SoFi Technologies is a young company offering loan services and insurance products for renters, owners of apartments, and cars through its platform. The price of its stock from July to November popped to $23.29, after which it started to dip. The current price is $11.1, which is 12.7% less than 5 days ago. The recent weakness in the stock was likely driven by the company’s earnings forecast. SoFi said it expects revenue growth in the range of $272 million and $282 million, which represents only a small increase from last quarter. It’s profitable for the investors when the revenue grows well.
Interest rate hikes have been discussed for a long time. According to Bank Of America, rates could rise 7 times, which is very worrying for many. However, SoFi Technologies, along with companies such as Applied Materials and Airbnb, could benefit. It’s known that when interest rates rise, only banks remain not in the red. SoFi is not a bank, but its acquisition of Golden Pacific Bank recently received regulatory approval. Such an acquisition won’t only reduce bank costs but will make the company more competitive.