Sofi Shares Rise After Fintech Raises Revenue Forecast for 2023
Sofi, a financial technology company, saw its shares rise after it raised its revenue forecast for 2023. The company, which provides online banking, investing, and loan services, said it expects to generate between $2.3 billion and $2.4 billion in revenue for the year.
Background of Sofi
Sofi, formerly known as Social Finance Inc., was founded in 2011 by Mike Cagney, Dan Macklin, Ian Brady, and James Finnigan. The company started out as a student loan refinancing platform, but has since expanded its services to include personal loans, mortgages, and wealth management.
Sofi has become one of the most successful fintech companies in the U.S., with a valuation of more than $4 billion. The company has raised more than $2 billion in venture capital funding and has more than 8 million customers.
Sofi’s Revenue Forecast
Sofi’s revenue forecast for 2023 is significantly higher than its previous forecast of $1.9 billion to $2.1 billion. The company said it expects to generate between $2.3 billion and $2.4 billion in revenue for the year.
The company attributed the higher forecast to strong growth in its loan and wealth management businesses. Sofi said it expects loan originations to increase by more than 50% in 2023, while its wealth management business is expected to grow by more than 40%.
Sofi’s Stock Performance
Sofi’s stock has been on a tear since it went public in April 2021. The stock has more than tripled since then, and is up more than 20% since the company raised its revenue forecast.
Analysts have been bullish on the stock, with many expecting it to continue to rise. Analysts at Wedbush Securities have a price target of $45 per share, while analysts at Goldman Sachs have a price target of $50 per share.
Sofi’s Growth Strategy
Sofi has been focused on expanding its services and growing its customer base. The company recently launched a new mobile banking app, which allows customers to manage their finances on the go.
The company has also been investing heavily in technology, with a focus on artificial intelligence and machine learning. Sofi has also been expanding its international presence, with plans to launch in the UK and Canada in the near future.
Sofi’s Future Outlook
Sofi’s future outlook is bright, as the company continues to expand its services and grow its customer base. The company is well-positioned to capitalize on the growing demand for digital banking and wealth management services.
Analysts expect the company to continue to grow at a rapid pace, with revenue expected to reach $3 billion by 2024. The company is also expected to continue to invest in technology and expand its international presence.
Conclusion
Sofi is one of the most successful fintech companies in the U.S., with a valuation of more than $4 billion. The company has raised more than $2 billion in venture capital funding and has more than 8 million customers. Sofi’s revenue forecast for 2023 is significantly higher than its previous forecast, and the company’s stock has been on a tear since it went public. Sofi has been focused on expanding its services and growing its customer base, and analysts expect the company to continue to grow at a rapid pace.