Important events
May 112022
SoFi’s early release…
Whoopsie, turns out SoFi has a bit of a PE problem… its earnings got released before they were meant to, and apparently its new neo-bank status isn’t working the wonders it could.- The stock dropped a sharp 18% on Tuesday before trading was halted for over three hours after “human error” caused the results to be reported before the bell instead of after, with shares ultimately closing down 12%. On the bright side, Q1 actually topped estimates with LPS of $0.14 on $322m in revenues.
- How’s the whole neo-bank thing going? SoFi was known as a personal finance app until earlier this year when it agreed to buyout a small community bank and got permission to operate as a banking subsidiary – investors wanted to see big improvements to the bottom line based on this new status, but alas, SoFi has troubles ahead.
- Current quarter forecasts missed estimates with calls for revenues of $340m at the top end. Dw tho, Mizuho analyst Dan Dolev is determined that things aren’t as bad as they seem given personal loans were up a promising 151% YoY. It may not be the best time to be in the loans biz (hey, rate hikes), but let’s see what SoFi can do.
Devon Divine / Unsplash
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Mar 022022
SoFi cashes in
Online personal finance company SoFi knows never to gift a wallet without some money in it, releasing a Q1 outlook that’s filled with $$$.Key points:
- The stock soared up to 30% in extended trading on Monday after the fintech company beat on both ends with a loss per share of $0.15 (down from $1.85 a year earlier) on revenues of $278.8m.
- Its membership numbers are flying. The platform added 523k new members during the quarter to take its total to 3.5m, up 87% from the start of the year and exceeding its own targets by 40%. SoFi released 906k new products (up 51% from last quarter), driving strong growth in the business.
- The disruptor company also hiked its FY2022 outlook, calling for revenues of around $1.57bn, representing y-o-y growth of 55%. SoFi CEO Anthony Noto said its 2021 success was because of “growing our brand awareness via our SoFi Stadium affiliation, the success of our integrated multi-media campaigns and the virality of the influencers with whom we partnered.”
Sumaid pal Singh Bakshi / Unsplash
Feb 232022
SoFi splashes the cash
Investors are here to remind SoFi that money doesn't grow on trees after the personal finance company goes on a spending spree.Key points:
- SoFi announced the $1.1bn acquisition of Technisys SA, a banking-software company that it’s snapping up in the hopes that it’ll help them keep up with digital innovation trends.
- That’s about 10% of SoFi’s entire market value, and investors are not happy with its spendthrift ways. SoFi has been on a roll recently – it closed its $22.3m acquisition of Golden Pacific Bancorp earlier this month, and in 2020 SoFi scooped up Galileo Financial Technologies for $1.2bn.
- Prices spiraled down 10% in Tuesday trading to hit their lowest closing price ever – the stock has spent the last four months on a losing streak that has wiped 60% off its value. Its earnings come out next week, so keep your eyes peeled to see if they’ve got the $$$ to ease investors' fears.
Sharon McCutcheon / Unsplash
Jan 212022
SoFi gets invited back to the meme stock party
SoFi’s latest license news earns it the stamp of approval from the online army, who give the stock another ride on the memestock rollercoaster.- The stock inflated 20% in Thursday intraday trading to hit a monthly high before closing up 9.41% – it’s now up nearly 25% since getting its banking license on Tuesday.
- Social media picked up the stock and ran with it after hearing that the online lender had gotten approval to acquire Golden Pacific Bancorp and become a real bank.
- It overtook GameStop as the most mentioned stock on subreddit WallStreetBets with mentions soaring 1,500% in 24 hours. It’s no stranger to the retail trading crowd, having seen parabolic gains in January 2021 – let’s see where it’ll end up this time.
$SOFI stock surged when the company announced its long-anticipated bank charter. Has the share price climbed enough, or could this be just the beginning of a bullish wave? #SoFi #StocksToBuy
@TheStreet
Jan 192022
SoFi, So Good
Burgeoning fintech brand SoFi finally passes its learners permit and gets its bank licence, so its stock hits the road at full speed.- Shares shot up over 12% in Tuesday morning trading, a welcome reprieve for investors after spending all but two sessions this year in the red.
- It passed its final regulatory roadblock to becoming an official bank, which it’s been trying to get for three years. It plans to buy Golden Pacific Bancorp to operate its SoFi Bank subsidiary – a deal that’s due to close in February.
- There is one caveat though. It only got approval from the Fed and the OCC on the grounds that it won’t be touching any crypto products.
Illustration by TradingView