SoFi Technologies (NASDAQ:SOFI) shareholders are up 5.8% this past week, but still in the red over the last year – Yahoo Finance
Even the best investor on earth makes unsuccessful investments. But it should be a priority to avoid stomach churning catastrophes, wherever possible. So we hope that those who held SoFi Technologies, Inc. (NASDAQ:SOFI) during the last year don’t lose the lesson, in addition to the 73% hit to the value of their shares. While some investors are willing to stomach this sort of loss, they are usually professionals who spread their bets thinly. SoFi Technologies may have better days ahead, of course; we’ve only looked at a one year period. The falls have accelerated recently, with the share price down 14% in the last three months. However, one could argue that the price has been influenced by the general market, which is down 6.4% in the same timeframe.
The recent uptick of 5.8% could be a positive sign of things to come, so let’s take a lot at historical fundamentals.
See our latest analysis for SoFi Technologies
Given that SoFi Technologies didn’t make a profit in the last twelve months, we’ll focus on revenue growth to form a quick view of its business development. When a company doesn’t make profits, we’d generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last year SoFi Technologies saw its revenue grow by 53%. That’s a strong result which is better than most other loss making companies. So the hefty 73% share price crash makes us think the company has somehow offended market participants. There’s clearly something unusual going on here such as an acquisition that hasn’t delivered expected profits. We’d recommend taking a very close look at the stock (and any available forecasts), before considering a purchase, because the share price is not correlated with the revenue growth, that’s for sure. Of course, markets do over-react so share price drop may be too harsh.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. So we recommend checking out this free report showing consensus forecasts
We doubt SoFi Technologies shareholders are happy with the loss of 73% over twelve months. That falls short of the market, which lost 21%. There’s no doubt that’s a disappointment, but the stock may well have fared better in a stronger market. The share price decline has continued throughout the most recent three months, down 14%, suggesting an absence of enthusiasm from investors. Given the relatively short history of this stock, we’d remain pretty wary until we see some strong business performance. It’s always interesting to track share price performance over the longer term. But to understand SoFi Technologies better, we need to consider many other factors. To that end, you should be aware of the 3 warning signs we’ve spotted with SoFi Technologies .
SoFi Technologies is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
Related Quotes
Shares of e-commerce specialist, Shopify (NYSE: SHOP) shot up on Thursday, Oct. 27. The following day, shares of Shopify's largest competitor, Amazon (NASDAQ: AMZN), fell about 10% in response to a less-than-encouraging third-quarter earnings report. Can Shopify overcome competition from Amazon and continue reporting results that push its stock price higher?
In the U.S, a group of House and Senate Republicans have opposed the ruling Democratic Party's plan to fund Ukraine with seized Russian assets, The Washington Post reported on Oct.28, referring to people involved in the negotiations.
Auburn is finalizing a deal to hire Mississippi State athletic John Cohen to the same position for the SEC West rival school. The person spoke on condition of anonymity because a deal was not yet done. Cohen is in his seventh year as athletic director at Mississippi State after a long career as a successful baseball coach.
A look at the shareholders of Advanced Micro Devices, Inc. ( NASDAQ:AMD ) can tell us which group is most powerful. We…
The board of Webster Financial Corporation ( NYSE:WBS ) has announced that it will pay a dividend of $0.40 per share on…
In this article, we discuss the 10 best growth stocks to buy according to Marc Majzner’s Clearline Capital. If you want to read about some more stocks in the Majzner portfolio, go directly to 5 Best Growth Stocks to Buy According to Marc Majzner’s Clearline Capital. Marc G. Majzner launched Clearline Capital in February 2013 […]
Becky's pain began when she was 10 and she has decisions to make if she wants to have a baby.
Every investor in AeroVironment, Inc. ( NASDAQ:AVAV ) should be aware of the most powerful shareholder groups. And the…
Bill Mann: Brazil is one of the few countries whose currency has outperformed the U.S. dollar in calendar 2022. One quick note, Ricky and Bill recorded this conversation before Liz Truss resigned as Britain's prime minister.
Here are the Mississippi high school football playoff bracket for Class 2A, 3A and 4A first-round games.
In the last year, multiple insiders have substantially increased their holdings of Starbucks Corporation ( NASDAQ:SBUX…
Some PAR Technology Corporation ( NYSE:PAR ) shareholders are probably rather concerned to see the share price fall 31…
With a price-to-earnings (or "P/E") ratio of 26.1x Netflix, Inc. ( NASDAQ:NFLX ) may be sending very bearish signals at…
Everything you need to know for the final round in Bermuda.
Australia coach Dave Rennie said his overwhelming emotion was "relief" after the Wallabies ended a three-match losing streak with a 16-15 win over Scotland at Murrayfield on Saturday.
Today we will run through one way of estimating the intrinsic value of Pinterest, Inc. ( NYSE:PINS ) by taking the…
Barrett let reporters know that the #Texans' offensive success is dependent on how well his players are prepared.
Global Ship Lease (GSL) closed the most recent trading day at $17.28, moving +0.47% from the previous trading session.
Bitcoin (BTC) has become one of the most influential names in the crypto space.
Zscaler (ZS) closed the most recent trading day at $153.96, moving +0.12% from the previous trading session.