Is SOFI Stock a Buy, Sell or Hold? 3 Pros Share Their Takes.

  • InvestorPlace experts have recently weighed-in on SoFi Technologies (SOFI) in the face of its recent earnings call.
  • Some believe SOFI stock is woefully undervalued, presenting strong "buy the dip" opportunities.
  • Others claim the it still has room to fall further.
Sofi stock - Is SOFI Stock a Buy, Sell or Hold? 3 Pros Share Their Takes.

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Fintech giant, SoFi Technologies (NASDAQ:SOFI) stock remains a fan-favorite investment choice for both retail and Institutional investors. SOFI has undeniably had a rough 2022 so far, much like other tech and growth stocks-the tech-heavy Nasdaq Composite is down 22% year-to-date.

The refinance company’s recent hurdles stemming from President Joe Biden’s student loan relief program finally appear to have a deadline, however. The student loan moratorium is set to end August 31, as companies like SoFi position themselves to benefit from the new wave of loan-seeking students. The company’s fundamentals may lead investors back in the water at the same time.

SoFi has long been a hot-topic for InvestorPlace writers across the board. Each analyst has a unique take on the start-up, presenting their own set of interest and concerns related to the company. So, is SOFI a buy, sell, or hold? Let’s see what the pros think about the digital lending company lately.

SOFI Stock Is a Buy

On May 21, InvestorPlace contributor Vandita Jadeja argued SOFI is just a bit too impressive not to get in on its current nearly five-finger discount. Indeed from its all-time high around $25 per share, currently the company trades for about $6.76. A dip, which Jadeja claims is a “golden opportunity.”

Citing the company’s recent first-quarter performance, in which it beat consensus revenue estimates and enjoyed strong year-over-year member growth, Jadeja believes SOFI is a “buy” for the long-term.

SOFI Is a Hold

On May 23, GS Early offered some tentative advice for a SOFI stock “in limbo.”

Early claims SoFi has reclaimed lost ground in recent weeks, earning funding from major venture capital firms, making it a tempting time to get back in. On the other hand, the company has a roughly 22% short interest, making it a legitimate short squeeze candidate. As well, even if you buy the dip now, it’s no guarantee of a near-term turn around.

SoFi, as much as any high growth tech company, is at the whims of the greater economy. When the markets make its inevitable comeback, SoFi is positioned to win big. Should stocks continue to decline, SoFi could end up an unbecoming casualty. Early’s sentiment reflects a “hold” rating on the stock, acknowledging its potential growth, tempered by its vulnerability to macroeconomic conditions.

SOFI Stock Is a Sell

On May 23, Thomas Niel issued a warning on SoFi, in the midst of an $8 per share rebound. The company bounced back from a 52-week low on May 10, to below $5 per share. Unfortunately, Niel argued the recent rally was a “dead-cat bounce” for a stock destined to return to its bearish troughs.

While Niel acknowledged the company’s first-quarter revenue beat, its lowered second-quarter revenue and profit guidance was of more interest. Add in its strong short interest, the negative forces of inflation, rising interest rates, swirling recession rumors, and even the potential for an another student loan moratorium, Niel believes SOFI stock is a cautionary tale.

According to the analyst, below $5 is the right entry point for most investors, well below its current nearly $7 price.

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 Publishing Guidelines.

With degrees in economics and journalism, Shrey Dua leverages his ample experience in media and reporting to contribute well-informed articles covering everything from financial regulation and the electric vehicle industry to the housing market and monetary policy. Shrey’s articles have featured in the likes of Morning Brew, Real Clear Markets, the Downline Podcast, and more.

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