Why SoFi Stock Dropped 16% This Week
Shares of SoFi Technologies (NASDAQ: SOFI) fell 16.6% this week, according to data provided by S&P Global Market Intelligence, after a noted Wall Street analyst downgraded the banking and fintech services stock.
In a note issued to clients early Wednesday, Keefe, Bruyette & Woods analyst Mike Perito downgraded SoFi to underperform from market perform and lowered his per-share price target on the stock to $6.50 from $7.50.
To justify his relative bearishness, Perito noted that SoFi shares had rallied more than 40% on the heels of its stellar third-quarter report in early November. He also worries that falling interest rates in the coming year could weigh on SoFi's earnings given its fair-value accounting -- particularly as it pertains to the reported value in any given quarter of the unsecured personal loans SoFi holds on its balance sheet.
Source Fool.com
