Should Investors Buy SoFi Stock Prior to May 10 Earnings?

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A recent story on Yahoo! Finance about SoFi Technologies (NASDAQ:SOFI) noted that between the fourth quarter of 2021 and the first quarter of 2022, traffic is increasing on the company’s website. Investors want to know if this could be a bullish sign for beaten-down SOFI stock. 

To answer that question, let’s put some numbers to those traffic increases and try to understand what they might mean. In the period that I mentioned, total unique visitors to SoFi Technologies’ website increased from 20.4 million to 31 million. But during the same time period, SOFI stock shed a massive amount of value. Since mid-December of 2021, the stock has declined from roughly $23 per share to under $7 per share.

Are visitors going to the website because they think the stock might be a steal, or could there be another reason? I don’t have any access to their analytics, so I can’t say anything definitively, but I can make a guess. Consumers are aware that the company services student loans. The website may be experiencing an increase in traffic as student loan holders continue to weigh their future options.

The company already downgraded its full-year guidance following President Joe Biden’s extension of the student loan moratorium. But there is a lot of debate regarding what will happen next. My guess is that consumers are flocking to the company’s website because they realize that the moratorium is nearing an end. They want to know what kind of options SoFi Technologies could possibly provide. 

That is one possible explanation anyway. There is plenty of upside in the stock. The average consensus target stock price is $14.41. But investors have no idea what will happen with student loans and that directly effects the potential of SOFI stock. With President Biden stating that some form of student loan forgiveness is likely in the next few weeks, it becomes very difficult to project company revenues for SoFi. So, I would say that investors should not buy the stock prior to the May 10 earnings report. Too much remains up in the air. Therefore, it is too difficult to predict what the company’s fundamentals will look like at this time.

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks.Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.