SoFi (SOFI, $17.46) posts a wider loss in Q2
SoFi Technologies posted a loss for the second quarter, even as revenue doubled.
The online personal finance company incurred a net loss of -48 cents a share, vs. the prior year quarter’s loss of -3 cents a share.
Revenue reached $231.27 million in the quarter from $114.95 million last year.
SoFi’s total membership rose +113% year-over-year to 2.6 million. Total products increased +123% from the year-ago to 3.7 million at quarter-end.
Regarding this year’s loss, the company said, “We remeasured our valuation allowance during 2020 as a result of the deferred tax liabilities recognized in connection with our acquisition of Galileo, which decreased the valuation allowance by $99.8 million.”
“The absence of that tax benefit, together with significant non-cash stock-based compensation expenses and fair value changes in warrants primarily related to the fair market value of SoFi stock, were the largest contributors to the current period net loss.”
SoFI said that management expects “continued strong growth in the third quarter of 2021”: adjusted net revenue is expected to range between $245 million and $255 million, and adjusted EBITDA is projected to be $(7) million to $3 million.
Momentum Indicator for SOFI turns positive, indicating new upward trend
SOFI saw its Momentum Indicator move above the 0 level on April 17, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 75 similar instances where the indicator turned positive. In of the 75 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where SOFI's RSI Oscillator exited the oversold zone, of 23 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for SOFI just turned positive on April 14, 2025. Looking at past instances where SOFI's MACD turned positive, the stock continued to rise in of 48 cases over the following month. The odds of a continued upward trend are .
SOFI moved above its 50-day moving average on April 25, 2025 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for SOFI crossed bullishly above the 50-day moving average on May 02, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 11 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SOFI advanced for three days, in of 262 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 167 cases where SOFI Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 46 cases where SOFI's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
SOFI broke above its upper Bollinger Band on April 24, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. SOFI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.447) is normal, around the industry mean (4.994). P/E Ratio (9.443) is within average values for comparable stocks, (56.337). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (3.039). SOFI has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.041). P/S Ratio (3.236) is also within normal values, averaging (3.489).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SOFI’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 67, placing this stock worse than average.
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