Online banking company SoFi Technologies (NASDAQ: SOFI) is a challenging stock to analyze. A little over two years ago, it made its public market debut via a merger with a special purpose acquisition company (SPAC). Since then, its stock has experienced a fair amount of turbulence, peaking in June 2021 north of $23 per share. Today, it's trading nearly two-thirds below that high.  

There are several reasons why SoFi stock has experienced such dramatic ebbs and flows. For one, the company has a history of burning a lot of cash. Furthermore, it has been pretty acquisitive over the last couple of years, leaving skeptics with a lot of room to doubt its ability to integrate these new products and services.

If that weren't enough, SoFi's roots are in lending, particularly for student loans. This part of SoFi's business model has turned some investors bearish, as the company was not immune to the macro effects of the extended (but soon-to-be-ending) moratorium on student loan repayments. Lastly, on top of all this, the financial services sector is dominated by large banks like Goldman Sachs, JP Morgan, and Morgan Stanley.

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Source Fool.com