SoFi Technologies (SOFI) Earnings Release Analysis 31 Jul 2023 PreMarket
$SoFi Technologies Inc.(SOFI)$ is scheduled to release its Q2 2023 result before market open on Monday (31 July 23).
SoFi have been through the blocking of student debt repayments and also their loan loss reporting but their stock price have rallied above $10.
Despite the negative EPS last quarter, they have beaten EPS estimate for the last 2 quarters. I would be sharing how I would look at the earnings release from SoFi today (31 Jul 23).
SoFi Technologies (SOFI) Earnings Data
From what we have seen in previous quarters, I foresee SoFi EPS to be better than forecast and could even be in the low positive range of 0.03 to 0.05.
This is because I would think that U.S. economic data has shown consumer confidence coming back and the loan repayment capability of student loans should have improved.
SoFi Technologies (SOFI) Earnings History
Based on the last 2 quarters EPS performance, SoFi has beat estimate by more than 4% so considering this quarter, I would believe it could be in the range of -0.03 to 0.03 (positive).
This quarter might be SoFi reporting its profitability.
SoFi Technologies (SOFI) Year-To-Date Earnings
SoFi has given a more than 100% growth YTD and for the long term, I am bullish on its future growth as well.
The range of products offered would be in demand and I would foresee profitability from them very soon.
SoFi Technologies (SOFI) Financial Overview
If we look at the drop in revenue from the last quarter (Q1) I believe Q2 we should be seeing a huge improvement.
The thing that I would be looking out for is how they would be deploying their free cash flow. Will there be more product and services offering on the way?
Or are there plans for more acquisitions?
SoFi Technologies (SOFI) Sentiment Analysis
Investors have been very positive on SoFi as we can see that investors have been increasing their holdings 0.9% (last 7 days) and 5.6% (last 30 days).
This would further increase before the earnings and after the earnings, especially if profitability is reported.
Technical Analysis – Simple Moving Averages (SMA)
SoFi have enjoyed a upward Bull trend. If SoFi report a positive EPS, it could get stronger.
Likewise if SoFi report a further loss, expect it to go to a bear trend.
Technical Analysis – Relative Strength Index (RSI)
RSI momentum is good and it is moving towards the oversold region.
This suggest that we might be seeing more Buying activities, but I would monitor the price and volume activities closely today (31 Jul) after its earnings release.
I will look for any potential reversal with SAR.
Technical Analysis – Average Directional Index (ADX)
ADX is between 20 and 40 indicate a developing trend. +DI is above -DI by a wide margin, this suggest that this developing is a strong bullish upwards move.
I would expect the trend to go into a strong trend when SoFi report its profitability. Else we might see this developing trend getting weaker.
Possibility of going into a bearish weak trend might not be in near term.
Technical Analysis – Parabolic SAR (SAR)
There is no reversal for SoFi recently. But do note that the price is moving close to the dots.
If the earnings report is very positive, we would see a very strong bullish upwards move, else, we might see SoFi going into a potential bearish reversal.
Summary
From what I have shared and observed, I would expect SoFi to report a positive earnings and profitability.
This would further improve its current bullish trend and hopefully we can see a strong upward move. I do not have any price target to trade.
I will be monitoring the price action when it start pre-market trading on 31 Jul 23.
Appreciate if you could share your thoughts in the comment section whether you think SoFi will post a better than estimates EPS?
@TigerStars @Daily_Discussion @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.
Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.
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Paypal should buy SOFI. Paypal has ~435 Million users but no bank charter. SOFI has nowhere near that customer base but does have a bank charter. Imagine if SOFI got ~435 Million potential new customers overnight.
I think if there is 6- 8 M shares traded during pre market.. would be a fantastic sign for SOFI open.. and see 85-120M total volume for the day.. need about 2x the average volume to get this to run hard..
Needs to fill the gap at $8.05
Then will go back to the moon.
The student loans may be forgiven. We are still waiting. If this passes. The stock would drop tremendously back to 4.00 easy.
Amazing to finish at the $9.50 options’ level.
Retail Investors have a cult like love for SOFI, Wall Street remains unconvinced.
Now would be a good time buy more shares. The DCA train has left the station! Toot toot!! 🚂
Is SOFI still in business ? This is a losing money company , I thought it went bankrupt !
The 7-8.00 gaps must fill before we can get any significant moves. Next week we may fill them.
The earnings report is expected to be positive for SoFi. $SoFi Technologies Inc.(SOFI)$
Don’t sell any calls and be patient. It will pay off in the long run.
Next week be a better week for sure!
Hope this squeeze could go to 13 today