SoFi (NASDAQ:SOFI) stock closed down 2% today despite a promising new cash-back announcement. So what do you need to know?
Well, today SoFi announced that eligible checking and savings members will begin earning 3% cash back on all approved credit card purchases up to $12,000 for a full year. Indeed, as long as the customer has permitted direct deposits, they can begin earning cash back for the first year after receiving the company’s credit card.
SoFi launched its credit card in 2021 with the goal of incentivizing “healthy financial habits.” Users can directly invest their cash rewards into stocks, crypto and other financial instruments. This includes investing the cash into SoFi’s checking and savings accounts. The company framed its latest announcement today as a way to help consumers “put more cash back in their pockets” amid record inflation.
SOFI Stock Slips Despite Cash-Back Deal
SoFi CEO Anthony Noto had some promising words for the new cash-back offer.
“Our new 3% cashback offer paired with our recent announcement that we raised our APY to an industry-leading 1.25% for direct deposit members highlights how we’re continuously bringing more value to our members. In the current rate environment, we’re leading the charge among financial institutions in putting money back in our member’s pockets and helping them get their money right.”
Investors should note that SoFi’s losses today follow a pattern of pandemic-driven pain. Specifically, continued student loan moratoriums have only hurt SoFi. Indeed much of SoFi’s revenue stems from student loans, which have been on pause since early in the pandemic. SOFI stock is down nearly 55% in the year to date.
It seems the company is pulling out all the stops to make its services more appealing to potential customers. It remains to be seen whether today’s news will prove to be an upside catalyst.
On the date of publication, Shrey Dua did not hold (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 InvestorPlace.com Publishing Guidelines.
