SoFi Stock Enjoys Price Rally Following a Fine Earnings Release 

• The online loan provider showcased better results than estimates
• SOFI stock price is trading at 7.20 USD

The digital fintech space has significantly changed with SoFi Technologies (NASDAQ: SOFI) stepping in. The company is doing quite well as it has brought several first-in-the-segment products—including student loans and types of personal loans, etc. Initially, it was recognized as a fintech platform, but eventually, its activities started setting it up as more like a digital banking institution. Within the industry, it even got its title as ‘neobank.’

SoFi published its earnings release on January 30, 2023, which contained a number large enough to make the stock price jump. However, SOFI stock price seems to be stuck in a dilemma, and as several analysts put it, the reason could be the company’s strategy and inadequate disclosure. 

SoFi (NASDAQ: SOFI) Stock Price Chart Movement

Since the start of this year, SOFI stock has increased and surged over 60% from around 4.4 USD to the current price of 7.20 USD. It dipped a bit over 2% within the last trading session. From 4.4 USD initially this year, SOFI stock increased by 85% within 30 days. The volume during this time remained above 1.25 billion. 

Certainly, the factors behind pushing the price upwards are indications of inflation getting easy and a recent earnings release where the company performed better than the estimates during Q4 2022. 

Given the chart movement, the price is aspiring to attain the resistance at 8.55 USD, which was in August last year. While the stock has been sustaining its support above 4 USD since December and consolidated for about a month or so before moving upward. 

Better Than Expected Results Pushed Stock Price

The San-Francisco based finance firm has showcased multiple reasons for inventors to boost belief that ultimately reflected in the price. During the fourth quarter of 2022, revenue was reported at 443.4 million USD which has changed over 58% year over year. Earnings per share for SOFI stock remained at -0.04 USD, which is better than the estimate of -0.07 USD. 

By the end of last year, the user base on the platform crossed over 5.2 million. Although it is far from profitability at the time, as it registered a loss of 43 million USD, the management expects to attain it by the end of this year. This year, there were also indications of better-adjusted earnings before interest, taxes, depreciation and amortization (EBITDA). 

Currently, the company stands at 1.52 billion USD in revenue which is expected to reach up to 1.96 billion USD in 2023 and 2.55 billion USD by the next year. 

The balance sheet also shows some healthy numbers, with personal loans amounting to nearly 8 billion USD while student loans are worth 4.6 billion USD. 

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish 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.

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