SOFI Sells Off Over $1.5B Common Shares Sale

Core Insights - SoFi is conducting a stock offering valued at approximately $1.5 billion, which has contributed to recent stock weakness [1][5] - Despite recent declines, SoFi's stock has increased by about 68% year-over-year, indicating strong performance over the past 52 weeks [2] - The company has turned profitable, achieving a profit margin of around 19% based on the trailing four quarters [3] Financial Performance - SoFi generated approximately $640 million in profit from $3.3 billion in sales, marking a significant turnaround from a loss of $340 million on $2 billion in revenue two years ago [4] - The stock offering involves the issuance of an additional 54.5 million shares, representing about 5% of the total common equity in free float [5][7] Market Context - The stock offering is seen as a healthy move for the company, aimed at financing operational expenses and expansion efforts [6] - The overall market conditions may also be influencing SoFi's stock performance, with potential capital rotation contributing to price movements [8][12] - The recent downturn in SoFi's stock may be partially attributed to broader trends in the crypto market, as the company operates in high-growth areas of finance [11]