The Positive Buzz for SoFi Stock Continues Despite 57% Decline


SOFI stock - The Positive Buzz for SoFi Stock Continues Despite 57% Decline

Source: Michael Vi / Shutterstock

SoFi Technologies (NASDAQ:SOFI) is having a brutal year. With SOFI stock down 57% year-to-date and 10% in the past week alone, there’s no other way to characterize what has happened to the fintech stock in 2022. The primary culprit is the ongoing federal student loan moratorium recently extended through Aug. 31.

Between the lack of clarity on its student loan business and the company’s significant losses generated, it has been hard for investors to get behind SoFi despite all the good things it has been rolling out for its 3.5 million members across the country.  

If you own SOFI stock, the good news is that the company is still attracting positive buzz despite its brutal year in the markets. 

According to the VanEck Social Sentiment ETF (NYSEARCA:BUZZ), SoFi is the exchange-traded fund’s 15th-largest position with a 2.21% weighting. That puts it ahead of 60 companies. 

If you’re unfamiliar with the 14-month-old ETF, it tracks the performance of the BUZZ NextGen AI US Sentiment Leaders Index. The index follows online content from social media, news stories, blog posts and other data. The 75 large-cap stocks with the highest positive investor sentiment make the index. 

As of April 20, GameStop (NYSE:GME) is No. 1 on the list at 4.42%. Despite losing $148 million in fiscal 2022, $229 million more than a year earlier, investors are clinging to Ryan Cohen’s every move to revive the video game retailer.    

I don’t hesitate to suggest that if you have to buy a stock for the next decade, SOFI is a better move than GME because SoFi CEO Anthony Noto is 10x the chief executive Ryan Cohen could ever be.

With little news to report about SoFi other than the ongoing moratorium, it’s good to know that there’s still a lot of positive buzz surrounding the company, including the analysts, who don’t seem all that worried about its future. Of the 14 covering it, eight rate it a Buy and six a Hold, with a 12-month average target price of $14.35.

SOFI remains a buy for aggressive investors. 

On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Article printed from InvestorPlace Media,

©2024 InvestorPlace Media, LLC