SOFI Stock Alert: 3 Things to Watch When SoFi Reports May 1


  • SoFi Technologies (SOFI) will report first-quarter earnings on May 1.
  • The fintech innovator has performed well since the banking crisis.
  • Political headwinds could pose complications in the coming months, however.
Silhouette of person holding mobile phone with SoFi (SOFI) logo shown in background

Next week will kick off with a major earnings report. Fintech leader SoFi Technologies (NASAQ:SOFI) is scheduled to report first-quarter 2023 earnings on May 1. Despite some volatility, the company has enjoyed an excellent month, up 12% in the green and trending progressively upward.

As SoFi gears up to report earnings, however, many investors are eyeing shares with some skepticism. For instance, experts like InvestorPlace’s Louis Navellier have raised concerns about SoFi in regard to political headwinds and the aftermath of the banking crisis.

Still, SOFI stock has been rising ahead of earnings. Shares climbed yesterday in anticipation of the Q1 release. InvestorPlace contributor Josh Enomoto reports:

“At the moment, Wall Street analysts remain generally optimistic about SOFI stock, pegging it a consensus “moderate buy” rating. The overall assessment breaks down to eight buys, three holds and no sell ratings. Additionally, analysts have an average price target of $8.20 per share, implying around 35% upside potential.”

SoFi isn’t likely to fall as the company prepares for its quarterly update. It’s normal for a stock to rise in anticipation for an earnings report. That said, SOFI has also performed well since the beginning of the year.

Let’s take a look at what investors should be watching for with SOFI stock moving forward.

SOFI Stock: What to Watch For

The first thing investors should look for in the upcoming SoFi earnings report has to do with its recent acquisitions. SoFi is highly focused on growth. Earlier this month, the company announced the acquisition of mortgage lender Wyndham Capital Mortgage. As InvestorPlace’s Eddie Pan notes, this deal “could imply that business is continuing as normal for the neobank” despite the banking crisis, which has led to increased scrutiny of the entire financial sector. If that’s true, investors should be watching for signs that SoFi is moving forward with plans to scale operations.

In general, though, investors should also regard the Q1 report as an opportunity to assess how the company has been impacted by the crisis. After all, the situation isn’t over by any means. The dust may have settled from the fall of SVB Financial’s (OTCMKTS:SIVBQ) Silicon Valley Bank, but now companies like First Republic Bank (NYSE:FRC) may be on the verge of collapsing.

SoFi Technologies has a key opportunity to emerge from the banking carnage stronger than ever, if it can continue demonstrating steady growth. SOFI stock has also performed well since March 10, when the run on SVB first happened. But the upcoming Q1 earnings report will show just how well the company is doing in the wake of the disaster.

Potential Problems

For all its recent success, though, SOFI stock does facing some headwinds that could be highly problematic. The House Republican plan for the debt ceiling is currently putting the White House’s plans for student loan relief in question. The possibility of the U.S. defaulting on its debt is also looming large, posing further potential complications for companies like SoFi.

The upcoming Q1 earnings call will be an opportunity for investors to hear how management sees and will approach these factors moving forward. The insight management provides will likely impact how SOFI stock performs in the coming months.

On the date of publication, Samuel O’Brient 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.

Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.

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