• After dropping for two days, Q3 earnings beat has SOFI stock claw back losses.
  • SoFi still hoping to receive go-ahead to acquire bank.
  • Oppenheimer raises SOFI price target to $28.

As Oppenheimer analyst Dominick Gabriele predicted, SoFi Technologies (SOFI) beat earnings expectations on Wednesday. Wall Street consensus expected earnings per share (EPS) around -$0.14, but the personal finance platform brought in GAAP EPS of -0.05. Likewise, on revenue SOFI beat forecasts of $255 million by offering up $277 million for the quarter ending in September. The stock is up 14.5% at $23.38 at the time of writing.

SoFi Technologies (SOFI) Stock News: Earnings beat, price targets raised

SoFi's Q3 revenue was up 35% YoY, and total members rose to 2.9 million – an incredible 96% leap from the previous year. 377,000 new members were added just in the third quarter. 

During the earnings call, CEO Anthony Noto said, "The third quarter was our second-highest ever for both member and product growth. [...] Total products grew 108% year-over-year to nearly 4.3 million, with 600,000 additions, up 24% from 483,000 in the second quarter."

Morgan Stanley's Betsy Graseck has been boosting SOFI stock for awhile. Alongside slapping on a $25 price target on the stock, Graseck said SoFi's pending bank charter would add as much as 10% to revenues in its first year. The market now firmly believes that regulators will approve SoFi's acqusition of Golden Pacific Bankcorp., which would give it a national banking charter and would allow it to fund loans directly rather than relying on outside banking partners.

Oppenheimer raised its price target to $28. Most analysts believe SoFi will break even and turn a profit in 2023.

SOFI key statistics

Market Cap $16.3 billion
Price/Earnings N/A
Price/Sales 22
Price/Book 4.2
Enterprise Value N/A
Operating Margin 55.5%
Profit Margin

58.6%

52-week high $28.26
52-week low $11.80
Short Interest 5.8%
Average Wall Street Rating and Price Target Buy $20.42

SOFI chart: Technicals require breaking above $23.63 to retain uptrend

The pullback on Tuesday and Wednesday of this week ahead of earnings pushed SOFI shares down from $23.14 to $20.42. This made it appear that last week was the peak of the shorter swing high that has been building since September and that SOFI price would eventually trend down to its long-term support at $14.14. This was doubly the case since SOFI price broke through both the 9-day and 20-day moving averages. The SOFI stock chart shows two earlier higher swing highs – the first in February, the second in June.

Now that the positive earnings is in, and the premarket price is back above $23, it appears that this recent swing high is not over. Bulls first need to target a break above $23.63, the high point of the recent crest. Closing above the top descending trend line will put the June 2 high of $24.95 into focus. After that, closing above $26.01 is bulls' third target.

SOFI daily chart

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD: Defensive below 1.0600 amid ECB news, cautious mood

EUR/USD: Defensive below 1.0600 amid ECB news, cautious mood

EUR/USD is under pressure below 1.0600, as the US dollar finds its feet amid a cautious market mood. The euro shrugs off the latest report, citing that the ECB may unveil a new bond-buying scheme to cap yields/spreads in July. ECB-speak, US data awaited. 

EUR/USD News

GBP/USD eases towards 1.2250 as USD attempts a bounce

GBP/USD eases towards 1.2250 as USD attempts a bounce

GBP/USD is falling towards 1.2250, extending a sluggish start to the week. The pair retreats amid a renewed uptick seen in the US dollar, as risk-off sentiment prevails. Recent negative Brexit and UK political news remain a drag on the pound. US data eyed. 

GBP/USD News

Gold: Can bulls defend the critical $1,820 support? Premium

Gold: Can bulls defend the critical $1,820 support?

XAUUSD opened a new week on a positive note but failed to sustain the previous upbeat momentum after running into strong barriers near the $1,842 region. The metal shaved off the early gains and fell nearly $20 from the highest point of the day to settle Monday in the red at $1,823.

Gold News

LUNA 2.0 price is primed for 60% rally

LUNA 2.0 price is primed for 60% rally

LUNA price breached the range it was trading in and crashed violently in June. However, buyers seem to be making a comeback, suggesting that a recovery rally is in effect. The ongoing retracement hints at a 60% upswing to $3.50.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures