Don’t Be Fooled by the Q2 Bounce, 3 Reasons Why SOFI Stock Is NOT a Buy
SoFi Technologies stock has failed to rebound. While the Nasdaq and S&P500 enjoyed a great rally at the end of Q1, SOFI shares had plummeted 26.6% over the same period.The poor share price performance is because of a worsening macroeconomic picture and SoFi’s decision to raise $750 million in convertible debt capital. SOFI has outperformed the broad market indices, appreciating over 4% in Q2. SOFI is expected to underperform the market in the coming months. Here are three reasons SOFI isn’t a buy.U.S. equities had a terrible trading session last week. The Nasdaq fell 3.55%, while the S&P500 had fallen 3.05%. On a year-to-date basis, the Nasdaq and S&P500 have only risen 3.93% and 4.14%, respectively, as of last Friday. The reason is interest rates.After two months of higher-than-expected CPI reports, Federal Reserve officials, including Fed chairman Jerome Powell have not shied away from signaling interest rates may have to be higher for longer.Not everyone has a doom-and-gloom opinio