Here's Why SoFi Stock Lost 34% in the First Half of the Year
SoFi Technologies (NASDAQ: SOFI) stock lost 34% of its value in the first six months of 2024 according to data provided by S&P Global Market Intelligence. There have been several changes to SoFi's business, and investors are concerned.
On the surface, SoFi is doing great. It's reporting robust growth, including a 26% year-over-year increase in revenue in the 2024 first quarter. The first quarter was its second straight with a generally accepted accounting principles (GGAP) profit, and management is guiding for that to continue in the second quarter and the full year.
Its all-online business that streamlines financial services for students and young professionals is resonating with its core target market. It's still adding hundreds of thousands of new members quarterly, hitting 8.1 million by the end of the quarter. More members are adding more products, and SoFi's expansion of its product line is leading to growth and profitability at scale. The non-lending segments of its technology platform, its business-to-business platform, and financial services together increased 54% year over year in the first quarter. SoFi is the future of banking, and it's taking steps to secure its strong fintech platform with upgrades and acquisitions.
Source Fool.com
