoFi’s business story because it lowers the cost of funding since it can use customer deposts. In a statement, the company’s CEO said:

“In Q2 alone, the difference in our deposit cost of funding and warehouse cost of funding was approximately 100 basis points, and that delta will continue to grow in a rising rate environment.”

SoFi stock price forecast

The daily chart shows that the SoFi stock price has been in a strong bearish trend in the past few months. Recently, however, there have been signs of the decline bottoming. It has remained slightly above the ascending trendline shown in green.

SoFi Technologies stock went parabolic on Wednesday and reached a high of $8.15, which was the highest level since April 7th of this year. This was a notable price since it was the highest point on May 27th. It has also moved above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) moved above the neutral point.

Therefore, the stock will likely continue rising as investors focus on the ongoing recovery. If this happens, the next key level to watch will be at $12.46, which is along the 38.2% Fibonacci Retracement level. A drop below the support at $7 will invalidate the bullish view.

Related

Tags:

Affirm HoldingsSoFi TechnologiesSquareSpace

Share Article

Follow Me Written By

Crispus Nyaga

Crispus Nyaga is a financial analyst and trader with more than a decade in the industry. He specializes in financial assets like forex, commodities, indices, stocks, and cryptocurrencies. Crispus has been fortunate to work for well-known financial brands like SeekingAlpha, CoinJournal, Capital.com, FxStreet, iNvezz, Bankless Times, and DailyForex. Crispus is passionate about the financial market and is always willing to share his expertise with people worldwide. He has been featured in top publications like Forbes, Bloomberg, and MarketWatch. His goal is to help experienced and beginner investors find opportunities and maximize their potential.

Other Articles

Polygon price
Previous

Polygon price prediction: MATIC to continue outperforming its rivals

Next

Fastly Stock Price Has Plunged. Should You Buy This Dip?

Next
August 6, 2022

Fastly Stock Price Has Plunged. Should You Buy This Dip?

Previews
August 3, 2022

Polygon price prediction: MATIC to continue outperforming its rivals

Polygon price

No Comment! Be the first one.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

rkdream

rkdream is a fast-growing financial website covering the latest news and analysis on cryptocurrencies, stocks, and commodities.

Quick Links

  • About
  • Code of Ethics
  • Risk Warning
  • Privacy Policy

Categories

  • Cryptocurrencies
  • Stocks
  • Commodities

Follow Us

Twitter

© 2022, All Rights Reserved.

  • Cryptocurrencies
  • Stocks
  • Commodities
Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
View preferences
{title} {title} {title}