It’s been a difficult month for SoFi Technologies (NYSE:SOFI), but things may be about to shift in a new direction. The fintech startup is preparing to report earnings for the second quarter of 2024. SoFi has confirmed that on July 30, it will host its annual earnings call to discuss its performance over the past quarter, scheduled for at 8 a.m. Eastern. SOFI stock has struggled recently amid difficult market conditions.
However, if the upcoming earnings report shows growth on any key metrics, shares could start the rebound for which they are due.
What’s Happening With SOFI Stock
The SoFi earnings call is still a month away. As such, the volatility that the stock has been experiencing may not subside anytime too soon. SOFI stock is down 1% today after quite a bit of bouncing up and down. While it looks poised to close out the day in the red, it is still in the green for the past week, even after today’s turbulence.
As a stock, SOFI is somewhat unique. While it enjoys meme stock status, it isn’t only retail investors who seem enthusiastic about it. Popular CNBC host Jim Cramer recently stated that he would wait on the stock, but others have expressed more bullish takes. On June 26, Jefferies analyst John Hecht reiterated a “buy” rating for SOFI.
He isn’t the only one who expects the earnings report to spur growth. As InvestorPlace markets analyst Thomas Yeung reports, “Analysts expect the company to notch a 16% increase in revenues and flip from negative $0.05 earnings per share to positive $0.01. The company has been riding a wave of higher interest rates, which raises net interest income.”
In his analysis, Yeung raises another key point that investors shouldn’t disregard. SoFi can also offer valuable exposure to the fast-growing artificial intelligence (AI) market. In fact, it is one of the leading companies that is helping bring AI to retail banking. As he states, “This suggests SoFi could produce even better figures than expected.”
Why It Matters
Given SoFi’s recent struggles, it makes sense that some investors have soured on it. But As Yeung highlights, this innovative startup still has the type of potential that could catapult it to new heights. At $6.54 per share, it trades at low enough levels that traders who don’t mind some risk may see it as a tempting opportunity to stock up on a future winner. Right now, investors are hungry for AI stocks that haven’t yet begun to reach their full potential. SOFI stock sits at the center of that ground. If Wall Street is correct, the July 30 earnings call will be the catalyst it needs to usher in a long-overdue turnaround.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
