SoFi Technologies (NASDAQ:SOFI) stock is taking a beating on Thursday after the company was downgraded by analysts at Oppenheimer.
Analyst Dominick Gabriele is behind today’s news as he drops shares of SOFI stock from an “outperform” rating to a “perform” rating. That matches the analysts’ consensus rating of “hold” for the stock based on 13 opinions.
The Oppenheimer analyst specifies that this downgrade is purely based on the valuation of SOFI stock. Here’s what he said about that in a note to clients obtained by Seeking Alpha:
“This downgrade is purely on valuation after what we suspect is a significant short squeeze on a likely bear thesis based on account changes away from fair value accounting, inflated assumptions by management, capital capacity and worries about credit quality.”
What Else Gabriele Says About SOFI Stock
Despite the downgrade, the Oppenheimer analyst has high hopes for SoFi in 2024. He upgraded his revenue estimate in this note from $2.4 billion to $2.6 billion. To put that in perspective, Wall Street is looking for SoFi to report revenue of $2.48 billion.
Alongside today’s news comes some 24 million shares of SOFI stock trading hands. That’s still a good way off from its daily average trading volume of about 46.7 million shares. Even so, the stock is down 6.6% as of Thursday morning. However, SOFI is still up 103.5% year-to-date.
Investors on the lookout for more of the most recent stock market news will want to keep reading!
We have all of the best stock market news that traders need to know about on Thursday! Our coverage includes everything happening with shares of Xpeng (NYSE:XPEV), MicroVision (NASDAQ:MVIS), and Chinese stocks today. All of that is ready to go at the links below!
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On the date of publication, William White 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 InvestorPlace.com Publishing Guidelines.
