The recent FedEx warning spurring recession fears and causing a broad sell-off in fintech stocks has caused the shares of financial services company Sofi Technologies to plummet more than 60 percent in price year-to-date. Is it a good idea to buy the stock now or wait for a better time to invest? Find out more by reading.
shutterstock.com - StockNews The company operates through three segments: lending, technology platform, and financial services. Galileo is a technology platform that provides services to financial and non-financial institutions.
President Joe Biden announced a new student loan forgiveness program in August of 2022. The loan repayment pause that has been in place for more than two years is expected to be ended by Biden.
Millions of borrowers will want to refinance their student loans as a result of the recent announcement.
SOFI's disappointing financials are a concern for investors. The company had a net loss and a loss per share for the second quarter. Its total liabilities were $7.16 billion as of June 30, 2022, compared to $4.48 billion as of December 31, 2011.
On August 8, SoftBank Group Corp revealed plans to sell some or all of its stake in SOFI. SFTBY reduced its stake by half in August. The conglomerate has 45.42 million shares.
A recent warning from FedEx is causing a big sell-off in fintech stocks. SOFI has declined in price by 61.4% over the course of the year. The stock hit a high of $24.65 on November 11, 2021.
I think this could affect SOFI's performance.
The financials are getting worse.
SOFI's non-interest expense increased in the second quarter of the fiscal year. It lost 95.72 million before income taxes. The company had a net loss and a loss per share.
SOFI's total liabilities were $7.16 billion as of June 30, 2022. Cash outflows from operating and investing activities came in at over $2 billion for the first half of the year.
There is a leak of growth prospects.
Revenues are expected to increase by 41.4% in the third quarter of the fiscal year. The company is expected to report a loss per share for the current quarter. The company has missed the estimates in three of the last four quarters.
The company's loss per share is expected to come in at $0.32 and $0.10 for the next two years.
It's low profitability.
SOFI has a negative net income margin compared to the industry average. Its trailing-12-month ROCE and ROTA were negative, compared to the industry average of positive. The stock's trailing-12-month asset turnover ratio is lower than the industry average.
POWR ratings reflect bad news.
SOFI has an overall rating of F and a Strong Sell. The POWR Ratings are calculated using 118 different factors.
SOFI received an F for stability. The Stability grade is justified by the stock's................ The stock has a...... It has an F grade for Quality, which is in line with its profitability metrics.
SOFI has been ranked in the top 10 of 106 stocks.
We have given SOFI grades for sentiment, growth, value, and momentum. You can get all the ratings here.
The bottom line.
SOFI is trading more than 75% below its 52 week high after being beaten down in the market turbulence. Analysts are bearish on the company's earnings growth prospects. The stock is currently trading below its 50-day and 200 day moving averages.
SOFI is still expected to see declining growth in the near term despite the announcement of an end to the student loan repayment pause. We don't think the stock is a good idea right now.
How does So Fi stack up against its peers?
SOFI has a POWR rating of F.
SOFI shares fell in pre market trading. SOFI has declined since the beginning of the year, while the S&P 500 has risen.
Her interest in the stock market led to her becoming a financial journalist. She looks to help retail investors understand the underlying factors before they make investment decisions.
There is more.
The post asked if you should buy sofi stock now or wait.
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