SoFi Stock Forecast 2022: SoFi is down 47% over the last year. A buying opportunity?



SoFi Stock Forecast 2022: SoFi Technologies Inc (Nasdaq: SOFI) shares are expected to trade between $8.99 and $10.13. The overall recommendation is neutral

SoFi Stock Forecast 2022: Current Price

Metric

value

trend

share volume

39.79 million

Lower

Average share volume

70.81 million

N / A

Forward PE (1 year)

-26.58

Lower

SoFi Stock Forecast 2022: Performance Chart

inventory name

1 month

6 months

course of the year

1 year

-5.85%

-42.64%

38.39%

-47.13%

SoFi Stock Forecast 2022: Technical Analysis

source

support

resistance

recommendation

$7.9 (S3)

$10.2 (R1)

Sell

$8.6 (S3)

$9.8 (R1)

Sell

SoFi Stock Forecast 2022: Google Trends

SoFi Stock Forecast 2022: Bull Case

  • SoFi Technologies has an innovative product line – In the modern era, people are fed up with physical banking. It has several reasons, the main ones being slow and expensive due to account fees and clearing fees. In other words, traditional banking is full of middlemen who take their profits and in turn increase the overall cost for personal borrowers. SoFi Technologies tries to solve this problem by creating fast and cheap digital banking without intermediaries. SoFi Technologies was founded in 2011 with the primary intention of making student loans cheaper and providing retail customers with a smooth and memorable experience that is cheap and reliable, and SoFi does this year after year, making it one of the top choices for online loans across America.
  • SoFi is a leader in its field – While it’s true that there are many other companies trying to revolutionize the customer banking experience, SoFi technologies stand out from the crowd. It is evident by the fact that SoFi has 3.5 million users on its app while the others have only a few thousand users. More importantly, SoFi is growing at a healthy rate of almost 500,000 users per quarter, which is commendable. SoFi can be called the leader of the pack and it seems that this is not going to change anytime soon.
  • Better than expected results for Q4 2021 -22 – SoFi reported fourth quarter results on March 1, 2022, beating market expectations on several fronts. First, EPS came in at -0.15 versus an estimated -0.16. Revenue has also shown commendable growth to $303.81 million, the company reported almost no revenue in the fourth quarter of 2020 and the first quarter of 2021. The company added 523,000 new members quarterly, a sequential increase of 39%. These results come despite the unexpected extension of the student loan moratorium in December. The company reported fourth quarter EBIDTA of $5 million and annual EBIDTA of $30 million. So it can be seen that the company is delivering excellent quarterly results and growing user base despite operating in a challenging environment.
  • Well positioned for future growth – In fact, SoFi Technologies presents the bank of the future. America currently has 210 million adult populations. If you consider only 20% market share of SoFi Technologies by 2030, you come to around 42 million. This number is more credible as the company is rapidly expanding the user base. With a user base of 3.5 million, the turnover is around 303 million US dollars, with 42 million users it should grow at least proportionally to 5 billion US dollars. A fintech company can move well towards 30% EBIDTA margins and is expected to post at least a 20x price-to-earnings ratio by 2030. In short, SoFi technologies offer great scope for future growth, increasing revenue and user base by multiples.

SoFi Stock Forecast 2022: Latest Video

SoFi Stock Forecast 2022: Bear Case

  • Bad Global Sentiment – Global equity markets have been in bear territory since late November. All indices like Nasdaq Composite, Dow Jones Industrial Average are down since November. Nasdaq peaked at 16000 on the 19thth November 2021 and is currently trading at 13,838 as of 03/21/2022. In a bear market, almost all stocks fall according to their profiles, and SoFi Technologies is no exception. It has posted a negative return of 42% over the past six months and a negative return of 38% since the beginning of this year. Global market sentiment is negative due to the Russia-Ukraine war and fears of inflation. Global market sentiment is like a tide and all stocks are like ships sailing in it. In a positive tide every stock sails well, but currently in a war situation every second stock is likely and expected to plummet. Bullish trades on SoFi technologies are not possible until the tide turns and we return to normal.
  • Stocks with high growth momentum lose their run If we look closely, in this bear market, those with the biggest losses are recent IPOs in partnership with SPACs. Growth stocks with high momentum are hit hardest in this bear market. Also, high-valued stocks that promise hope for the future are the first to lose gains in market corrections. All of these factors are also common in SoFi technologies. It was listed on the Nasdaq on the 4thth December 2020 at a market price of $10.41 per share in partnership with SPAC. Also, current inflation is at a decade-high, meaning money tomorrow may be cheaper than money today, and is driving investors to book gains in high-momentum stocks that have risen so rapidly over the past year are. It was similar at SoFi Technologies.

Also Read: SoFi Stock Forecast

SoFi Stock Forecast 2022: Comparison to Peers

parameter

SoFi Technologies Inc

credit acceptance company

Upstart Holdings Inc

OneMain Holdings Inc

SLM Corporation

First Cash Holdings Inc

market capitalization

8.9b

7.5B

10.6B

5.9b

5.2B

3.4B

Price versus 52-week high

-61.6%

-26.8%

-68.6%

-24.3%

-14.6%

-30.1%

1 month return

-15.9%

-4.3%

-3.2%

-12.8%

-8.3%

-11.2%

YoY revenue growth

72.8%

82.9%

252.8%

33.0%

20.6%

4.1%

EPS diluted (YoY)

-1.00

59.52

1.43

9.87

3.61

3.04

Net Operating Cash Flow

-1.4B

1.1b

168.4 million

2.3b

-49.5B

223.3 million

Data as of March 21, 2022, taking into account the key financial figures up to March 31, 2022St December 2021

.

SoFi Stock Forecast 2022: Is SoFi a Buy for 2022?

SoFi Technologies is taking every step imaginable to disrupt the physical banking market and so far has been successful with an ever-growing user base and rising revenue. SoFi also has an impressive team that includes CEO, former CFO at Twitter and head of global banking at Goldman Sachs, and the company has nearly 300 associates from Citi Group and JPMorgan. With the exception of the global scenario, everything seems to be fine with the company.

With ever-increasing inflation and looming uncertainties in the form of the Russia-Ukraine war, the upward trend for SoFi Technologies is not expected to start any time soon.

But if an investor looks at a five- to six-year horizon, SoFi can generate multibagger returns, especially after the most recent discount rate.

– Vineet Agarwal

Note: Crowdwisdom360 collects predictions and data from across the web and has no internal view of the likely trends in the stocks or cryptocoins. Please consult a registered investment advisor for advice on your financial decisions.

About Meredith Campagna

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