Despite the rally in the broader market, SoFi Technologies (NASDAQ: SOFI) has struggled to keep pace and is down 24% year to date. The company has had a rough time since going public in 2020 and remains 73% below its all-time high.
There are good reasons for investors to feel optimistic about SoFi. It has diversified its business model and has achieved solid growth as it takes on traditional banks. However, there are some macroeconomic challenges, and the business is in the midst of a transition year. If you're a current investor or considering investing in SoFi stock, you should know the following.
In SoFi's early days, it focused on helping people refinance and consolidate their student loan debt. This was its bread-and-butter business for many years -- until the pandemic hit in early 2020. The federal government placed a moratorium on student loans, forcing student lenders like SoFi to reevaluate their business model.
Source Fool.com