Fintech startup SoFi Technologies (NASDAQ: SOFI) stock closed nearly 7.1 percent higher on Friday, offering investors with nearly 15 percent gains in the last 30 days. The stock can gain further ground as it is currently at its highest level during the last six months. Overall market sentiment is bullish and this could help SoFi Technologies to reach a new 52-week high.

SoFi Technologies, Inc. (NASDAQ: SOFI) is a financial technology company providing various financial services, including loans, investments, and banking, through its app and digital platform. Recently, its stock has experienced volatility, reflecting both the broader market sentiment and the company's rapid business expansion. After closing at $8.39, the stock could touch 52-week in the upcoming sessions if broader market conditions remain bullish. SoFi is positioned as a growth-oriented company but remains unprofitable, which influences its valuation metrics.

Stock Performance

Opening, High, Low, and Current Price
On October 5, 2024, SoFi's stock opened at $8.03, reaching an intraday high of $8.40 and a low of $7.90. The current closing price sits around $8.39 (at day's high), showing some stability despite overall market fluctuations.

52-Week High and Low
SoFi's stock has seen considerable movement over the past year, with a 52-week high of $10.49 and a 52-week low of $6.01. This wide range demonstrates the stock’s volatility, heavily influenced by macroeconomic factors and investor sentiment toward growth stocks in the tech and fintech sectors.

Valuation Metrics

Price-to-Earnings (P/E) Ratio
Due to SoFi's ongoing growth strategy and its focus on expanding market share over profitability, the company currently operates at a loss, and therefore, the stock's Price-to-Earnings (P/E) ratio is negative. Investors often rely on future earnings potential rather than traditional P/E ratios for such companies. The stock's forward P/E ratio is high, reflecting expectations of future profitability, but this also signals caution for some investors looking for immediate value.

Analyst Ratings and Research House Calls

Several analysts have issued buy and sell recommendations on SoFi Technologies over the past few months. As of September 2024, analysts from BTIG Research maintained a Buy rating with a target price of $14, reflecting a potential upside of nearly 80% from its current trading price. However, Citigroup issued a Buy recommendation with a more conservative target price of $11 earlier in April 2024. These varied target prices reflect differing views on how quickly SoFi can achieve profitability and scale its business.

In summary, SoFi remains an exciting growth stock with significant upside potential, yet it carries risks associated with its unprofitable status and exposure to changing market conditions. Investors should carefully evaluate their risk tolerance before investing.