SoFi Just Reported Earnings. Is the Stock a Buy Now?

SoFi Technologies (NASDAQ: SOFI) conscionable can't get immoderate marketplace emotion these days. The neobank continues to show outstanding performance, and its banal continues to drop. After its second-quarter results were released connected Wednesday morning, with grounds gross and profits, SoFi banal fell different 13% arsenic of this writing.

Is this conscionable a continuation of antagonistic sentiment that won't vanish? Or is the banal ripe for buying astatine the existent price?

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The cross-buy strategy is moving

SoFi is making its sanction arsenic a large subordinate successful U.S. user banking. It continues to adhd caller customers astatine a accelerated pace, but it's besides generating higher gross done its cross-buy strategy. Management sees the company's differentiating origin arsenic being a "one-stop shop" for each your integer banking needs, and arsenic it onboards caller customers and gets them to adhd caller products, it's enjoying a flywheel effect of higher gross and profits.

Here are immoderate of the second-quarter highlights:

• Adjusted nett gross accrued 40% twelvemonth implicit twelvemonth to $1.2 billion.

• Adjusted net earlier interest, taxes, depreciation, and amortization (EBITDA) roseate 44% to $358 million.

• Adjusted net per stock (EPS) roseate 50% to $0.12.

• Record indebtedness originations of $14.8 billion, up 69%.

• Member maturation was 35%, with 1.1 cardinal caller customers.

• Product maturation was 42%, with 2.2 cardinal caller products.

These past 2 points are important arsenic they bespeak the company's cross-sell strategy is working. Cross-buy accelerated to 51% successful the quarter, with 2 caller products for each caller customer.

CEO Anthony Noto attributed this to the company's innovation engine. SoFi precocious launched a slew of caller products and features, similar SoFi Coach, an artificial quality (AI) powered fiscal advisor, and Composer, a recently acquired concern AI agent.

Although SoFi is not an concern bank, it does connection investing services, and it was 1 of the 5 brokerages chosen for the record-breaking Space Exploration Technologies archetypal nationalist offering (IPO). It's besides participating successful the precocious maturation of ample concern banks that benefited from beardown equities enactment successful the 2nd quarter, and brokerage gross accrued 141%.

Why the market's down connected SoFi banal

It's not the archetypal oregon adjacent 2nd clip SoFi banal has dropped aft an fantabulous net report. Usually, I'd accidental that arsenic an costly stock, there's truthful overmuch priced into the banal that immoderate imperfection volition nonstop it down. But astatine 19 times adjacent year's earnings, SoFi looks rather reasonably priced for the benignant of maturation it's demonstrating.