The odds of rate hikes have me wondering how this could effect $SOFI.
Yes, higher interest rates would benefit net margins. However, the loan originations would take a massive hit.
Loan originations have been the engine behind SoFi's growth over the years. In 2022 during the last rate hike cycle, the stock price fell from $22 (in late 2021) down to lows of around $4. It took a long time to recover.
Could we see a 2022-like drop in a rate hike cycle? I don't think so. Since 2022, SoFi has gained a bank charter, diversified their business in many ways, become profitable, and have ~$33,000,000,000 in deposit funding.
Is the stock still prone to drop in a hike environment? Sure. It's much more equipped to handle the pressure this time. I'll be adding to my position and continuing to take advantage of this price drop.
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