Wait for a Pullback to Buy SoFi Technologies

Wait for a Pullback to Buy SoFi Technologies

Long-term investors should consider buying SOFI stock after a potential decline

Financial technology startup SoFi Technologies (NASDAQ: SOFI ) went public as SOFI stock on Jun. 1 via a reverse-merger with a special purpose acquisition company (SPAC) called Social Capital Hedosophia Corp. V . As a result, SoFi raised $2.4 billion in cash proceeds to be used for further expansion strategies.

Commonly referred to as blank-check companies, SPACs have become extremely popular lately. Instead of going through a long and usually difficult initial public offering (IPO) process, a large number of private businesses have been raising capital and going public via merging with a SPAC.

Recent metrics suggest that 2020 has been a significant year for SPAC mergers, which “raised almost twice as much as they raised in the previous 10 years combined.” Now, this year has already beaten the 2020 figures. Read more