SOFI - SoFi: Rejoice And Profit From The Free Fall

2024-01-24 15:00:42 ET

Summary

• SoFi Technologies investors have experienced a steep pullback in 2024, giving up their gains from December 2023. The fair value debate has returned to haunt investors.
• Despite the pullback, investors should pay attention to SoFi's price action and improving fundamentals. I assessed that there's no need to be unduly worried.
• The market has likely priced in a lowered guidance for 2024, but SoFi has the ability to mitigate the challenges.
• I discuss why SOFI's outperformance over the past year demonstrates its incredible resilience despite its recent bear market decline.
• With SOFI heading into its fourth quarter earnings release with more pessimism than optimism, it should help mitigate a potentially disappointing FY2024 guidance.

My Strong Buy thesis on SoFi Technologies, Inc. ( SOFI ) played out from my previous update in mid-November 2023. I anticipated that the SOFI buyers seemed prepared to defend the $6.50 level, which was robustly supported. In addition, I also highlighted why I believe SOFI's outperformance against its sector peers wasn't a one-off, as it continued to guide toward GAAP net income profitability....

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