Financial services providers benefit from rising interest rates because of the positive correlation of their revenues with interest rates. Sofi Technologies, Marathon Digital, and BitNile are not well-equipped to take advantage of the current rate environment. They should be avoided because of their exposure to risky assets. Continue reading...
shutterstock.com - StockNews The stock market has been under pressure. Inflation has remained at a multi-decade high despite the Fed's stance.
August's consumer price index was 8.3% higher than the same month a year ago. The Fed hiked the interest rate for the third time in a row last month because of inflation.
Financial companies have been aided by the rising rate environment. Although the rising interest rate environment benefits financial services companies, the collapse of risky assets, such ascryptocurrencies, has been a major blow to many of them.
It could be a good idea to avoid fundamentally weak financial service stocks.
Sofi Technologies is a company.
The company is called SOFI. The lending, financial services, and technology platform segments are used. Student loans and personal loans are offered by the company.
Cash management and investment services are provided by the financial services section. The benefits of Galileo are offered by its technology platform.
SOFI's non-interest expense increased by 15.5% for the second quarter. The company had total liabilities of $7.16 billion for the quarter ended June 30, 2022. The company had a net loss and a loss per share.
SOFI's loss per share is expected to widen in the current quarter. The stock has declined in value over the past year.
SOFI's weak fundamentals are reflected in its ratings. A Strong Sell is what the stock has in our rating system. The POWR Ratings are calculated using 118 different factors.
It received an F for stability and quality and a D for growth and value. It is a member of the Financial Services (Enterprise) industry. Click here if you would like to see the other ratings.
Marathon Digital holds the rights to the name Marathon.
MARA operates as a digital asset generator in the U.S., and is focused on mining Cryptocurrencies in the Blockchain.
MARA had revenues of $24.93 million for the second quarter of the year. It had an operating loss of $178.21 million last year. The company's net loss more than doubled. Its loss per share increased by 65.1%.
MARA's loss per share is expected to widen in the current quarter. The revenue for the quarter that ended in September is expected to be less than a year ago.
The last trading session was the last time the stock fell.
The bleak outlook is reflected in MARA's POWR ratings. A Strong Sell is what it has in our rating system.
Growth, Value, Stability, Sentiment, and Quality are all F grades. Click here to view the rating of MARA.
BitNile is a holding company.
NILE designs, develops, manufactures, and sells power system solutions for the defense/aerospace, industrial, automotive, telecommunications, healthcare, medical/biopharmaceutical, and textile industries. Digital marketing services are provided by the company as well.
NILE and the company's representatives will be investigated by Kaskela Law on behalf of the company's investors to determine if they have issued false and misleading statements.
NILE's revenues were $17.37 million for the second quarter of the year. The company had a loss from operations of $23.72 million, compared to income from operations of $45.83 million in the same period last year. The company had a net profit of $42.21 million in the same period a year ago.
NILE's earnings per share are expected to remain negative. The stock has lost 92.3% of its value over the past year.
NILE has an overall F rating and a Strong Sell rating. It received an F grade for growth, stability, and quality.
NILE is the worst stock in the financial services industry. You can see the other ratings of NILE by clicking here.
SOFI shares were down by more than 2% on Tuesday. SOFI has declined since the beginning of the year while the S&P 500 has risen.
Dipanjan was interested in the stock market as a child. He obtained a masters degree in finance and accounting. Dipanjan is interested in reading and analyzing emerging trends in financial markets.
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The post investors shouldn't be buying financial services stocks appeared first on Stock News.
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