SoFi Technologies (NASDAQ:SOFI) stock has stabilized, rising 0.5% in Wednesday trading after falling 12% on Tuesday, as fears eased that the credit quality hurting Upstart's (UPST) Q1 results would also affect the personal finance app.
Mizuho analyst Dan Dolev said the downturn was unwarranted. He's impressed by SoFi's (SOFI) ramp up in personal loans, major metrics trending up, and strong upside to full-year guidance on both revenue and adjusted EBITDA.
Concern about credit quality is less of an issue with the fintech than others, said Oppenheimer analyst Dominick Gabriele. "SOFI is more fee-driven today and their originated loans are super prime in both student and personal (yes, even personal)," the analyst wrote in a note to clients. "They're learning to underwrite credit cards, yet card is still a very small part of the business. We're less focused on credit for SOFI vs. other lenders."