Cathie Wood's ARK Investment Buys $6.8M Worth Of SOFI: Retail Calls It ‘Dead Stock’

• Through the ARK Innovation ETF, the firm purchased 362,911 SOFI shares worth $6.1 million. 
• The firm bought 42,809 shares of SOFI via the ARK Blockchain & Fintech Innovation ETF, worth about $717,100. 
• Despite Wood’s purchase, retail traders are ‘bearish’ on SOFI stock.

Cathie Wood’s ARK Investment Management purchased a significant stake in SoFi Technologies Inc. (SOFI) as the company’s shares have declined about 36% this year. 

The asset management firm bought shares worth $6.8 million across two of its exchange-traded funds. However, retail investors are ‘bearish’ on the stock despite Wood’s confidence in the company. 

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ARK Investment Goes Big On SOFI Stock

Through the ARK Innovation ETF (ARKK), the firm purchased 362,911 SOFI shares worth $6.1 million. 

Meanwhile, the firm bought 42,809 shares of SOFI via the ARK Blockchain & Fintech Innovation ETF (ARKF), worth about $717,100. 

Retail Is Not Convinced 

Despite Wood’s purchase of SOFI stock, retail traders are ‘bearish’ on the stock. 

One user said, “$SOFI this is dead stock.”

Another user said, “$SOFI Cathie Wood makes the most terrible picks!”

However, a third user said, “$SOFI people are strongly underestimating $SOFI's long-term potential. The stock is being completely ignored right now, while valuation is the most attractive it's ever been. The next leg higher will take us into the $50 range. I believe this is a $100B company by 2030.”

SOFI Valuation 

SOFI stock has a forward price-to-earnings ratio of 20x, near its all-time low levels. 

However, it remains high compared to its peers. Upstart Holdings Inc. (UPST) has a forward multiple of 8.2x, while Affirm Holdings Inc. (AFRM) has 16.1x, according to Koyfin. 

Wall Street Stance On SOFI

Meanwhile, the 12-month average price target on SOFI stock, per Koyfin, is $20.84, implying about 24.4% upside from its last close. 

Of the 25 analysts covering the stock, 11 have a ‘Buy’ or higher rating, while 10 have a ‘Hold’ rating. The remaining four analysts have a ‘Sell’ or lower rating on the shares. 

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