Prominent digital bank and loan providing platform, SoFi Technologies (NASDAQ: SOFI) remained one of the most searched stocks in the border fintech space. The company has established itself in the market and investors preferes SOFI stock given its strong financials and growth potential. Although the stock price gets affected for a while due to rumors and news here and there, analysts suggest it for long term holding.
SoFi’s Business Affected by the ‘Freeze’
SoFi Technologies received the highly anticipated banking chartered award in early 2022. However, the banking firm is facing difficulties in operations given the continued obligations of repayment requirements freezing.
The digital bank had been struggling since its inability to incentivize the borrowers through refinance. And given the situation, there remain no potential ways for the company to monetize over the student loans.
The US government went on to freeze the loan repayment requirements of the recipients during the pandemic. It was expected to get unfrozen soon but it stayed and still continued. President Biden has made efforts to revoke the freeze but seems like it might take until June 2023. This would make the loan provider perform better and SOFI stock price to move upside.
SOFI Stock Price Movement
SOFI stock price just hit its all-time low at $4.41 mark on 23 November. Therefore, buyers are not showing their interest in the given asset price. Later on, short-covering provides little price recovery while buyers attempt to propel valuation to 20 day moving average.
The trading volume looks normal, suggesting low volatility, therefore, RSI indicator remains below the semiline (50 mark). Market outlook is intensely bearish for a long-term outlook. Besides, there could increase in price if buyers manage the support level.
SOFI stock has lost about 7.4% of its value in a month while the S&P 500 index has gained more than 8% within the same timeframe.
SoFi Technologies Leveraging Crypto
Following the banking chartered award, the online banking platform received a lot of fame, and so the regulatory watchdogs’ attention. The Federal Reserves pointed out the increasing crypto exposure of the company through crypto brokerage subsidiary Sofi Digital Assets.
The company, however, went on to expand and added more crypto offerings for users’ portfolios. Until now, the company manages about 132 billion USD worth crypto assets portfolio of customers.
Analysts believe that the company could perform well and the stock price is likely to breakout. It only needs to take care of business execution ahead while keeping distance from regulatory actions.
SoFi Facing Backlash After Current Controversy
Recently the loan provider reported being stuck in a controversy where it had to pull down its advertisement. The ad was showcasing a character depicting a professor. However, some found it sensitive and consisting antisemitic stereotype.
The employees at the company quickly responded to the situation and went on to remove the advertisement. The company stated that given the ‘abundance of caution’ and growing antisemitism, they were working to take down the advertisement. It is committed to resist the discrimination and racism and if something like this take place than it’s completely unintentional.
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/2022/12/02/sofi-stock-likely-to-show-uptrend-in-2023/