SOFI Technologies Inc, (NASDAQ:SOFI) provides financial services and offers home loans, personal loans, in-school loans and a credit card. Late last week the company filed a suit in which it said “the eighth extension of the forbearance “to alleviate ‘uncertainty’ for borrowers during ongoing litigation over the debt-cancellation program” is “plainly not a valid basis” under the HEROES Act, which the Education Department used as its justification,” according to Yahoo Finance.
SoFi stocks soared after reporting better than expected earnings and providing an upbeat revenue forecast for this year. Then its student loan business is taking a hit. As SoFi Chief Executive Officer Anthony Noto explained in a Yahoo Finance interview how eliminating the moratorium on student loan payments could help with the debt ceiling.
SoFi CEO said on student debt cancellation impact that “there’s currently a debt ceiling issue that’s coming. If they just eliminated the moratorium on student loan payments, they’d recoup $5 billion of tax revenue on a monthly basis, which could help fund some of that debt with better servicing. And so it’s right now a political quagmire and, unfortunately, we don’t have leaders in Washington that are thinking about the taxpayer every day and using these blanketed programs to subsidize people that don’t need it.”
SoFi Stock Analysis
SoFi share price experienced almost 1.67% decline in recent week. However, on its last day of trading, SoFi closed at the price of $6.47 with 0.61% decline in the past 24 hours. Additionally, the stock gave weekly high at the price of $6.97 and low at $6.24, according to the data sourced from Tradingview.
The above chart shows last week’s performance of SoFi stock. Meanwhile, SOFI is down by 11.97% in one month but its year-to-date (YTD) price is up by almost 39%. SOFI reported $-0.05 earnings per share (EPS) in Q4 2022 which accounts for 46.54% surprise, while the estimate was $-0.09.
SOFI reported the revenue of $443.42 million in Q4 2022, while the estimate was $425.62 million. Its price-to-sales (P/S) ratio is 3.41 and it has an Enterprise Value to EBITDA (earnings before interest, taxes, depreciation, and amortization) ratio of 795.75. Currently, SoFi’s market cap is $6.084 billion.
The price of SOFI stock as of now seems to be following a bearish curve. As its SoFi Bank subsidiary filed suit against the U.S. Department of Education.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock 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/2023/03/09/is-sofis-student-loan-pause-lawsuit-sinking-its-stock-price/