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SoFi shares have fallen 39% since January as headwinds mount
The fintech company is trading at 28.1 times forward earnings, despite reporting first quarter revenue growth of 43% year over year to $1.1 billion.
SoFi Technologies shares have declined 39% since January, according to Yahoo Finance, as the fintech faces multiple headwinds that could pressure the stock further.
The outlet points to a short-seller report by Muddy Waters making allegations about SoFi’s accounting practices, including claims that the company overstated loan values, alongside concerns that its financial results and guidance have not met market expectations.
Yahoo Finance also highlights valuation pressure, saying SoFi trades at 28.1 times forward earnings versus an average of 15.2 times for financial stocks.
Still, the outlet notes first quarter performance and growth indicators, citing total revenue up 43% year over year to $1.1 billion, earnings per share up 100% to $0.12, and membership rising 35% year over year to 14.7 million.