SOFI - Why SoFi Stock Was Plummeting This Week
2024-05-03 07:52:26 ET
One of the darling stocks of the fintech sector, SoFi Technologies (NASDAQ: SOFI) , wasn't looking so darling over the past few trading days. In the wake of the company's latest earnings report investors were selling out of it, to the point where its value had fallen by more than 11% week to date as of Friday before market open, according to data compiled by S&P Global Market Intelligence .
SoFi, which combines elements of online finance and social media , kicked off the week by publishing its first-quarter results on Monday. The company's net revenue rose a robust 37% year over year to just under $645 million. On the bottom line, SoFi flipped to a net income of $88 million ($0.02 per share), according to generally accepted accounting principles ( GAAP ), which was miles better than the more than $34 million it lost in the same period of 2023.
This meant a double beat for the company, as the average analyst estimate for net revenue was slightly over $555 million. Those pundits also underestimated net income, as they were modeling $0.01 per share.
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Why SoFi Stock Was Plummeting This Week