SoFi Stock Forecast 2022: SoFi is down 47% over the past year. A buying opportunity?



SoFi Stock Forecast 2022: Shares of SoFi Technologies Inc (Nasdaq: SOFI) are expected to trade between $8.99 and $10.13. The overall recommendation is neutral

SoFi Stock Predictions 2022: Latest Price

Metric

Assess

Tendency

Share volume

39.79M

Lower

Average share volume

70.81 million

N / A

PE before (1 year)

-26.58

Lower

SoFi Stock Forecast 2022: Performance Chart

Action name

1 month

6 months

YTD

1 year

-5.85%

-42.64%

38.39%

-47.13%

SoFi Stock Forecast 2022: Technical Analysis

Source

Support

Resistance

Recommendation

$7.9 (S3)

$10.2 (R1)

To sell

$8.6(S3)

$9.8(R1)

To sell

SoFi Stock Predictions 2022: Google Trends

SoFi 2022 Stock Forecast: Bull Case

  • SoFi Technologies has a range of innovative products – In the modern age, people are tired of physical banking. It has several reasons, the main one being that it is slow and expensive due to account fees and clearing fees. In other words, traditional banking is full of middlemen up there to take their profits and in turn increase the overall cost to retail borrowers. SoFi Technologies is trying to solve this problem by creating a digital bank that is fast, cheap and devoid of middlemen. SoFi Technologies was founded in 2011 with the main intention of making student loans cheaper and providing a smooth and memorable experience for retail customers that is cheap and reliable and SoFi does that year after year and that makes it one of the best choices to take loans online across America.
  • SoFi is the leader in its space – While it’s true that many other companies are trying to revolutionize the banking experience for customers, SoFi technologies stand out from the pack. This is evident by the fact that SoFi has 3.5 million users on its app, while the others only have a few thousand users. More importantly, SoFi is growing at a steady rate of nearly 500,000 users per quarter, which is commendable. SoFi can be called the leader of the pack and it looks like that won’t change any time soon.
  • Q4 2021-22 results better than expected – SoFi announced its fourth quarter results on March 1, 2022 and exceeded market expectations on several fronts. First, EPS came in at -0.15 vs. -0.16 estimated. Additionally, revenue showed commendable growth to $303.81 million, the company reported nearly zero revenue in Q4 2020 and Q1 2021. The company added 523,000 new members quarterly, a sequential increase by 39%. These results are achieved despite the unexpected extension of the student loan moratorium in December. The company reported fourth quarter EBIDTA of $5 million and annual EBIDTA of $30 million. It can therefore be seen that the company is producing excellent quarterly results and growing the user base despite operating in a difficult environment.
  • Well positioned for future growth – Indeed, SoFi Technologies presents the bank of the future. Currently, America has 210 million adults. Considering just 20% market share of SoFi Technologies by 2030, that comes to around 42 million. This figure is more believable as the company is rapidly expanding its user base. With 3.5 million users, the revenue is around 303 million dollars, with 42 million users it should at least increase proportionally to 5 billion dollars. A fintech company may well progress towards EBIDTA margins of 30% and should have a price/earnings ratio of at least 20X by 2030. In short, SoFi technologies offer great room for future growth by multiplying the revenue and user base.

SoFi Stock Forecast 2022: Latest Video

SoFi 2022 Stock Forecast: Bearish Case

  • Global Bad Feelings – Global stock markets have been in bearish territory since late November. All indices are down like the Nasdaq composite, the Dow Jones Industrial Average since November. The Nasdaq hit a high of 16,000 on the 19thand November 2021 and is currently trading at 13,838 as of 21.03.2022. In the bear market, almost all stocks are sinking according to their profiles and SoFi technologies are no exception. Over the past six months, it has returned negative 42% and has returned negative 38% since the start of this year. Global market sentiments are negative due to the Russian-Ukrainian war and inflation fears. Global market sentiments are like the tide and all stocks are like ships sailing through it. In a positive tide, every stock is sailing well, but currently in a war situation, every second is likely and expected to fall. Bullish trades on SoFi Technologies are not possible until the tide turns and we return to normal.
  • High Growth Momentum stocks lose their spree- If we look closely, in this bear market, the ones taking the most loss are the recent IPOs in partnership with SPACs. High-momentum growth stocks are the hardest hit in this bear market. In addition, stocks with high valuations carrying hope for the future are the first to lose their gains in market corrections. All of these factors are also common to SoFi Technologies. It was listed on Nasdaq on 4and December 2020 at market price of $10.41 per share in partnership with PSPC. Additionally, current inflation is at a multi-decade high, meaning that money tomorrow may be cheaper than money today, pushing investors to take profits on high-momentum stocks that have risen so rapidly over the past year. With SoFi Technologies, it has been the similar case.

Also Read: SoFi Stock Forecast

SoFi Stock Prediction 2022: Peer Comparison

Setting

SoFi Technologies Inc.

credit acceptance company

Upstart Holdings Inc.

OneMain Holdings Inc

SLM Company

First Cash Holdings Inc.

Market capitalization

8.9B

7.5 billion

10.6B

5.9B

5.2B

3.4B

Price vs 52 week high

-61.6%

-26.8%

-68.6%

-24.3%

-14.6%

-30.1%

1 month return

-15.9%

-4.3%

-3.2%

-12.8%

-8.3%

-11.2%

Year-over-year revenue growth

72.8%

82.9%

252.8%

33.0%

20.6%

4.1%

Diluted EPS (Annual)

-1.00

59.52

1.43

9.87

3.61

3.04

Net Operating Cash Flow

-1.4B

1.1B

168.4 million

2.3B

-49.5B

223.3 million

Data as of 21.03.2022, considering financial data up to 31st December 2021

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SoFi Stock Prediction 2022: Is SoFi a Buy for 2022?

SoFi Technologies is taking every possible step to disrupt the physical banking market and has been successful so far with a steadily growing user base and revenue. SoFi also has an impressive team with a CEO who was a former CFO of Twitter and head of global banking at Goldman Sachs and the company has nearly 300 employees from Citi Group and JPMorgan. Everything seems to be going well for the company except the overall scenario.

With inflation still rising and uncertainties looming in the form of a war between Russia and Ukraine, an uptrend is unlikely to start anytime soon for SoFi Technologies.

But if an investor is looking at a five- to six-year horizon, SoFi can offer multibagger returns, especially after the recent rate cut.

-Vineet Agarwal

Note: Crowdwisdom360 gathers forecasts and data from all over the net and has no internal views on likely stock or cryptocurrency trends. Please consult a registered investment advisor to guide you in your financial decisions.

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