Why SoFi Technologies Stock Is Plunging Today
Shares of digital personal finance company SoFi Technologies (NASDAQ: SOFI) were down 12.5% to $15.28 as of 10:30 a.m. EDT today. In its second-quarter earnings report, SoFi said it grew its revenue by a stunning 101% year over year to $231.3 million. At the same time, the company added 42.9 million new accounts to reach a total of 78.9 million. But they were not enough to satisfy investors' appetite.
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SoFi stock is incredibly expensive right now at a whopping 15 times revenue. With that many accounts already outstanding, investors are betting that the company's growth trajectory will fall off the cliff in the near future.
Source Fool.com
