Jamie Dimon, CEO of JP Morgan Chase has stated that fintech startups pose a substantial threat to traditional banking.
We think that it’s possible he was thinking of SoFi. The firm continues to offer cutting-edge solutions that appeal to a younger demographic that is more inclined to welcome a move away from traditional banking.
If we are talking about SoFi, why not take a look at their recent merger, and see how the IPOE stock is performing. Due to the recent merger between Social Capital Corporations and SoFi, the IPOE stock valuation is gradually increasing.
Let’s find out more about it here.
IPOE Stock Overview
Social Capital Hedosophia Holdings V continues to lose value as its merger with SoFi approaches completion. IPOE stock price appears to have been the target of some short-selling activity, which might be tied to the merger’s postponement.
After the US Securities and Exchange Commission changed its instructions on the accounting treatment of special purpose acquisition company warrants, the deferral was made.
However, there is no reason to believe the merger will fail, and the IPOE stock forecast will falter. Moreover, the Social Capital Hedosophia Holdings and the SoFi merger’s postponement will have no influence on SoFi’s valuation.
The latter is the firm on which investors are most keen to place their bets. If investors bought SOFI stock instead of IPOE stock, the share price would substantially be higher.
Keeping that in mind, investors who purchased IPOE shares when they first began trading in late 2020 are up more than 50%. They would have been up around 150% at one time. SPAC weariness may exist, but it shouldn’t have a significant influence on investors’ confidence in SoFi’s long-term prospects.
SoFi’s Unstoppable Growth
SPACs have been criticized for making it too simple for target firms to avoid the scrutiny that comes with standard initial public offerings. However, unlike some other public firms, SoFi has a sizable and expanding revenue base.
SoFi produced $621 million in net sales in 2020, excluding certain items. In addition, the firm expects to exceed $1 billion in revenue in 2021. It means the IPOE stock forum may increase even when it is merged with SoFi.
SoFi’s revenues increased by roughly 60% year over year to $200 million in the third quarter of 2020. This is mainly due to the company’s continued expansion. It has around 1.9 million unique members by the end of 2020.
Even more astounding than those figures is the fact that SoFi plans to generate positive EBITDA in 2021. SoFi’s failure to attain profitability was my biggest fear regarding IPOE shares when I last wrote about it in early April.
Thus, SoFi’s revenue is expected to reach $3.7 billion by 2025, according to the company’s projections. However, if SoFi is successful in obtaining a national bank charter following its $22.3 million acquisition of Golden Pacific Bancorp, that forecast may be too modest.
Is IPOE Stock Worth Investing?
If you take a look at the IPOE stock forecast, you will see, after merging with SoFi, their stocks have increased in value. One of SoFi’s most recent inventions is a no-fee credit card that allows customers to redeem reward points in bitcoin.
It shows that Social Capital has indeed merged with a successful business enterprise, which will tilt the odds in their favor.
As their merger deadlines are near, certain SPACs appear to be deteriorating. That isn’t the case with Social Capital Hedosophia Holdings V because the objective, SoFi disclosed, seemed excellent. It’s getting better as the merger deadline approaches.
It appears that after the merger is completed and IPOE stock becomes SOFI stock, the stock will likely rise. SoFi is a fintech business that is disrupting the traditional financial sector now, rather than waiting for its IPO. Moreover, the firm is predicting IPOE stock price targets that seem to be measurable and attainable.
IPOE Stock Risks
This IPOE stock has moderate day-to-day swings and a high trading volume, thus the risk is deemed medium. The stock changed $0.65, or 4.61%, between high and low on the previous day. This stock has had daily average volatility of 4.39% over the previous week.
The stock price of Social Capital Hedosophia Holdings Corp. decreased -2.56 percent on Wednesday, 29th December 2021, from $14.85 to $14.47. It has now declined three days in a row. The price varied 4.61 percent throughout the day, from a low of $14.18 to a high of $14.83.
Although the price has climbed in six of the previous ten days, it is still down -0.07% for the time. Thus, the IPOE stock volume declined along with the stock on the last day, which is a good indicator because volume should follow the stock.
The trading volume declined by -3 million shares on the past day, resulting in a total of 20 million shares being purchased and sold for $294.83 million.
If you look at the current market conditions, the IPOE stock forum is following a downward trend, which might reflect a solid business opportunity.
If the lower trend floor of $13.69 is broken, it will signal a faster rate of decline. Given the present short-term trend, the stock is anticipated to lose -17.99% during the next three months. Thus, there are high chances that the IPOE stock will conclude the period with a price between $11.22 and $16.89.
Ans: Social Capital Hedosophia Holdings Corp. V is a leading next-generation financial services platform, and its shares are known as IPOE Stock. It is a publicly-traded special purpose acquisition company, who has recently completed its previously announced transaction to take SoFi public.
Ans: Once SPAC merges with the target, the IPOE stocks into a new wave. The SPAC company has found a new target to merge with because the IPOE stock will cease to exist once the merger is complete. Therefore, the combined stock of the merged company will trade under the name SoFi.
Ans: As you already know IPOE shareholders have approved their merger with SoFi. This is why SoFi has started trading on 1st June 2021. Hence, the current shareholders of IPOE have automatically converted their shares under the trading name of SoFi.
The Bottom Line
As you have already guessed, the IPOE shareholders are in favor of its merger with SoFi. Although it is not clear yet what will happen to the IPOE share after the merger, people are predicting that the IPOR stock forecast will follow an increasing trend.
Therefore, if you want to know anything else about IPOE stock, let us know in the comment box below. We will get back to you ASAP.