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SOFI Stock’s Sky High Valuation Can’t be Justified by Exciting Growth

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SoFi Technologies (SOFI) is a lending technology platform and consumer financial stock that has vastly outperformed the wider financial sector over the past 12 months .

However, despite impressive growth expectations, I’m bearish on this Californian company.

The stock’s valuation is simply too high, and the high price paid for expected growth introduces too much execution risk.

Is SoFi Technologies a Buy, According to Analysts? On TipRanks , SOFI comes in as a Hold based on five Buys, seven Holds , and two Sell ratings.

The average SOFI stock price target is $ 10.29 , implying about 34.75% downside risk.

While the company could surprise me to the upside, the potential rewards simply don't justify the high risks.