Should You Buy SoFi Technologies Stock Before Jan. 30?

Banking disruptor SoFi (NASDAQ: SOFI) has fallen by astir 20% from its caller highs and is acceptable to study its fourth-quarter net connected Friday, Jan. 30, earlier the marketplace opens.

To beryllium sure, SoFi's caller results person been excellent. The institution reported all-time highs for revenue, adjusted EBITDA, fee-based revenue, caller subordinate additions, and merchandise maturation successful the 3rd quarter, and absorption raised its full-year guidance arsenic a result. When SoFi reports fourth-quarter earnings, it expects to study a full of 3.5 cardinal caller members for the afloat year, 36% year-over-year gross growth, and full-year adjusted EPS of $0.37 per share.

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Additionally, SoFi's indebtedness maturation has been accompanied by little default rates, which is an fantabulous operation to see. There has besides been stellar maturation successful fee-based revenue, particularly from its indebtedness level business, which originates loans connected behalf of third-party partners and provides indebtedness referrals, generating low-risk, high-margin interest income.

If SoFi meets oregon exceeds its guidance (which it has a beardown way grounds of doing), the fourth-quarter results should beryllium alternatively impressive. But there's much to the story.

I won't conscionable beryllium paying attraction to SoFi's net study connected Jan. 30. I'll besides beryllium tuning successful to the net league telephone to (hopefully) get immoderate clarification connected the company's caller moves.

First, I'd similar immoderate clarification regarding the company's caller superior raise. In aboriginal December, SoFi sold astir $1.5 cardinal of caller shares to rise superior for "general firm purchases," and I recovered the determination to beryllium a spot odd. After all, SoFi's superior levels looked perfectly good anterior to this move, and there's nary wide crushed wherefore absorption felt the request to dilute shareholders. Don't get maine incorrect -- it's wholly imaginable CEO Anthony Noto and his squad person a large crushed for doing it, I'd conscionable emotion much clarification connected what it is.

Second, SoFi precocious introduced caller products, including the SoFi Smart Card, and transitioned to a $10 monthly interest for SoFi Plus benefits (previously, it was escaped if you made eligible nonstop deposits). Note that the Smart Card requires a SoFi Plus membership. I'd emotion to perceive much astir the archetypal absorption and lawsuit enthusiasm for this change.

The bottommost enactment is that SoFi could surely beryllium an charismatic banal astatine 20% disconnected the highs. But I'd consciousness much comfy adding to my already ample SoFi presumption erstwhile we get clarification connected a fewer lingering questions.