SoFi Technologies (SOFI) Stock

Read our Advertiser Disclosure.
Contributor, Benzinga
August 23, 2021
$8.17
0.01[0.12%]
Last update: 7:59PM (Delayed 15-Minutes)
Get Real Time Here
Open8.170Close8.170
Vol / Avg.27.448M / 50.859MMkt Cap7.973B
Day Range8.110 - 8.37052 Wk Range4.450 - 11.700

Shares of SoFi Technologies have been quite volatile lately considering all of the hype around SOFI. The 52-week moving range was $11.80 to $28.26, and the 50-day moving average was 18.020. 

On August 13th, 2021, SOFI reported earnings of reported sales of $237.22 million, which beat the consensus estimate of $231 million but missed on earnings per share, which came in at a loss of $0.48 cents, down from a loss of 3 cents the year prior. Capital from investors, then, was helping the firm grow as expected.

With that recent news, it drooped SOFI by almost a full $3 per share. It had a 1-week trading average of $16.50. SOFI was trending in almost every big chat such as Benzinga Pro chat, Discord, Fintwit and a few others. This was one of the most popular options stocks as it is predictable when reading the graph.

SoFi Technologies is a fintech company that offers a multitude of digital financial services to customers. It uses a 3-step process to attract customers: First is Lending. SOFI uses Lending to draw in customer as it has one of the lowest rates to offer. Second is Financial services. SOFI also offers the best financial services. As SOFI have many articles and professional helping educate Home Ownership, Student loans, and investing. Lastly, is Financial technology. SOFI is advancing the way business is done virtually. That is one of the main items SOFI specializes in. The company plans to change financial services to become the one-stop-shop for digital services.  

If you’re interested in a one-of-a-kind company that seems to be leading the charge in this sector, learn how to buy SoFi Technologies below. Remember, the stock market often demands continued growth, and SoFi is looking into the real estate market, mortgages, other types of loans, credit cards, bank accounts and additional services to offer investors the results they deserve.

How to Buy SoFi Technologies (SOFI) stock

This stock has shown great volatility with its recent news. SOFI seemed to be a part of a big pump and dump as the earnings were released. The earnings in Q3 2021 that were reported were positive yet it dropped almost 20% after hours. 

SoFi is in a great-demand zone currently as it fell below support levels — poor performance — and if it falls more you could quickly see SOFI in the low $12 range. The upper support seems to be around $13.22. Options have been trending upward as many would like to see this back up to the $17 range. 

Volume has been consistently up and it does not look like it’s on a downward trend yet. The average 100-day volume is around 16.89 million shares traded per day. The last few days the average volume has been 11 million shares being traded. 

  1. Pick a brokerage. Before you can invest in any company, you need to choose a brokerage to execute your trades. Now that most brokers have moved away from a commission-based model, you can purchase SoFi shares free of charge — regardless of which broker you choose.

Define your strategy, then choose a brokerage that offers the necessary tools to carry out your investing strategy. If you need practice before putting your hard-earned money to work, select a brokerage that offers paper trading

Finally, pay attention to promotional offers from brokerages. You may end up with bonus funds to trade with, a free stock for you and your friends, or numerous other potential benefits of investing in technology companies. But, you must remember that capital from investors is supposed to fuel future growth. If you feel the underlying public offering isn’t performing, you may need to move to another preferred stock.

  1. Decide how many shares you want. Once you select a broker, you need to decide how many shares of SOFI you want to buy. Some factors to consider include your age, time horizon, risk tolerance, and reasonable expectations for the future of the company. 

Investing more than a small percentage of your funds into a single company is extremely risky. Before placing a buy order with your broker, determine how much money you want to risk, when you will sell on the upside to take profits and when you will sell on the downside. One option is a stop-loss order to protect your funds. Market participants often try these financial instruments because they assume the public offering will continue to grow over many, many years.

By looking at the chart and answering these important questions, you can find a favorable price point and purchase SOFI.

  1. Choose your order type. After determining how many shares of SOFI you want to buy, your job as an investor is not complete. You need to decide which order type to use. You can buy additional shares later—so, it’s best to consider how much you can reasonably afford today.

The most basic order type is the market order, which fills your order at the current market price. This order type is best used when you are buying a stock with low volatility and trying to do it instantly. 

If you want to better define your risk, you should use a limit order instead, which allows you to purchase shares at a set price or lower. When trading an extremely volatile stock like SOFI, it may be beneficial to use a limit order because this prevents your buy order from being filled at a price point that results in being down in the stock from the very beginning.

  1. Execute your trade. After you’ve determined the appropriate order type to use, all you need to do is submit your buy order to your broker and wait for your order to process. Once the order fills, your shares of SOFI should appear in your brokerage account. 
img_611ff7c2aa319
Benzinga Pro on 8/18/2021

Pros to Buying SOFI

  • Community-backed stock: In the financial group chats, this seems to be the most talked-about stock in recent weeks. With the overly demanding support and growing chat, a large number of people invested in this stock. Yes, it might have been a slight pump and dumb, however, it could again jump up. 
  • High option movement: Benzinga Pro subscriptions offer an advanced options newsletter, in which SOFI has been trending in the last week. Looking at the bullish and bear ratio — it seems to be very bullish now. 

Con to Buying SOFI

  • Potential downtrend: As previously mentioned, SOFI is in the demand zone currently. If SOFI keeps falling below the current levels it has the potential to drop to $12. If that happens it will be down around 30% in 1 week — a significant loss. 

Bullish on SoFi?

Many traders in financial group chats are picking this next stock for a potential squeeze opportunity. Because the sweeps for options have been bullish, people believe and have faith in this company. It seems to have good financials and a growing product looking for advancement. This social finance platform offers so many loan options that you can use it to change your financial future, but its stock could be hit by rate hikes.

Frequently Asked Questions

Q

Is SOFI a buy right now?

A

Sofi is nearing its bottom support line, it’s in desperate trouble if it does not retain stronger support. This stock does have potential to go back to all time highs if it gets good news. With that being said, SOFI should be added to a watchlist to watch for these key levels.