SOFI - Down 70% Is It Finally Time to Buy the Dip on SoFi Stock?
2023-12-04 06:45:00 ET
In a credit-based economy, there will always be demand for companies to lend money to other businesses and individuals. With the rise of the internet and smartphones, a lot of start-ups have tried to take on this market and disrupt legacy institutions. One promising entrant that you may have heard of is SoFi Technologies (NASDAQ: SOFI) . The online bank and consumer lender has added customers at a rapid rate, attracting billions of deposits to its platform each quarter.
The problem is, a lot of these new-age financial institutions haven't proven they can generate consistent profits. SoFi is no different. That's why the stock is down 70% from all-time highs after just a few years on the public markets. But are investors wrong to sell off SoFi stock? Let's take a deeper dive and see if it is worth buying the dip on this bank disrupter.
SoFi has knocked it out of the park attracting new customers to its online platform over the past few years. The third quarter of 2023 was more of the same. It hit approximately 7 million customers in Q3, up from 6.24 million in the second quarter and up from 4.74 million a year ago. It now has $15.7 billion in deposits on its balance sheet -- almost all from individuals -- and it added $2.9 billion just in the third quarter.
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Down 70%, Is It Finally Time to Buy the Dip on SoFi Stock?