Shares of SoFi Technologies took a hit Thursday after President Joe Biden extended the federal student loan repayment moratorium that was slated to expire on May 1. SoFi revised its financial guidance late Wednesday due to lower revenue from federal student loan refinancings. The news sent SoFi stock sharply lower.
Biden announced the extension on Wednesday. The new expiration date for the moratorium is Aug. 31.
SoFi stock fell 7.2% to close at 8.12 on the stock market today. On Wednesday, it dropped 4.1%.
SoFi lowered its fiscal 2022 adjusted net revenue guide by $100 million, to $1.47 billion. The guidance contemplates the extension of the moratorium through the end of 2022, MoffettNathanson analyst Eugene Simuni said in a report.
SoFi Expanding Beyond Lending
Meanwhile, SoFi stock has plunged 49% in 2022. San Francisco-based SoFi currently provides home loans, personal loans, in-school loans and credit card services.
"The student loan business is a core part of SoFi's lending segment," Simuni said. "However, SoFi is also one of the market leaders in the personal loan market and has a rapidly growing presence in the mortgage market. Outside of lending, SoFi is rapidly building an end-to-end digital banking offering focused on valuable higher-income consumers."
SoFi stock briefly rallied early this year when the Federal Reserve approved the fintech's purchase of Golden Pacific Bancorp.
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