SOFI
Ouch! The convertible note offering, together with a 21.7 million share dilution to retire some of the 2026 notes, broke the triangle setup. Note that EPS is not impacted by the 21.7 million share dilution, as it is calculated based on fully diluted shares, which already account for the 2026 notes. There could be further impact on the share price once we see the terms of the convertible notes and analysts' reaction to this news.
Unlike previous sell-offs, this one has a material impact. Until I know more about the deal, I will not be adding to the position.
In terms of technicals, if $7 fails to hold, there is a possibility that the price could see a quick trip down to the $6.45 to $6 area due to the volume gap.