SoFi Technologies is due to report third-quarter results on Oct. 27. The Motley Fool calls the stock a long-term buy after a 34% year-to-date decline, citing a 35% rise in members to a record 15.8 million; it notes shares could fall after earnings.
SoFi’s latest quarter also saw products rise 42% to a record 24.4 million. Its 2022 bank charter lets it take deposits and fund loans itself, reducing fees paid to partner banks. Q2 operating margin improved to 16.9% from 13.1% a year earlier, though marketing, customer acquisition and technology costs remain high.
The stock trades at 21 times forward earnings, according to the article. It attributes part of the sell-off to revenue declines in SoFi’s banking-as-a-service platform after major client Chime left at the end of last year. SoFi raised full-year revenue guidance to imply 32%–35% growth but left its earnings outlook unchanged, which the article says raised concerns that expenses may be elevated.
