SoFi Technologies Inc SOFI stock experienced a 15.27% drop on March 5, following the announcement of its convertible senior notes offering, aiming to raise $750 million.
The stock is seeing some recovery in pre-market trading today. Redditors, however, are discussing whether investors should buy-the-dip?
Related: SoFi Technologies Prices $750 Million Convertible Senior Notes Offering Due 2029
Buying Sofi on this dip
The news sparked discussions among Redditors, particularly in response to a post titled “Buying Sofi on this dip” by user Didntlikedefaultname on the r/stocks subreddit.
With Sofi’s recent earnings showing promise, the market’s response to both post-earnings surges and convertible note offerings has stirred varying opinions among Reddit investors.
Redditors’ Perspectives
- SOFI Shuffle:
- User doggz109 suggests a buy at $6 and a sell at $9, referring to it as the “SOFI shuffle.”
- Long-Term Hold:
- Valsalva64 shares their experience of gains evaporating but sees Sofi as a reasonable long-term hold.
- Positive Outlook:
- Digital-Panda foresees potential for Sofi to jump to $12 the next time it hits $9.
- Confidence in 2024 Projections:
- Birdperson15 expresses agreement with the buying opportunity, citing promising 2024 projections and the potential for 50% growth.
- Volatility Concerns:
- ironcladjogging points out Sofi’s volatility, expressing concerns about marketing expenses and the overall ride becoming wearisome.
- Bearish Take on Convertible Note Offering:
- Puzzleheaded-Ad319 provides a detailed analysis of Sofi’s recent convertible note offering, highlighting potential risks such as dilution and questioning the timing and necessity of raising capital.
- Caution on Convertible Note Offering:
- Pathogenesls emphasizes the negative implications of a convertible note offering, suggesting potential cash flow issues and shareholder dilution.
The diverse views from Redditors on Sofi stock showcase a spectrum of opinions, ranging from optimistic perspectives on future growth to cautious concerns about recent financial moves.
As investors continue to navigate the uncertainties surrounding Sofi, discussions on platforms like Reddit provide valuable insights into the sentiment and considerations of the retail investor community.
Image: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Your update on what’s going on in the Fintech space. Keep up-to-date with news, valuations, mergers, funding, and events. Sign up today!