SoFi Plunges 10%

The stock is trading at $4.44 per share on Monday, May 15. The personal finance company and online bank value have gone down 20% in the last four days.

Before the trading started, the price objective was decreased by 50% to $2.50 per share by Wedbush analysts, who also downgraded the company from Neutral to Underperform.

In only four days, the value of online banks and personal finance companies has dropped by 20%.

According to the analysts, SoFi’s fee income from loan origination and sales may be approaching a turning point, and because “capital levels may be overstated using fair value accounting,” they believe the company may seek to raise capital this year to support growth.

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