What's Going On With SoFi Technologies Stock Monday?
Portfolio Pulse from Anusuya Lahiri
SoFi Technologies Inc. reported fiscal first-quarter 2024 results with a 26% year-on-year increase in adjusted revenue to $580.648 million, surpassing consensus estimates. Adjusted EPS was $0.02, beating the consensus of $0.01. The company added 622,000 new members, reaching over 8.1 million, and introduced over 989,000 new products, totaling over 11.8 million. Adjusted EBITDA rose by 91% Y/Y to $144.39 million. SoFi projects Q2 adjusted net revenue of $555 million to $565 million and adjusted EBITDA of $115 million to $125 million. For the full year 2024, it expects at least 50% growth in Tech Platform and Financial Services segments, with Lending revenue at 92% to 95% of 2023 levels, and an adjusted EBITDA margin of approximately 25%. SoFi stock is down 10% at $7.08. Investors can also gain exposure to SoFi through VanEck Social Sentiment ETF (BUZZ) and Schwab Strategic Trust Schwab Crypto Thematic ETF (STCE).
April 29, 2024 | 4:00 pm
News sentiment analysis
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NEGATIVE IMPACT
VanEck Social Sentiment ETF (BUZZ) offers exposure to SoFi Technologies, which reported strong Q1 2024 results but saw its stock price drop 10%.
Given BUZZ ETF's exposure to SoFi Technologies, the negative price action in SOFI shares following the earnings report could have a short-term negative impact on BUZZ, although the diversified nature of the ETF may mitigate this effect.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
SoFi Technologies Inc. reported strong fiscal first-quarter 2024 results with significant growth in revenue, EPS, and member count, but provided a cautious outlook for Q2 revenue below consensus estimates.
Despite beating Q1 estimates, SoFi's cautious Q2 revenue outlook and the subsequent 10% drop in stock price indicate a negative short-term impact. The strong performance metrics are overshadowed by the lower-than-expected future revenue guidance.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100
NEGATIVE IMPACT
Schwab Strategic Trust Schwab Crypto Thematic ETF (STCE) provides exposure to SoFi Technologies, which experienced a 10% stock price decline after reporting Q1 2024 results.
STCE's exposure to SoFi Technologies means the ETF could see a short-term negative impact due to the drop in SOFI's stock price. However, the impact may be limited by the ETF's broader focus, including other assets.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50