SoFi Technologies (NASDAQ:SOFI) appears to be riding high after a stellar 2024. The online lender revealed today that it finalized a $525 million personal loan securitization agreement during Q4 2024 with funds and accounts under the management of PGIM Fixed Income. This follows a $350 million investment from PGIM earlier in May 2024.
Stay Ahead of the Market:
- Discover outperforming stocks and invest smarter with Top Smart Score Stocks
- Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener
The announcement sparked a 5% surge in SoFi’s stock on Thursday, pushing its 12-month gain to an impressive 107%.
In addition to its financial milestones, SoFi recently celebrated surpassing 10 million members – a testament to its growing appeal and strategic success.
With a more business-friendly administration set to take office next week, could SoFi be on the cusp of yet another significant rally?
Not according to one top investor known by the pseudonym JR Research, who believes that it is too late to jump on board the SoFi train.
“The initial post-Trump euphoria seems to have given way to worries about inflation, tariffs-induced blowback risks, possibly retaliatory trade wars, or even unanticipated rate hikes, and other unforeseen geopolitical uncertainties that could affect SOFI’s growth opportunities,” asserts the 5-star investor who sits in the top 2% of TipRanks’ stock pros.
JR explains that high-growth stocks such as SoFi are susceptible to fears of inflation and tariffs. “The market conditions seem to have turned more ominous for SOFI,” JR adds.
Moreover, the fact that the majority of SoFi shares are owned by retail investors could increase the potential volatility, as these investors might be more reactionary and eager to take profits due to “fear-induced narratives that they read about in the financial media.”
While JR is optimistic regarding SoFi’s long-term prospects, the investor caution that buying at current elevated levels could be a risky move.
“This isn’t the time to return to try to grab hold of more SOFI shares,” JR advises, rating the stock as a Hold (i.e. Neutral) (To view JR Research’s track record, click here)
This seems to be the prevailing view on Wall Street as well. With 6 Buy, 5 Hold, and 4 Sell ratings, SoFi holds a consensus Hold (i.e. Neutral) rating. Its 12-month average price target of $13.19 would yield 19% losses in the coming year. (See SOFI stock forecast)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
