Morgan Stanley cuts rating on SoFi shares
- SoFi stock gets first downgrade after earnings
- Morgan Stanley analysts slash rating on shares to Underweight
- Concerns around SoFi’s guidance prompt downgrade
- SoFi expects per-share earnings of 7 cents to 8 cents in 2024
- Company forecasts 20% to 25% compound revenue growth from 2023 to 2026
SoFi Technologies reported its first quarterly profit, but Morgan Stanley analysts have downgraded the stock due to concerns about the company’s guidance. The analysts believe that the stock is overpriced and that the top-line growth outlook for 2024 is worsening. SoFi expects per-share earnings of 7 cents to 8 cents in 2024 and forecasts 20% to 25% compound revenue growth from 2023 to 2026. Achieving the earnings range in 2026 will depend on either reaccelerating top-line growth or reducing expenses. SoFi shares have been volatile this week, with a drop on Tuesday and Wednesday following a gain on Monday.
Public Companies: SoFi Technologies (SOFI)
Private Companies: undefined
Key People: Jeffrey Adelson (Analyst), Ayokunle Fagbemi (Analyst)
Factuality Level: 7
Justification: The article provides information about SoFi Technologies’ first quarterly profit and the concerns raised by Morgan Stanley analysts regarding the company’s guidance. The article includes quotes from the analysts and mentions the stock price movement. However, the article lacks in-depth analysis and does not provide a balanced perspective from other analysts or industry experts. It also does not provide sufficient context about SoFi’s business or the factors influencing its financial performance. Overall, while the article presents some factual information, it lacks comprehensive coverage and analysis.
Noise Level: 4
Justification: The article provides some analysis of SoFi’s financial performance and forecasts, but it lacks in-depth insights and evidence to support its claims. It focuses more on the reactions of Morgan Stanley analysts and the fluctuation of SoFi’s stock price, which is not directly related to the long-term trends or antifragility of the company.
Financial Relevance: Yes
Financial Markets Impacted: SoFi Technologies
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to the financial performance and forecasts of SoFi Technologies, a financial technology company. There is no mention of an extreme event.
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