SoFi Technologies, Inc. shows positive growth potential and faces resistance at $9.57.

Technical Analysis

SoFi Technologies, Inc. (SOFI) closed at $9.39 on August 07, 2023, reflecting a change of -0.11 (-1.16%). The day's range was between $9.16 (support level) and $9.57 (resistance level), implying a certain degree of volatility. The volatility is further underpinned by an ATR (Average True Range) of 6.66, a measure that captures price fluctuations and market volatility.

SoFi's 50-day moving average stands at $8.67, and the 200-day moving average is $6.33. These longer-term averages being lower than the closing price suggests a current bullish trend.

The RSI14, or Relative Strength Index, at 48 points to a somewhat neutral scenario, implying the stock is neither overbought nor oversold at the current price, indicating a balanced market situation.

The MACD (Moving Average Convergence Divergence) over the 3-month period is 0.51, a positive value indicating bullish momentum. The MACD, which highlights the relationship between two moving averages of a security's price, is a commonly used momentum indicator.

The impressive trading volume of 11.13 million compared to the average volume of 56.11 million suggests lower investor interest on the given day.

Fundamental Analysis

SoFi Technologies, Inc., with its market capitalization of $8.66 billion and shares outstanding of 940.90 million, poses a significant presence in the market. Despite not providing a positive earnings per share (EPS) of -$0.31, it has recently shown robust growth in its lesser-known business segments, as indicated by recent news in August 2023. The company's robust quarterly results due to record Tech Platform and Financial Services results signify strong growth and an optimistic future outlook.

The stock has already garnered over 100% gains this year, even after giving up about half of last month's gain. Given the strong operational growth coupled with its financial services results, the company expects to reach GAAP net-income profitability in the fourth quarter of 2023.

The discounted cash flow (DCF) value, an intrinsic valuation method, is at $10.79, indicating that the stock is currently undervalued compared to the intrinsic value.

The consensus target from other analysts stands at $10, with a target high of $22 and a target low of $2.5. This consensus target is reflective of a potential upside, provided the company continues on its current growth trajectory.

Stock Prediction and Final Evaluation

Given the technical and fundamental analysis, the stock shows positive growth indications supported by its operational improvements and a focus on innovation and modernization. However, some caution is advised due to its EPS being in the negative and high volatility, which may not be suitable for conservative investors.

For the next trading day, given the current momentum and positive news around business segments, we can expect the stock to test the resistance level ($9.57).

For the upcoming week, given the potential for continued growth and the DCF value, we may see a move towards $10, provided the company sustains its operational momentum and the market sentiment remains positive.

As a final evaluation, SoFi Technologies, Inc. is classified as a 'Hold.' The stock's anticipated growth and increasing profitability signal a positive trajectory. However, the current high volatility and negative earnings per share imply potential risk. Investors already holding the stock could consider retaining it for longer-term gains given its growth potential. However, potential investors should be aware of the associated risks before initiating a position in the stock.