SoFi Stock News – SoFi Partners with Pagaya
Latest SoFi stock news – Earlier today, Pagaya (“a financial technology company that enables financial institutions to expand access to more customers through its artificial intelligence network”) announced that they have entered into a partnership with SoFi. The partnership will allow SoFi to expand its offerings to include Pagaya’s proprietary AI, infrastructure and technology.
Gal Krubiner, Co-Founder and CEO of Pagaya had this to say…
“Working with a company such as SoFi, we are able to apply our artificial intelligence in a way to not only help SoFi extend capital to more people, but do so in a way to create less risk for our partner. This creates a symbiotic, win-win-win ecosystem across all parties.”
Although SoFi (NASDAQ: SOFI) just became a publicly traded company in June, it’s one of the most exciting growth stories to watch. Shares are up over 25% in just a month.
The company came to market through a SPAC merger with the IPOE ticker. The IPOE merger was highly regarded as a chance for investors to get in with one of the most innovative companies.
Now SoFi stock is being closely followed by some of the top market analysts. In fact, Morgan Stanley’s Betsey Graseck just started coverage on SoFi with a $25 price target. The new price target suggests nearly 20% upside from its current price of $20.70 per share.
Will SoFi stock grow into its high expectations? Keep reading to discover the top SoFi stock news that can push share prices higher.
More Big Opportunities for SoFi Stock
The personal finance industry is full of similar product offerings and copycat apps. And this is where SoFi has a chance to outshine the competition.
Student Loans
Student loans are the fastest-growing source of debt in U.S households, quickly outpacing other sources like mortgages and car loans since 2007. Total student debt in the U.S is now $1.7 trillion.
As the company progresses, one of its biggest areas of opportunity will be student loan refinancing. Despite not having to make a payment for almost two years, borrowers are quickly approaching the deadline.
The Department of Education paused loan payments to provide temporary relief to help lessen the effects Covid19 had on the economy. But, the Act ends on January 31st, 2022.
After the deadline, payments will resume. And when this happens, it could come as a shock to many. As people look to fix this problem, SoFi will be one of the leading options.
Millennial Mortgages
Not only does SoFi offer student loan services, but it also provides home loans. According to the National Association of Realtors 2020 homebuyers report, millennial’s made up the greatest share of home buyers.
With millennials now making up 38% of homebuyers, the process is starting to look different. And this is where SoFi may have the advantage.
SoFi’s all-in-one platform makes it easy for users to scroll through and find different loan options.
More SoFi stock news ahead…
SoFi Stock’s Advantage – The Right Business Model
SoFi has taken the user experience to another level with its easy-to-use platform, making it easy for younger generations to take control of their finances. And now their partnership with Pagaya should only strengthen their overall business objectives.
Right when you open the app, SoFi shows you all it has to offer. In addition to the services mention above, it offers
- Investing
- Personal loans
- Banking services
- Credit cards
- Insurance
- Credit monitoring
- Budgeting tools
- And auto loan refinancing
With SoFi, users can access essentially any financial service needed. Not only that, but each of SoFi’s products is helping to boost each other’s usage. For example, if someone signs up for crypto investing but then see’s they also offer insurance, they may be more willing to use the same provider.
“Fastest Growth Story in Consumer Finance”
When Morgan Stanley analyst Betsey Graseck started covering SoFi stock news, she also had a positive outlook. She even went as far as calling SoFi the “fastest growth story in consumer finance.”
The comments come as SoFi’s earnings report shows the company is growing in many key areas. Listed below are a few highlights.
- Memberships grew for the 8th straight quarter to 2.6 million, showing 113% YOY growth.
- Total products grew 123% YOY to $3.7 million.
- Record adjusted net revenue of $237.2 million, growing 74% from last year.
- Total net revenue grew over 100% to $231.2 million.
Despite the strong showing from SoFi, the company still posted a loss of $165.3 million for the quarter. Additionally, all three areas of business saw decent growth when compared to the previous year.
What Does the latest SoFi Stock News Mean For Investors?
Since announcement of the Pagaya partnership, shares have risen more than 8% today. The good news for SoFi investors is that the company is expanding at a quick rate. Everything from members to total products is growing consistently. And this partnership is just another example of that growth.
On top of this, SoFi’s largest revenue stream is currently lagging due to the pause on student loan payments. When the company starts realizing this revenue again, it could help boost SoFi stock and its earnings outlook.
All in all, it seems SoFi is in an ideal position to continue its dominant growth. With several important events coming up, SoFi stock investors are ready for the company to take it to new heights.
With that said, SoFi is down 40% from its high of $28.26 earlier this year when news broke that SoFi was going public through a merger with IPOE ticker. The dip could present a buying opportunity for investors before student loan payments come due again.
SoFi Stock News – Forecasting Growth
To sum things up, the latest SoFi stock news is promising for the young finance company. In the firm’s short time as a public company, it is making a big impact on investors.
In this day and age, with over half of U.S adults now using mobile banking at least weekly, SoFi is in the prime position to take advantage of the transition. Additionally, SoFi’s ease of use and enhanced UX give it the upper hand over its competition.
With the company’s addition of Golden Pacific Bankcorp, SoFi is gearing up to expand its offerings further. The move puts them in the middle of a massive banking industry and in a better position to turn a profit.
If the government extends the CARES Act, it could put further pressure on the stock. But, SoFi’s other segments are also growing, and eventually, the loans will come due. In the long run, SoFi stock looks like a promising bet for investors looking for growth opportunities.
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About Pete Johnson
Pete Johnson is an experienced financial writer and content creator who specializes in equity research and derivatives. He has over ten years of personal investing experience. Digging through 10-K forms and finding hidden gems is his favorite pastime. When Pete isn’t researching stocks or writing, you can find him enjoying the outdoors or working up a sweat exercising.