SoFi (SOFI) stock has never been for the faint-hearted, given its volatility and periods of deep drawdowns that can test the patience of even the most hardened investors. The stock has a beta of 1.92x, which implies that it is nearly twice as volatile as the broader markets.
SoFi, which went public in 2021 by merging with one of Chamath Palihapitiya’s special purpose acquisition companies (SPACs), reached its all-time low of $4.24 in December 2022. As investors would recall, that year, U.S. stock markets, particularly growth and tech stocks, plunged. Loss-making names, which SoFi was back then, bore much of the brunt as investors shunned such companies amid tightening capital market conditions following the Federal Reserve’s rate-hiking spree.
