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Stock impact report

Want to Buy the Dip on SoFi Stock? Here's 1 Risk You Need to Know About. [Yahoo! Finance]

SoFi Technologies, Inc. (SOFI) 
Company Research Source: Yahoo! Finance
As of this writing (April 10), SoFi shares are trading 59% off their peak from February 2021. This is despite the business registering solid growth and profitability. If the dip is enticing you to buy this fintech stock , though, consider one crucial risk first. SoFi was founded in 2011 to help students pay for their education. This was reflected in the company's lending activities. In 2018, 2019, and 2020, SoFi originated $18.1 billion total in student loans. This was a key business driver. In early 2020, the COVID-19 pandemic hit. To ease the stress on borrowers, the Department of Education temporarily paused payments and eliminated interest. Consequently, there was less of a need for people to refinance their loans to obtain a lower interest rate. This radically altered SoFi's lending activities. In the last four years, the company originated just $12.9 billion in student loans. This is significantly lower than the $46.6 billion of personal loans it approved during the same Show less Read more
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