SoFi Technologies (NASDAQ:SOFI), an app popular among millennials, experienced a stock drop of more than 80% before rebounding in 2023 because of lower interest rates. Despite being 69% below its all-time high, Sofi’s strong Q4 earnings report and potential profitability make it a curious neobank investment. This is a central part of this SOFI stock outlook.
Since late 2022, SOFI’s stock skyrocketed over 77%, but Morgan Stanley downgraded the stock due to skepticism about profitability and top-line growth concerns. Investors are at the edge of their seats for solid growth and improved margins in the coming years.
SOFI shares are trading at roughly $7.80, down more than 20% for the year. Analysts projected an average price target of $9.25, with a possible 20% upside.
Excellent Recent Earnings Profit
SOFI shares grew by 19% after the online bank reported its first quarterly profit. It said a net income reaching $47.9 million and revenue reaching a peak of $594.25 million, up 34%.
Anthony Noto, CEO of SOFI, stated how non-lending segments covered 40% of adjusted net income while lending volumes rose significantly. Personal, student and home loan originations increased by 31%, 95%, and 193%, respectively. Total deposits rose from $2.9 billion to a towering $18.6 billion, over 90% coming from direct deposit members. It’s a key part of this SOFI stock outlook to keep in mind.
Projected full-year earnings per share range from 7 to 8 cents. Revenue is expected between $550 million and $560 million, a step up from analyst estimates. SoFi shares climbed 19.4% to $9.09 per share on January 29 and exceeded 36% in the past year.
New Member
Sofi has dubbed Arun Pinto as Chief Risk Officer, with former CRO Aron Webster stepping into the shoes of executive vice president. Pinto brings extensive risk management experience from Wells Fargo and JPMorgan Chase, and a Bachelor of Applied Science from UC Berkeley.
Dana Green a former Federal Reserve official, joined Sofi’s ranks as Board of Directors. Risk management is key due to its loan services. SOFI stock grew post-earnings but now dipped 10%.
Buy SOFI Now
Investors find current performance and prospects critical. According to Sofi’s prediction, adjusted revenue could increase by 21% this quarter and 20% to 25% annually until 2026. Cross-selling opportunities abound, improving client involvement as demands change.
Since future interests are uncharted territory, analysts hesitate to back up SOFI fully. However, it’s under $10 pricing and unlocked doors for risk takers to open. This concludes this SOFI stock outlook.
On the date of publication, Chris MacDonald 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.
