SOFI - What's Going On With SoFi Technologies Stock?
2024-06-13 04:03:00 ET
We are living in a digitally powered economy. This includes banking and consumer lending. Companies such as SoFi Technologies (NASDAQ: SOFI) have attracted millions of customers with their online-only consumer banks that offer time-saving features and higher interest rates on deposits than the big banks. The company now has over 8 million members, up from 1 million in 2020.
And yet SoFi stock is off 73% from all-time highs. What is going on with this company, and is the market correct to punish shareholders who bought back in 2020 and 2021?
SoFi is an online bank that aims to attract individuals searching for high interest rates paid on deposits. It currently offers 4.6% annual interest payments, which is much better than competitors like Bank of America or Chase. Customers of SoFi can also get a debit card, credit card, invest through the SoFi brokerage, and buy insurance. It makes money through fees on these products and earning interest income on deposits at the brokerage account.
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What's Going On With SoFi Technologies Stock?