SoFi Reports Record Performance but Stock Drops Amid Profit Outlook Concerns
Shares of SoFi Technologies (NASDAQ: SOFI) fell nearly 9% on Wednesday despite reporting a record second-quarter performance. The company achieved significant growth in net revenue, loan originations, and member count, with tangible book value rising by 80% to $9.5 billion year-over-year. Despite these strong results, the stock declined due to concerns over unchanged profit guidance amid higher-than-expected revenue projections. Management raised its full-year adjusted net revenue forecast but maintained previous EBITDA and earnings per share targets, signaling that additional revenue may not translate into increased profits in the near term. This led investors to reassess SoFi’s valuation. The stock is currently trading at about 2 times tangible book value, significantly lower than earlier this year when it reached a high of $32.73 and traded at around 4.5 times current tangible book value per share.
Topics: revenue growth sofi stock price reaction tangible book value