SoFi Technologies Inc Pre-earnings Analysis
Chart done on daily timeframe. SoFi Technologies is an online financial company that hit the ground running in the last decade and has become a familiar name thanks to their sponsorship of the SoFi Stadium in Los Angeles. The company provides online banking and loan solutions to consumers and has managed to take a chunk of the industry to establish their online presence. The company has more than tripled its annual revenue from 2020 at 751M to 2023 at 2.91B, and they finally managed to post a profitable quarter in Q4 2023 despite the decline in the housing market. Unlike traditional brick and mortar banks, SoFi has the edge of being strictly online, which is less overhead for them and can boost their profit margins in the long run. And although small and young, the company has managed to grow a positive free cash reserve of about 430M.
Come their earnings next week, investors are expecting another profitable quarter of about 0.02 EPS along with rising revenue. If SoFi can pull off two back to back profitable quarters then it will set it up for a bullish move. Our target is 9.00-11.00.
Option chain analysis:
Options expiring on May 3rd for SoFi currently reflect an implied volatility reading of 144%, which translates to about a $1.26 move from the underlying stock. The direction will depend on the earnings results.