Will SOFI Stock Reach $100?
Will SOFI Stock Reach $100? Yes, SOFI Stock Price will reach $100 in the coming future. Read on for more information.
Will SOFI Stock Reach $100: Latest news
- SoFi is launching a new show called Richer Lives, hosted by Vivian Tu (aka Your Rich BFF) and Brian Walsh (aka Dr. Money). The show will explore what it means to be rich and how to use money to live your best life. The first episode will be released soon on YouTube, and future guests will include Karamo and Natalie Portman.
SoFi is a personal finance app trying to change the face of consumer banking. In other words, SOFI is an online personal finance company and online bank.
SoFi provides financial products which include student and auto loan refinancing, mortgages, personal loans, credit card, investing, and banking through both mobile app and desktop interfaces.
However, the main area of the dominance of SOFI is student loans. Student loans have been the major revenue source for Sofi.
Recently SoFi has launched a new Student Loan Verification (SLV) service. This service was introduced in response to Congress’ approval of the Securing a Strong Retirement Act (SECURE 2.0), which allows employers to match employees’ student loan payments with contributions toward retirement plans. The SLV service simplifies the process of linking matching employer retirement contributions to employee student loan repayments. It aims to help employees maximize their retirement plans through 401(k) or 403(b) contributions while still paying down student loan debt. This is significant as student loan debt has more than doubled over the last 20 years, impacting the amount many are able to save for retirement.
Will SOFI Stock Reach $100: The Hurdles
Loan Moratorium: SOFI’s main source of revenue has been student loans. In the first quarter of 2022 which is the period when COVID was in a mild state, SOFI had processed student loans of around $2 billion. SOFI has been making huge earnings from the repayments of the loan. It has been the most profitable arm of SOFI. However, after COVID hit, the US government announced a pause a payment in order to benefit the students.
The moratorium was previously set to end on December 31, 2022, however, now it has been extended to mid-2023. The payments are likely to begin from then, however, it will completely depend on the US government’s decision this factor has been a big hurdle for SOFI and the stock price has been crashing since then.
Regulatory Issue: Apart from providing banking solutions, SOFI also provides crypto activities. Initially, the regulators have not had a problem with it but since the collapse of the FTX exchange, the regulators have increased pressure on SOFI to separate their banking service from the crypto service. The Fed has asked SoFi to divest its crypto division or get into compliance with the law within two years.
Will SOFI Stock Reach $100: Stock Performance
SOFI Technology Inc.’s 52-week high price was $13.41. Since then SOFI has failed to reach this level and the stock price has been below $10. However, the stock price is likely to rise once the moratorium provided by the US government ends in the mid of this year.
Once the moratorium ends, the payments will begin which will help SOFI to turn profitable once again.
Will SOFI Stock reach $100? EPS Estimate Method
SoFi Technologies EPS for the quarter ending March 31, 2023 was $-0.05, a 64.29% decline year-over-year. And also it’s EPS for the twelve months ending March 31, 2023 was $-0.31, a 165.96% decline year-over-year.
SOFI’s EPS is forecasted to reach -0.06$ in the second quarter of 2023. SOFI needs long term positive constant growth of EPS to reach the mark of $100.
Will SOFI Stock Reach $100: Conclusion
Sofi Technology has a huge potential as banking services are changing and SOFI technology will be a major player in it. SOFI is gradually expanding its services and trying to be self-reliant in proving all the banking services. However, much will depend on the US government’s decision.
If the government decision is in favor of the financial service providers, SOFI stock will likely surge else it will trade within lower zones.