- SoFi raised its revenue outlook for FY22, as it didn't assume a recession. But we believe management is overly optimistic, and investors' hard-earned money could be at further risk.
- The market has been pricing in significant macro headwinds for financial stocks. Therefore, we are surprised that management didn't model a recession in its base case.
- We discuss why we sold out of SOFI stock in our previous article. We now urge investors to sell before it's too late.
- Therefore, we revise our rating on SOFI stock from Hold to Sell. Use any rallies to cut exposure partially or fully.
For further details see:
Is SoFi Stock A Buy, Sell, Or Hold After Recent Earnings? Sell Before It's Too Late