With a YTD loss of 29.3%, fintech name SoFi Technologies (SOFI) is among the worst-performing stocks of the year so far, and is underperforming the S&P 500 Index ($SPX) by a wide margin. Previously, SOFI stock rose nearly 116% in 2023 to notch its best-ever year since its 2021 listing.
Like almost all other companies that went public through a special purpose acquisition company (SPAC) merger, SoFi trades well below the merger price of $10. However, it is still the best performer among all of the companies that merged with blank check companies sponsored by “SPAC king” Chamath Palihapitiya. For context, Opendoor (OPEN), Clover Health (CLOV), and Virgin Galactic (SPCE) were the other companies that merged with Palihapitiya’s SPACs, and all three now trade well below $5 per share - which is the threshold for penny stocks.
