SoFi Technologies Inc SOFI stock has not recovered from the price plummet after its announcement of the $750 million debt offering.
It’s been a while since investors saw SoFi stock do well. After the initial hype died down post 2021, the stock has largely been doing a tango between the $5 to $10 level. While the latter half of 2023 appeared to provide some respite, come 2024 and the stock was down almost 25% already.
Investor bearishness over the stock was recently confirmed by the emergence of a Death Cross signal on the technical price charts for SoFi stock.
![](https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/13133004/Screenshot-2024-03-13-at-6.58.05-PM.png)
The chart above depicts the emergence of the Death Cross on SoFi stock’s price chart. The orange line representing the 50-day simple moving average (SMA) has crossed under the 200-day SMA (blue line), triggering the dreaded technical signal.
Investor concerns for SoFi stock have particularly been revolving around:
- Sofi’s marketing expenses
- Stock volatility
- Implications of the convertible note offering, including dilution and cash flow issues
Also Read: SoFi Stock: Are Redditors Buying The Dip After $750M Debt Offering?
Moreover, big investors also referred to as “whales,” were betting against SoFi stock, according to Benzinga’s tracking of options records. The unusual activity suggested a major move coming. Among 13 notable options, 69% are bearish, with three puts totaling $106,680 and 10 calls at $520,482.
Recent analyst ratings provide no silver lining either:
- On March 6, Wedbush analyst reiterated Underperform with a price target of $3 on SoFi stock.
- On March 11, Piper Sandler analyst reiterated Neutral while reducing the price target from $8.5 to $8 a share.
Read Next: What’s Going On With SoFi Technologies Stock?
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