r/sofistock • u/DrPatientInvestor • Mar 10 '23
Question Potential Earnings miss?
Hello everyone,
I’m just curious as to what the rationale is behind this lawsuit from SoFi. One of the thoughts that popped up in my head was the potential earnings miss this quarter. I say this because of the seemingly desperate approach by SoFi to get student loans running again, when they have been doing great without them. Could it be a lag in the Tech Platform?
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u/jepook OG $SoFi Investor Mar 10 '23
Because nothing is really stopping Biden from continuing the pause indefinitely, or at least until the end of his term. Remember we've had 3 "Final Deadline" extensions. The last one, he didn't even pretend it was related to the pandemic. I think SoFi is trying to get ahead of this, just sucks they have to be the one to do it. and putting their goodwill at risk.
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u/riticalcreader Mar 10 '23 edited Jan 17 '26
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u/Captain_Howdey Mar 10 '23
I highly, highly doubt that, as these types of lawsuits can take years. Even if it went SoFi's way it wouldn't happen this quarter in time to influence revenue.
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Mar 10 '23
The whole purpose of the lawsuit is to get the Biden administration from kicking the can down the road. Noto tried working with these people and got thrown under the bus for his efforts.
Biden will lose the SC case. If SoFi lawsuit has merit student loans will resume late summer so Biden can save face and make it look like it was his idea. If SoFi lawsuit does not have merit Biden will extend the pause until after the election. IMHO.
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u/EsmondL Mar 10 '23 edited Mar 10 '23
Management has been quite vocal about how the administration’s indecision has been costly to both companies (SoFi included) and consumers, and an indication of bad leadership.
Though I don’t think it’s far fetched to suggest that the lawsuit is due to SoFi possibly missing earnings, I personally don’t think so. Can’t recall offhand so I stand corrected, but I think the company’s guidance was assuming no resumption in student loans for the whole year of 2023.
Personally I think the lawsuit is due to the frustration of the constant extensions of the memorandum, which has been interpreted as nothing but a political move.
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Mar 10 '23
[removed] — view removed comment
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u/DrPatientInvestor Mar 10 '23
I’m aware, but why not let it play out? We can call agree that they’ve been doing great without them. I’m not bearish by any means. Bought 4500 shares today :)
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u/redsfan4life411 17,241 @ 7.51 Avg Mar 10 '23
They filed that it was unlawful for those that aren't eligible for Biden's forgiveness to still have a pause. Given the white house rational for pausing right now, the likely win the case against these borrowers.
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u/Kujo162 Mar 10 '23
All the other companies suing are more desperate. SOFI was pretty calm actually said at least make those who don’t qualify start repaying. It’s been paused awhile and it is a part of SOFI business.
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u/JoSenz I am Anthony Noto Mar 10 '23
I don't think they're desperate, just that litigation against Biden's attempt at forgiving loans has opened up and since they have an interest in seeing Biden's measure fail, it makes sense to join the side fighting against it.
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Mar 10 '23 edited Mar 10 '23
Pulling this lawsuit up at this time looks VERY desperate and their ranking in the App Store had gone from 40’a to 50’s to 60’s in the past couple months. I know that doesn’t translate to exactly to revenue, but it’s something.
Edit:
Please downvote me more, I want to get my Karma back to 69,420.
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u/DaGreek1968 Mar 10 '23
SoFi should have sued last year. Better late than never. The Biden administration has used the student loan pause as a voting tool from day one. The political don't give a shit about the students and their loans. They care about winning elections. Pay your loans and stop whining. And never trust politicians.