SOFI - SoFi Raised Its Earnings Forecast for 2024. Here's Why Its Growth Is So Strong.
2024-05-13 07:13:00 ET
SoFi Technologies (NASDAQ: SOFI) recently reported solid first-quarter earnings as its lending business slowed, while two of its newer revenue streams boosted it. The company beat analysts' estimates and raised its annual earnings guidance, but that didn't stop the stock from falling more than 10% after its announcement. The dip could prove to be an opportunity for long-term investors. Here's why.
Early on, SoFi focused on helping people refinance their student loans, which was its bread-and-butter business until the pandemic hit in early 2020. When the federal government placed a moratorium on student loans, many lenders like SoFi were forced to reevaluate their entire business.
One area SoFi pivoted into was personal lending. From 2020 to 2023, SoFi's personal loan originations went from $2.6 billion to $13.8 billion.
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SoFi Raised Its Earnings Forecast for 2024. Here's Why Its Growth Is So Strong.