From Nasdaq: 2024-05-13 07:13:00

SoFi Technologies reported strong Q1 earnings with a dip in lending business but growth in newer revenue streams. Despite stock falling by 10%, the company beat estimates and raised annual guidance. SoFi’s shift towards financial services and technology segments is expected to drive growth and make 2024 a transition year.
Investors are concerned about loan volumes and credit quality, as NCO ratio increased in Q1. SoFi projects a decline in lending revenue due to economic uncertainty. However, the company posted its second consecutive quarterly profit, raised revenue forecast, and aims to become the “AWS of fintech” with technology acquisitions.
SoFi’s pivot to a one-stop financial services shop has shown promising results with strong growth in its financial services segment. The acquisition of Golden Pacific Bancorp enabled SoFi to offer a range of financial products and benefit from higher interest rates. Despite concerns over valuation, SoFi’s growth potential and customer attraction make it a stock to watch for long-term investors.



Read more at Nasdaq: SoFi Raised Its Earnings Forecast for 2024. Here’s Why Its Growth Is So Strong.