SoFi stock retreated after the fintech company posted strong results, but an analyst indicated that key segment revenue growth was weak.
SoFi's Stock Performance
SoFi stock dropped by more than 9% to $10.11 in morning trades despite a strong earnings report, which showcased a net income of 5 cents per share and a 30% year-over-year revenue growth, reaching $697 million.
Analyst Insights
Deutsche Bank analyst Mark DeVries highlighted the fintech leader's growth in the financial services sector while noting that revenue growth in the technology segment fell below expectations, prompting concerns about future growth.
Future Projections
SoFi revised its guidance for adjusted net revenue upward to between $2.535 billion and $2.550 billion, exceeding previous forecasts, which the CEO cited as indicative of the company's strong growth trajectory.
