Is SOFI Stock ‘One Of The Easiest’ Longs? Why The Bull Case Is Still Intact According To 3 Analysts

• Oguz Erkan, founder and writer of Capitalist-Letters, said that SoFi Technologies is “one of the easiest longs in the market.” 
• Yiannis Zourmpanos, Director at Yiazou Galaxy Ventures, also noted that SOFI stock did not drop because of bad quarterly performance, but because of “beat-and-wait” results. 
• Retail sentiment on Stocktwits jumped from ‘bullish’ to ‘extremely bullish’ over the past 24 hours.

SoFi Technologies Inc. (SOFI) stock tumbled more than 15% on Wednesday and is headed for its worst monthly decline on record, after full-year guidance landed below market expectations. Still, several Wall Street analysts and investors are not yet squeamish.

Retail investors on Stocktwits also align with this outlook, as sentiment around SOFI stock jumped from ‘bullish’ to ‘extremely bullish’ over the past 24 hours, shortly after the company reported its first-quarter results.

What’s The Street View On SOFI?

Oguz Erkan, founder and writer of investment publication Capitalist-Letters, backed SoFi Technologies as “one of the easiest longs in the market” in a post on X.

Erkan said that even though the benchmark interest rates were “still relatively high,” SoFi was still going strong. The Federal Reserve on Wednesday kept key interest rates steady at 3.5% to 3.75% amid inflation concerns. “Imagine where  $SOFI growth could be if we got some cuts,” Erkan added.

Yiannis Zourmpanos, Director at Yiazou Galaxy Ventures, also noted that SOFI stock did not drop because of weak quarterly performance, but because of “beat-and-wait” results, while the market expected an outlook upgrade.

The financial services firm posted 43% growth in quarterly revenue, which came in at $1.1 billion, beating expectations. SoFi’s earnings of $0.12 per share were in line with consensus estimates.

However, for the upcoming quarter, the company said it expected revenue growth of about 30% and an adjusted net income margin of around 12% to 13%, both of which came in below expectations.

“Not a disaster. Not clean either. If Galileo rebounds, dip looks cheap. If not, multiple goes lower,” Zourmpanos said in a post on X, referring to SoFi's B2B financial services platform that processes payments for other fintechs. He also disclosed that he had exited his position in the company when it was trading at $30, adding that it was “not loss of faith, just better setups and locking profits.”

Meanwhile, Shay Boloor, chief market strategist at Futrum Equities, had also said earlier that SoFi stock was down despite its results as the market reacted to “a guidance raise that didn’t come.” Subsequently, in a post on X, he highlighted SoFi’s strong member growth and future outlook, adding that the company was “positioning itself as the digital on-ramp where banking, investing and digital assets converge.”

The company reported adding 1.1 million members, bringing the total to a record 14.7 million, a 35% increase from a year ago. The company’s loan originations in the quarter also grew to a record $12.2 billion, up almost $1.7 billion from the previous quarter.

How Much Upside Does Wall Street See For SOFI?

According to data from Koyfin, 24 analysts covering SOFI have a 12-month average price target of $23.48, representing an upside of more than 51% from its previous close.

Eight of these analysts have a ‘Buy’ or higher rating on the company’s shares, while 12 have a ‘Hold’ rating. The rest rate SOFI stock ‘Sell’ or lower.

What SOFI Retail Traders Feel

On Stocktwits, retail chatter about SOFI stock jumped from ‘high’ to ‘extremely high,’ with many traders calling for a buy-the-dip.

One bullish user said that they had just quadrupled their position.

Another bullish user called it “an undervalued gem,” adding that it “Should be at a 35-40 P/E. Not a 25 P/E where it is now.”

SOFI stock recovered in overnight trading, up about 2% at the time of writing. Meanwhile, it has gained nearly 17% in the last year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.