With inflation remaining elevated, the Fed will likely keep raising interest rates aggressively, and financial stocks usually benefit from a rising interest rate environment. SoFi Technologies, Inc. (SOFI) has jumped sharply over the past few months after it reported strong fourth-quarter results and is currently trading at an expensive valuation. For this and the other reasons explained throughout this article, I think it would be wise to avoid this stock now.
SOFI has been garnering investors’ attention after its fourth-quarter results. The personal finance fintech company’s loss per share came below analyst estimates, and its revenue beat the consensus estimate by 4.1%. The company’s adjusted net revenue in the fourth quarter came in 4.2% above its guidance range high of $425 million, and its adjusted EBITDA came $23 million above the high-end of its guidance.
