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.
SOFI in upward trend: price may jump up because it broke its lower Bollinger Band on March 10, 2025
SOFI may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 24 cases where SOFI's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator 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 Momentum Indicator moved above the 0 level on March 20, 2025. You may want to consider a long position or call options on SOFI as a result. In of 75 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for SOFI just turned positive on March 19, 2025. Looking at past instances where SOFI's MACD turned positive, the stock continued to rise in of 47 cases 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 259 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
SOFI moved below its 50-day moving average on February 20, 2025 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SOFI declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for SOFI entered a downward trend on March 20, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying 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 (4.929). P/E Ratio (9.443) is within average values for comparable stocks, (55.657). 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 (0.042). P/S Ratio (3.236) is also within normal values, averaging (3.448).
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 70, placing this stock worse than average.
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