SoFi stock price forecast and Q1 earnings preview

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on Apr 25, 2023
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  • SoFi share price has made a bearish breakout recently.
  • The company will publish its financial results on Monday.
  • Analysts expect that the company’s revenue jumped to $437M in Q1.

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SoFi (NASDAQ: SOFI) stock price has moved sideways in the past few days as investors wait for the company’s earnings scheduled for May 1. The stock was trading at $5.76, which was a few points below this month’s high of $6.28. It has fallen by 30% below the year-to-date high.

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SoFi earnings preview

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SoFi, the fintech giant, will publish its financial results on Monday. These results will provide more information about the company’s performance in the first quarter. In the previous quarter, the company said that its revenue jumped by 58% in Q4 to $558 million. This increase was better than what analysts were expecting. 

Further, its adjusted EBITDA jumped to $70 million. For the full year, the company said that its net revenue came in at $1.58 billion. It grew its banking license to $7.3 billion while the number of members jumped by 1.8 million to 5.2 million.

Analysts expect that the company’s revenue jumped to $437 million in the first quarter. If this is correct, the revenue will be higher than the $321 million that it made in the same quarter in 2022. Its loss per share is expected to have come in at 8 cents. 

Analysts believe that SoFi will continue growing its business in the coming years, thanks to its well-diversified business. Precisely, they expect that the company’s revenue will soar to $2.88 billion in 2025 and then double to $6.9 billion by 2030.

Analysts are upbeat about SoFi, with some calling it the AWS of the financial industry. That’s because of the strength of the company’s business, which includes a banking charter, Galileo, and Technisys. Galileo, which SoFi acquired for $1.2 billion, provides API for digital banking. 

Technisys, on the other hand, provides a cloud-native multi-core banking platform. Its banking charter makes it possible for the company to use deposits to lend to customers. Deposits are cheaper financing sources.

SoFi stock price forecast

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SOFi chart by TradingView

Is it safe to buy SoFi stock? The 4H chart shows that the SoFi share price has been in a consolidation phase recently. It has formed an ascending channel that is shown in red. And today, the shares managed to move below the lower side of this channel.

The stock remains below the 25-day and 50-day exponential moving averages while the RSI has pointed downwards. Therefore, there is a likelihood that the stock will drop and retest the support at $5.13 before or after the earnings on Monday. This price is about 125 below the current level.

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