SOFI - SoFi: Overblown Concerns As The New Bull Case Unfolds

2024-05-24 10:56:23 ET

Summary

• SoFi's stock dipped post-earnings amid rising concerns over interest rates and macroeconomic pressures.
• Despite a lending revenue drop, strategic adjustments and potential Fed rate cuts position SoFi for growth.
• Previous entry at $7.70 led to gains with spikes above $9, validating our strategic entry and exit recommendations.
• With solid performance and strategic positioning, SoFi promises substantial growth, making it a compelling long-term investment.
• SOFI has recently consolidated between $8.50 and $6.50. Based on Fibonacci extensions, the price targets for the end of 2024 are set at $12.25 (optimistic), $10 (average), and $5.70 (pessimistic).

Investment Thesis

SoFi Technologies ( SOFI ) has dipped following its earnings, raising questions about whether it is oversold. The pullback occurred as interest income spikes significantly, driven by the U.S. elevating interest rates to their highest in 23 years — between 5.25% and 5.50% . Concurrently, the sell-off is fueled by growing concerns over deteriorating macroeconomic conditions, placing considerable pressure on the company's lending business....

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