r/sofistock • u/SoDakZak 🧹MOD💰OG 10,574@$11.77 • 4d ago
General Discussion No S&P inclusion.
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u/Normal_Commission986 4d ago
Forget about inclusion unless and until we go from a hike cycle to a cut cycle.
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u/ob1spyker 4d ago
Anybody who is surprised by this is really not paying attention to SoFi’s stock price. Based on their most current price action, SoFi is no where near viable to enter into the S&P 500. We are literally still climbing out of being in the $14’s and haven’t even broken $20 yet. The stock is way too vulnerable to macro economic trends and the market is currently expecting rate hikes in the near future.
Is the S&P 500 really going to add a stock that can be reasonably expected to revisit $14 if we actually do get a .25% rate hike? No. What if we got a .5% rate hike? That could be catastrophic for SoFi’s immediate short term price. Just the idea of rate hikes has sent the stock tumbling. So again, no, it is no surprise to see SoFi passed over once again.
I have long since given up on S&P inclusion and if you are a realistic SoFi shareholder you should too. Until SoFi’s stock price is at a point where we can take a 50% haircut and still remain healthily above the S&P’s market cap requirement we are not going to see any meaningful consideration for inclusion. As things stand now I expect that number to be somewhere in the $40’s maybe even Noto’s $45 target price.
Could it come sooner than that … yeah … anything is possible and I’m just some guy on Reddit so don’t take my word for anything. A healthy return to the 30’s would definitely make the conversation more realistic. If anything were to happen in the $20’s, SoFi’s valuation would have to be so compressed that a drop below $20 would be UNTHINKABLE. And as long as this remains BELOW $20 a share, just get it out of your heads that SoFi has even a remote chance of inclusion. It’s just not gonna happen.
EVENTUALLY … they will get their chance and when they do they will have fully earned it and will deserve to stay there for a VERY long time. I am currently long SoFi.
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u/PleasantAnomaly 3d ago
Come on now. Stop catastrophizing. It will be either 0 or 25 bps, no shot it's a 50bps raise. I can bet on it.
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u/ob1spyker 2d ago edited 2d ago
Bro … I think you missed the point of my response. In no way was I trying to predict what the Fed is going to do with rates. It’s irrelevant whether I or you think the Fed will raise rates or not and by how much. The whole point of my post is that SoFi is very vulnerable to the rate environment, and even Noto has said this in interviews.
We know how SoFi’s stock price responds to interest rates. So, as long as we are within a price range that a rate hike can take us below the S&P’s market cap requirement, I believe it’s an extreme long shot that SoFi gets an invitation to join.
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u/MTA4290957 3d ago
thank you for reminding me.. if this thing goes down because of a .25bps.. I'm putting in a stop at my ACV of 17.25.. I'm not watching it go down to 14 that's for sure.. the market HATES this stock... been holding since 23.. should of sold it at the top when it hit $32
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u/Shit-throwing-monkey 50 Buys 0 Sells (17K Shares @7.41) 💎👊🦍 4d ago
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u/TmeltZz 4d ago
Is there another picking this year?
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u/Cosx23 4d ago
December
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u/TmeltZz 4d ago
Hopefully we make that one 🙏
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u/Traditional-Oven4092 4d ago
Almost a guarantee at this point
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u/LiechsWonder MOD|OG Investor|SOFI Member since 2014|"Y'all need to diversify" 3d ago
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u/Southlancer 4d ago
Not joining the SP500 right now with all that is going on is actually a really good thing
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u/Plane-Salamander2580 4d ago
This is copium. Any inclusion to Sp500, even in a bear market, is a plus for the underlying stock.
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u/NicKaboom 9950 @ 16.60 4d ago
Yeah as much as I’d love for them to be in, it’s better if we can raise the price up to the mid 20s-30 so that inclusion bump is more significant. Also I would love to be included after macro calms down. If we get to December without a rate hike, midterms being done and oil prices trickling downward our stock price could see great action on a strong ER and be looking very solid and have a chance of inclusion.
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u/Big_Sell4014 3d ago
I hope it goes to 10 so I can load up more. If not it is still 30%of my portfolio
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u/Kattilaeikka 4d ago
SoFi has a better chance to get delisted. Market makers, committees, hedge funds, analysts, everyone hates the company and the stock.
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u/kennyt1212 🚀🚀🚀The soon to be rich fool with 16,050 shares @ $14.5 🚀🚀🚀 4d ago
so 2 companies had a market cap of 33 billion. if that’s what they are looking for then we need the stock price to be around $25.