#1 - SoFi Technologies (NASDAQ:SOFI)
Prior to the pandemic, SoFi Technologies, Inc. (NASDAQ: SOFI) was synonymous with student loans. The company is one of the original “fintech" (financial technology) companies, and student loans are a large part of the company's business model.
But this is not the same SoFi that existed prior to the pause on student loans. The company received its bank charter in 2022. That didn't help SOFI stock, which dropped from over $15.80 a share at the end of 2021 to under $5 a share early in 2023.
It's been a different story in 2023 with SOFI stock over 73%. And much of that gain has occurred since the passage of the Fiscal Responsibility Act. Still, there are some concerns that investors need to evaluate the stock as an overvalued bank stock rather than as a fintech stock.
However, the other argument is that SoFi's digital-first approach aligns with its core customer base that demands, and expects, a digital solution for their banking. Viewed with that lens, SoFi is still an undervalued fintech company that also happens to be a bank.
Analysts won't be that much help. The SoFi analyst ratings on MarketBeat give the stock a consensus Hold but have a price target that's 15% higher than its price as of October 2, 2023.
About SoFi Technologies
SoFi Technologies, Inc provides various financial services in the United States, Latin America, and Canada. It operates through three segments: Lending, Technology Platform, and Financial Services. The company offers lending and financial services and products that allows its members to borrow, save, spend, invest, and protect money.
Read More - Current Price
- $15.43
- Consensus Rating
- Hold
- Ratings Breakdown
- 3 Buy Ratings, 6 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $9.80 (36.5% Downside)
