SoFi's Tangible Book Value Grew 80% in a Year. Yet the Stock Fell 9% on the News.
The fintech's quarter set records on nearly every line. What investors marked down is a different number.
Overview
Shares of digital banking specialist SoFi Technologies (NASDAQ: SOFI) fell about 9% on Wednesday after the company reported its second-quarter results. The report itself was stacked with records -- record net revenue, a record 1.1 million new members, record loan originations, and a tangible book value that reached $9.5 billion -- 80% higher than a year earlier.
So what exactly did investors sell? A business rarely loses nearly a tenth of its market value on the day it reports numbers like these.
Details
The answer, I think, sits in the one part of the report that didn't move: the profit outlook. But with the stock now priced at just 2 times tangible book value, this could be a buying opportunity.
Source
Originally published at www.fool.com.