Latest news with #SOFI
Yahoo
5 hours ago
- Business
- Yahoo
As SoFi Raises 2025 Guidance, Should You Buy, Sell, or Hold SOFI Stock Here?
SoFi (SOFI) shares are up well over 10% at the time of writing after the neobank said a 64% year-over-year increase in loan originations helped it come handily above Street estimates in its Q2. Investors are cheering SOFI shares this morning also because management raised its already lofty full-year guidance, signaling continued robust demand for the firm's banking and lending solutions. More News from Barchart Tesla Just Signed a Chip Supply Deal with Samsung. What Does That Mean for TSLA Stock? Here's What Happened the Last Time Novo Nordisk Stock Was This Oversold Dear Microsoft Stock Fans, Mark Your Calendars for Aug. 1 Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Including today's rally, SoFi stock is up roughly 180% versus its year-to-date low set in early April. SoFi Stock is Benefitting From Revenue Diversification SOFI added another 850,000 new members and noted a 72% year-over-year increase in its fee-based revenue in the second quarter, indicating strong platform engagement and growing demand for its non-interest income services. The company's strong Q2 numbers reflect successful cross-selling, improved customer acquisition strategies, and increasing brand relevance among digitally native consumers. Moreover, continued increase in fee-based revenue that now contributes about 44% to the top line signals revenue diversification, reducing reliance on lending margins and adding resilience to profitability. Overall, the earnings release underscores operational momentum and reinforces confidence in its scalable fintech model, which may help SOFI shares extend gains further in the back half of 2025. SOFI Shares Are Trading at a Premium Valuation While the Q2 results bode well for SoFi shares, BTIG analyst Vincent Caintic recommends pulling out of them as much of the good news may already be priced in at current levels. To be fair, the fintech stock is going for a forward price-earnings multiple (P/E) of nearly 77x at the time of writing, much higher than some AI stocks, even including Nvidia (NVDA) at 43x only. Note that BTIG currently rates the financial technology company at 'Hold' only. Wall Street Recommends Caution on SoFi Technologies Investors should tread with caution on SOFI shares also because they are already trading near the Street-high price target of $27. According to Barchart, the consensus rating on SoFi stock currently sits at 'Hold' only with the mean target of about $17 indicating potential downside of well over 30% from here. On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
DW
9 hours ago
- Business
- DW
UN warns of rising hunger across Africa – DW – 07/29/2025
The number of hungry people around the world reduced for a third straight year in 2024. But across Africa, conflict, climate change, and economic shocks are increasing hunger and malnutrition. A global report released Monday projects that Africa will account for nearly 60% of the world's hungry people by 2030. The report, jointly prepared by five United Nations agencies says more than one in five people on the African continent — about 307 million — were chronically undernourished in 2024, meaning hunger is more prevalent than it was 20 years ago. Around 673 million people, or 8.2% of the world's population, experienced hunger in 2024, down from 8.5% in 2023, according to the State of Food Security and Nutrition in the World report (SOFI). "The extreme food insecurity is being driven by conflict, and we have the largest number of conflicts in the last decade," Alvaro Mario, President of the International Fund for Agricultural Development (IFAD), told DW. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video The gap between global food price inflation and overall inflation peaked in January 2023, driving up the cost of diets and hitting low-income nations hardest, the report said. Productivity gains are not keeping up with high population growth and the impacts of conflict, extreme weather and inflation. Conflicts in hotspot areas such as Sudan and the Democratic Republic of Congo have driven people to extreme situations. "Hunger feeds future instability and undermines peace," UN Secretary-General Antonio Guterres said in remarks delivered by video link to the Food Systems Summit in Ethiopia on Monday. Some African countries have been hamstrung by debt overhang which experts describe as a hindrance to public expenditure on food. "Many African countries are struggling with repayments on their debt," Mario told DW, adding that high interests on debt are taking up 10-25% of public expenditure. "This is clearly distracting a lot of the potential investment. We are wanting to support many of these countries with debt relief or debt interest payments," he said. According to the SOFI report, the percentage and the number of people unable to afford a healthy diet has decreased significantly in Asia, Latin America, the Caribbean, North America and Europe. But it rose across Africa, from 64.1% in 2019 to 66.6% in 2024, representing an increase from 864 million to 1 billion people. In some countries like Nigeria the steepest food price increases were in starchy staple foods and oils. Staples form the core of diets for the poorest households, and such increases can undermine food security and nutrition. "Where diets are least affordable, wasting and stunting rates are simultaneously highest," Tendai Gunda, a public health nutritionist told DW. She added that price and income dynamics are now a dominant pathway through which malnutrition, under-nutrition, micro-nutrient deficiency and diet related non-communicable diseases persist. Food security organizations have called for political will, strong public financing, and development plans to achieve food self-sufficiency. "It is important that more countries focus on becoming self-sufficient, so that many of the small scale farmers not only produce, but are able to sell onto markets," IFAD President Mario said, adding: "Investments would be fundamental if we want to tackle both poverty and hunger in rural areas." Nutritionists have also urged governments to classify agri-food supply chains as essential services and maintain open intra-African trade corridors. "Nutrition governance should be supported through funding of multi-sectoral food and nutrition councils," said Gunda. Gunda says governments should also elevate women's land use and finance rights, a policy that has proven to improve child and maternal health. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video
Forbes
9 hours ago
- Business
- Forbes
Buy Or Sell SOFI Stock At $24?
CHONGQING, CHINA - JULY 27: In this photo illustration, a smartphone displays the logo of SoFi ... More Technologies Inc. (NASDAQ: SOFI), a U.S.-based online personal finance company and digital bank, in front of a screen showing the company's latest stock market chart on July 27, 2025 in Chongqing, China. (Photo illustration by) SoFi Technologies stock (NASDAQ:SOFI) surged 14% in early trading on Tuesday, July 29, after the announcement of strong Q2 earnings. The firm disclosed earnings of $0.08 per share on revenue of $855 million, considerably surpassing Wall Street's projections of $0.06 per share and $804 million, respectively. To add to the positive developments, SoFi has upgraded its full-year 2025 forecast. Management now expects adjusted net revenue of roughly $3.375 billion, indicating approximately 30% annual growth (up from the earlier guidance of 24% to 27%). Furthermore, GAAP EPS is anticipated to be around $0.31 per share, an increase from the previous estimate of $0.27 to $0.28 per share. In fact, in our prior analysis, we noted SoFi's historical tendency to yield positive stock returns following earnings announcements. Nevertheless, the critical question now is whether the stock is worth buying at its current price of $24. We contend that SOFI stock seems risky due to its exceptionally high current valuation. This conclusion is derived from a comparison of SoFi's prevailing valuation against its recent operational performance and its current and historical financial health. Our comprehensive evaluation of SoFi Technologies, which includes key parameters like Growth, Profitability, Financial Stability, and Downturn Resilience, suggests that the company possesses a moderate overall operating performance and financial condition. However, for investors seeking lower volatility than individual stocks, the Trefis High Quality portfolio offers an alternative—having outperformed the S&P 500 and achieved returns exceeding 91% since its inception. Separately, see – Celcuity: What's Happening With CELC Stock? How Does SoFi Technologies' Valuation Compare to The S&P 500? Based on what you pay for each dollar of sales or profit, SOFI stock seems overpriced in comparison to the overall market. How Have SoFi Technologies' Revenues Changed in Recent Years? SoFi Technologies' Revenues have increased significantly over recent years. What is the Profitability of SoFi Technologies? SoFi Technologies' profit margins are roughly at the median level for companies within the Trefis coverage universe. How Resilient is SOFI Stock During Economic Downturns? SOFI stock has performed significantly worse than the benchmark S&P 500 index during some recent downturns. As investors hope for a soft landing of the U.S. economy, how severe could the situation become if another recession occurs? Our dashboard How Low Can Stocks Go During A Market Crash tracks how key stocks performed during and after the last six market crashes. Putting All The Pieces Together: Implications for SOFI Stock In conclusion, SoFi Technologies' performance across the aforementioned parameters is as follows: While SoFi has demonstrated moderate performance in the aforementioned areas, its current valuation represents a considerable risk, rendering it a less appealing investment in our opinion. We recognize that our evaluation may be conservative, and investors might consider paying a premium for SoFi due to its strong revenue growth. (We have explored a possible upside scenario for SoFi in a separate analysis.) Nevertheless, SoFi stock is presently trading at over 9 times its trailing revenues, which is significantly higher than its three-year average of 4.5 times. Additionally, the stock has experienced substantial declines during adverse market conditions. This historical volatility, combined with its inflated valuation, indicates a high level of risk for SoFi at its current price points. Overall, investing in a single stock can be hazardous. Conversely, the Trefis High Quality (HQ) Portfolio, which includes a collection of 30 stocks, has a proven history of comfortably outperforming the S&P 500over the last 4-year period. What accounts for this? As a group, HQ Portfolio stocks have provided better returns with less risk compared to the benchmark index; a smoother ride, as demonstrated in HQ Portfolio performance metrics.
The Star
a day ago
- Health
- The Star
Roundup: Global hunger falls in 2024, but setbacks in Africa, West Asia: UN Report
ROME, July 28 (Xinhua) -- Global hunger levels declined in 2024 for the second consecutive year, with an estimated 15 million fewer people affected than in 2023, according to the latest United Nations (UN) report on food security. However, progress remains uneven, as hunger continues to rise in parts of Africa and Western Asia amid ongoing food crises and inflationary pressures. The 2025 edition of The State of Food Security and Nutrition in the World (SOFI) was released Monday by five UN agencies, including the Food and Agriculture Organization (FAO), the World Food Program (WFP), and the World Health Organization (WHO), at the UN Food Systems Summit Stocktaking Moment in Addis Ababa. Globally, 8.2 percent of the population - between 638 million and 720 million people - experienced hunger in 2024. This represents a modest improvement from 8.5 percent in 2023 and 8.7 percent in 2022. The overall decline was largely driven by progress in South-East Asia, Southern Asia, and South America. However, the report warned that these gains are being offset by worsening hunger trends in most sub-regions of Africa and Western Asia, particularly in countries facing prolonged conflict, displacement, or economic instability. Persistently high food price inflation was cited as a major obstacle to achieving global food security and nutrition targets. "Since late 2020, food price inflation has emerged as a key driver of food insecurity across all income groups," the report noted, with low-income communities hit hardest. In 2024, approximately 2.60 billion people - or 31.9 percent of the global population - were unable to afford a healthy diet. While this marks an improvement from 33.5 percent in 2022, the burden remains high, especially in economically vulnerable regions. The disparity is particularly stark in low- and lower-middle-income countries. In low-income nations, the number of people unable to afford a healthy diet rose from 464 million in 2019 to 545 million in 2024. In lower-middle-income countries (excluding India), the figure increased from 791 million to 869 million over the same period. The report cautioned that the international community remains "far off track" from achieving the 2030 goal of eradicating hunger. Structural challenges - including conflict, climate change, inflation, and inequality - continue to impede progress toward resilient and inclusive food systems. Since its first release in 1999, the SOFI report has served as a key global reference for tracking progress on hunger and nutrition.
Euronews
a day ago
- Business
- Euronews
Hunger surge strikes Middle East and Africa, UN survey shows
The ongoing burden of rising global crises has exacerbated hunger in Africa, Asia and the Middle East, UN agencies warn. According to the UN's State of Food Security and Nutrition in the World 2025 report, also known as the SOFI report, trade tensions, conflicts and climate change are the primary causes of global food inflation. The report, which gathers data from five international organisations — FAO, IFAD, UNICEF, WFP, and WHO — was drafted by IFAD, a Rome-based UN agency that provides grants and low-interest loans to fund projects in developing countries. "The situation is quite alarming, especially in Africa and in the Middle East," Álvaro Lario, president of IFAD, told Euronews. "It's a mixture between the conflicts, some of the disruption or shocks caused by economic or trade tensions and also the climate shocks. These are the three main drivers," Lario explained. Since the trade tensions of 2018, during the first Trump administration, elevated tariffs have mainly remained in place, contributing to ongoing trade tensions and influencing global agricultural trade dynamics. The figures of the survey show that the proportion of the population facing hunger in Africa surpassed 20% in 2024, affecting 307 million people, while in the Middle East an estimated 12.7% of the population, or more than 39 million people, faced hunger in 2024. Small farming activities under threat Increasingly dire living conditions for small farmers and rural populations in developing countries are catalysts for economic migration flows. "It's clear, when people do not have the ability of really having a livelihood where they are, then they are forced to migrate," Lario said. The link between migration, the ability to feed oneself, and the ability to also continue producing food is clear, he added. According to UN criteria, small-scale farmers are those who exploit less than 2 hectares of land. They produce one-third of the world's food and up to 70% of the food in Africa. The economic existence and sustainability of small-scale farmers are quintessential to food supply and food security in developing countries. Yet, according to international standards, they all live under the poverty threshold. They represent 80% of the world's poorest population. According to the IFAD assessment, international aid to agriculture doesn't meet the needs of small-scale farmers: in fact, they receive less than 1% of climate finance, which amounts to slightly more than €4 billion per year, when they would need more than €70 billion. Long-term investment in agriculture and small-scale farmers in developing countries is crucial for addressing global hunger. "Africa imports approximately €70, 80 billion of food every year. Clearly, they could be self-sufficient and they could create a lot of those jobs in Africa," said Lario. Each year, approximately 10 million young Africans enter the job market. "There could be many jobs created in terms of not only production, but distribution, storage, marketing, exporting," Lario stated. Rising conflicts disrupt the food chain According to the Integrated Food Security Phase Classification (IPC), more than 35 million people are living in a state of emergency (IPC Phase 4), and almost 2 million have reached IPC Phase 5, which is categorised as "catastrophe". Places where the population is facing extreme degrees of food insecurity are the Palestinians living in the Gaza Strip, along with South Sudan, Sudan, Yemen and Haiti. The survey indicates that 100% of the population in the Gaza Strip faces high levels of acute food insecurity, affecting a total of 1,106,900 people, nearly twice the 576,000 recorded in 2023, the highest numbers ever estimated globally in IPC history. "The situation is quite alarming, especially in Africa and especially in the Middle East. I would say those are the two areas where we're saying the numbers continue to increase," concluded Lario.
