SoFi will likely do good amidst the ‘volatility’: CEO Anthony Noto
- CEO Noto says need for financial services go up in times of volatility.
- He reiterated that SoFi has been taking share from traditional banks.
- Shares of the personal finance company are down nearly 65% YTD.
SoFi Technologies Inc (NASDAQ: SOFI) has taken quite a beating in 2022, now down nearly 65% year-to-date. Still, CEO Anthony Noto says the personal finance company is well-positioned to benefit from the rising rates.
CEO Noto’s remarks on a CNBC interview
There’s been unrest in the equity market for months as investors continue to grapple with the prospects of a soft landing. Explaining how that helps SoFi, Noto said on an exclusive CNBC interview:
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In periods of uncertainty and volatility, need for financial services goes up. So, in a higher rate environment, we’re seeing really strong demand. We’re looking at a vast amount of economic data to make sure that we’re green across the board.
He reiterated the guidance for a 50% year-on-year growth in revenue to $1.50 billion in 2022. Noto has been loading up on shares of SoFi Technologies this year – another sign of his confidence in the company’s future.
SoFi Technologies is expanding market share
Noto is also convinced the changes President Biden proposed to student loan will likely be a “net positive” for the Nasdaq-listed company that’s lately been expanding its market share. He added:
We’re offering 1.5% interest rate on our checking account; pretty much unmatched. We are thriving in this environment because we’re taking share from traditional banks and that our members are doing more and more with us every day.
In May, SoFi Technologies reported better-than-expected results for its fiscal first quarter. Wall Street, on average, sees a more than 70% upside in the stock from here.