SoFi Technologies Inc (NASDAQ:SOFI) shares rebounded on Thursday, shaking off volatility from the previous session to close higher.
The fintech company’s shares had been caught in a wider market sell-off that particularly affected technology and growth stocks, extending a period of volatility for a stock that has surged approximately 140% since its April low.
SOFI shares are climbing with conviction. Check out the latest moves here.
What To Know: Despite the recent dip, the company has seen positive developments that bolster its long-term outlook. Analysts at JPMorgan and Citigroup recently raised their price targets for SoFi, with Citigroup reiterating a Buy rating.
This optimism follows a stellar second-quarter earnings report in late July, where SoFi announced a record revenue of $655.8 million, a 26% year-over-year increase, and a GAAP net income of $54.7 million. The strong performance, fueled by growth in loan originations and new members, led the company to raise its full-year revenue guidance.
Adding to the positive news, SoFi announced a partnership with Lightspark to facilitate international money transfers using the Bitcoin Lightning Network, expanding its service offerings.
However, the recent momentum was tempered by the company’s announcement of a public offering to raise about $1.5 billion through the sale of 72 million shares. This move, intended for general corporate purposes, sparked concerns about shareholder dilution and put immediate downward pressure on the stock price.
The narrative for SoFi remains split between its compelling growth story and the near-term headwinds of its recent capital raise, leaving Wall Street analysts divided on its future trajectory.
SOFI Price Action: According to data from Benzinga Pro, SoFi Technologies shares closed Thursday’s session higher by 3.60% to $23.33. The stock has a 52-week high of $25.11 and a 52-week low of $6.75.
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How To Buy SOFI Stock
By now you're likely curious about how to participate in the market for SoFi Technologies — be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
In the case of SoFi Technologies, which is trading at $23.14 at time of writing, $100 would buy you 4.32 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option or sell a call option at a strike price above where shares are currently trading — either way, it allows you to profit from the share price decline.
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