2024-07-08 07:20:00 ET
It's been a rough ride for shareholders of SoFi Technologies (NASDAQ: SOFI) . After a drop of 35% this year (as of July 3), the stock currently trades 75% below its peak. But interested investors can now scoop up shares at a price-to-sales ratio of 2.9, well below their historical average.
Before you buy this fintech stock , though, it's critical to take the time to understand one important risk factor.
Founded in 2011, SoFi originally became known as a digital bank that offered student loan refinancing solutions. However, these days, the business provides numerous other financial services, including checking and savings accounts, a credit card, and investment services. But at its core, SoFi is a lender, and a new type of loan product has become its most important offering.
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Warning: Don't Buy SoFi Stock Before You Know This 1 Key Risk