SoFi Stock Is a Table Pounder at $25: Here’s Why You Should Buy The Dip

Core Viewpoint - The recent selloff in tech and AI stocks has led to a decline in quality stocks, including SoFi, which has dropped over 20% and is now in bear market territory [1] Group 1: Stock Performance and Valuation - SoFi's stock valuations appeared stretched above $30, prompting some investors to exit positions, but the recent decline to around $25 presents a buying opportunity [2] - The stock is considered a high-beta name, indicating greater volatility compared to broader markets, and has fallen below the 100-day moving average, a bearish technical indicator [7] Group 2: Market Influences - The selloff primarily affected tech stocks, with SoFi being collateral damage, although company-specific issues contributed to its decline [4] - Mixed signals from Fed officials regarding a potential December rate cut have pressured growth stocks like SoFi, despite lower interest rates being beneficial for its student loan refinancing business [5] - The recent cryptocurrency crash has also impacted SoFi, which had just relaunched its cryptocurrency trading business [6] Group 3: Investment Outlook - Despite the challenges, the current price levels make SoFi's risk-reward profile attractive, with the stock being viewed as a good buy due to reasonable valuations and growth potential [8]