SoFi Technologies Share Forecast January 2022 – Time to Buy SOFI?
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Shares of American online personal finance company SoFi Technologies (NASDAQ: SOFI) are in the red today, after closing at $15.05 as of January 4th (19:59 EST). SOFI shares surged after publicly debuting in December 2020, but have since tumbled around 40%. As a result, the company boasted 2.9 million members, a stunning 96% gain from one year earlier at the end of September.
SoFi Technologies – Technical Analysis
According to the financial statement of SoFi Technologies, the market cap is at $12.144 billion with total assets worth $8.083 billion. It has recorded a net loss of 55.77 million on 2020.
Moving averages such as Exponential Moving Average (10)(15.30), Simple Moving Average (10)(15.23), Exponential Moving Average (20)(15.65), Simple Moving Average (20)(15.21) and Exponential Moving Average (30)(16.17) are indicating a sell action. Oscillators such as Relative Strength Index (14)(42.75), Stochastic %K (14, 3, 3)(65.49), Commodity Channel Index (20)(−19.19), Average Directional Index (14)(23.21) and Awesome Oscillator(−1.15) are neutral.
68% of all retail investor accounts lose money when trading CFDs with this provider.
Recent Developments
SoFi Technologies was taken public via special purpose acquisition company (SPAC) in June 2021 by popular venture capitalist Chamath Palihapitiya. The financing company made its name in refinancing student loans, a business that’s been cut down by the ongoing moratorium on student loan debt. Because of the heaps of new credit card customers, new checking accounts, and new stock trading accounts, SoFi has been able to keep growing rapidly through the pandemic.
SoFi Technologies has two product categories – lending and financial. Its lending segment consists of personal loans, student loans and home loans. Its financial segment consists of cash-back payment cards (SoFi Credit Card), credit monitoring (SoFi Relay), a money management solution (SoFi Money), brokerage services (SoFi Invest), and access to third-party insurance products (SoFi Protect). These services are delivered through SoFi’s comprehensive mobile app.
The company also acquired Galileo in 2021, a fintech platform that provides digital banking services to other institutions. Galileo powers 95% of digital banking in North America, and 70 of the top 100 fintech companies globally. With SoFi, users can spend, save, borrow, invest, and earn interest through a single mobile app. This has allowed its member base to grow by 90% or more in each of the last four quarters.
Should You Buy SOFI Shares?
SoFi Technologies recently applied for a banking license, which would allow the company to use their money market and other deposits to finance their own loans. It will also drastically reduce the cost of funds. It will also immediately boost margins. This is because there is a possibility that the company will experience $1 billion in profit margins in the next few years.
Another risk is a regulation concern that can limit SoFi’s popular trading options. But it is already in a crowded space filled with investment sites, banks and lenders. But Interest rates are expected to rise, which will be beneficial to SoFi. So, at current levels, you can buy SOFI shares and add them to your portfolio.
Buy SOFI Stock at eToro from just $50 Now!
