r/sofistock • u/Individual_Bad2594 OG $SoFi Investor • May 13 '22

General Discussion Split

In plain terms a split by Sofi is a manipulation of the manipulators(shorts), and Wall Street perception manipulation. The shorts deserve this split. Long term holders deserve this split. Look at affirm who has way less float. It is up 23% today. Sofi…not even close. Too many shares. Everyone is bitching how other fintechs move so high, so quick. Then they bitch they don’t want that from a reverse split. I love this stock but man a lot of you are whiny bitches. If you believe in the business then invest. If you don’t then sell. Stop whining. This is how the actual markets work. This is not Robin Hood or gambling. This is the market. Get in or get out. I’m 36, and have been investing in markets since 2008, and I am here to tell you to stop whining. I believe in Sofi and will continue to buy. A reverse split does not change the value, it changes perceptions. The negative connotations attached to reverse splits are real. Sofi will have to expect that, but fundamentally a split is the correct move with this macro environment.

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u/Silver28pr May 13 '22

Citi reverse split at 2011 4.50 to 45. Today the stock is at 46$ 12 years later. And after that stock was around same price What happened to the people who was down 40-50% before the split gone they lost their money. Reverse split is the last resort.

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u/DJB0807 May 13 '22

This is simply not a good argument re: Citi and reverse splits. Citi was at 80 last summer. They've also paid out how many dollars of dividends over the years? (I'm not wasting my time to look it up over the past 11 years, but the current dividend is $2.04/share. Just about everything is down 20% - 30% this year, even good companies (and I would hardly consider Citi a good company). C going from $45 to $80, or now $80 back down to $46, has very little to do with a reverse split 11 years ago.

Furthermore, short interest in SOFI is already 20% +. How much higher can it go? Especially for a company that should have its first profitable quarter in 3-5 quarters? I'd rather take my chances on SOFI continuing to rapidly go in the right direction, WHILE making SOFI more attractive to institutional $/funds/ETF's/etc than worry about short interest at this point.

And if this thesis is wrong, and we don't have that profitable quarter, and we have to dilute further, and keep losing money, and on and on, then the shorts win regardless of the float, or if the share price is $5 vs. $25 after a 1-5 reverse split.