SoFi Introduces No-Fee Cryptocurrency Purchase Feature for Members

Online personal finance company SoFi Technologies, Inc. (NASDAQ: SOFI) recently announced a new feature for its members investing in cryptocurrency. With this move, the members will be able to invest part of every direct deposit into cryptocurrency with zero fees.

Following the news, shares of the company rose 1.6% on Tuesday. Further, the stock gained slightly to close at $9.69 in the extended trading session.

SoFi has launched this feature so that members can automate their cryptocurrency purchases with each paycheck for no purchase fee, either investing by dollar amount or percentage of their deposit, into one of 30 coins. The feature is already active for members with both a SoFi Invest crypto account and SoFi Checking and Savings account.

The company has also launched an online educational center to educate investors who are new to the world of cryptocurrency.

Management Commentary

The CEO of SoFi, Anthony Noto, said, “Crypto investing is rising rapidly. In the last year alone, SoFi doubled the number of investors setting up automatic, recurring crypto purchases. By adding the ability for members to automate crypto purchases right from their paycheck, we’re making it easier than ever for our members to customize how they manage their spending, saving, and investing all in one place to help them get their money right.”

Stock Rating

Recently, Morgan Stanley analyst Betsy Graseck downgraded the stock to Hold from Buy with a price target of $10, which implies upside potential of 2.9% from current levels.

According to the analyst, another extension of the federal student loan moratorium can hurt the margins of the company.

The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on six Buys and six Holds. The average SoFi price target of $16.85 implies that the stock has upside potential of 73.4% from current levels. Shares have declined 45.7% over the past year.

Positive Sentiment

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on SOFI, as 5.6% of portfolios tracked by TipRanks increased their exposure to SOFI stock over the past 30 days.

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