3 Reasons to Buy SoFi, and 1 Reason to Sell

SoFi Technologies (NASDAQ: SOFI), the one-stop-shop financial services platform for high-income earners, has been a popular stock since going public through a special-purpose acquisition company in 2021. At one point in early 2021, SoFi traded at more than $25 per share, but it has since been sold off heavily like many other fintech stocks.

It now trades below $6 per share, leaving many wondering whether it's time to buy the dip. Here are three reasons to buy SoFi and one reason to sell.

One reason I would buy SoFi is that it is much better insulated from a recession than many other fintech companies, thanks to the borrowers the company serves and its funding advantage as a bank. On the company's first-quarter earnings call, CEO Anthony Noto said that the weighted average FICO score of its personal and student loan borrowers ranges from 746 to 775, which is very high. These borrowers also have a weighted average annual income ranging from $160,000 to $170,000.

Source Fool.com