In the first week of November 2022, prominent fintech company SoFi Technologies Inc. will be releasing its earnings reports for the last quarter—that is Q3 2022. Along with the talks all over about the earning release, there are possibilities of SOFI stocks to witness a positive impact of the same.
However, there are two different perspectives which emerged following the regarding the possibility of earnings release on SOFI stock price. On the one hand SOFI bulls are expecting the stock prices to witness a rally following the release while analysts are not sure about it, rather estimate somewhat pessimistic values.
Investors Think SOFI Stock to Perform Like Last Quarter
Investors believe the SOFI stock price might show the similar movement as it did during the earning release of Q2 2022. In the first week of August 2022, SoFi Technologies released its earnings for the second quarter of this year. Around the earnings release, SOFI stock saw a rise in trading price—it jumped from 6.41 USD on August 2nd to 8.23 on August 3rd.
SoFi investors are optimistic for the stock price to show a similar movement again but the analysts have shown a relatively pessimistic perception towards it. For instance, in a report Eddie Pan from InvestorPlace predicted the revenue of SoFi Technologies to stay around 392.76 million USD while the earnings per share (EPS) to be negative 10 cents (-$0.10).
Given the revenue of the company for last year, the current prediction is still 56% while EPS also shows the growth, but not in a positive term. The estimated EPS of negative 10 cents is double from the negative 5 cents EPS from last year’s Q3.
Analysts Stating Two Possibilities around SOFI Stock
Analysts have two viewpoints towards the stock price after the earnings release. First is there is no surety of SOFI stock price to rally even after the releasing of the earnings report. While the second possibility is that even if the stock price goes higher, it might not stay bullish for long due to multiple factors to bring it down, worse, they can bring it down below the current level.
Several stats might also prove the claims of analysts against the SOFI stock rally. For instance, the drop in SoFi Technologies’ short interest has witnessed a drop since July—from 130.4 million shares to 96.6 million shares.
While the other factors include the distress around the interest rate hike of the Federal Reserves which resulted in many stocks to retreat. This would still continue given the issue of inflation remains unsolved yet and so the Fed is expected to take the same road to curb the soaring inflation resulting in a bad impact on stock price.
Currently the SoFi Technologies (SOFI) stock is trading at 5.66 USD with a jump of 9.48 from yesterday. The price is high by 11.42% within the last month while it’s about 71.64 lower from last year.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/10/26/investors-and-analysts-holding-different-views-for-sofi-stock-following-earnings-release/