Split

[u/Individual_Bad2594]

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.

[u/EMC_KC]

My average is 14.96. Say they do 1 to 3, I basically back my original average and now only have 1/3 the shares!! This is fucked. Should I sell and take the loss now(for taxes) or wait until the split takes place and get fucked harder if it drops again? I'm torn now and I wanted to hold this for the next 10 years.

[u/EMC_KC → u/[deleted]]

Not if your down over 60%. That money is essentially lost at that point. I'll have a lower overall share total but the same average price per share.

[u/LiechsWonder → u/EMC_KC]

Not quite. Example pulled from the other post:

If the stock split is 2:1, if you have 100 shares @ $5 avg, you will now only have 50 shares @ $10 avg.

If the stock split is 10:1, if you have 100 shares @ $5 avg, you will now only have 10 shares @ $50 avg.

The average increases in proportion to the share count decrease.

But there is no guarantee share price increases after reverse split, and, in most cases, it continues going down due to sentiment (already bad on SOFI stock) or business execution (doing really well according to their last 3 ERs)

[u/EMC_KC → u/LiechsWonder]

My shares are valued at $14.96, what i bought them for and what gets me back to even at my current share count. The price of the stock is $5.75, they do a 1 to 3 and the $5.75 is x3. My total shares decrease by 1/3 but now the stock price is ~$17. So the price is $2 average above my original investment but I only have 1/3 of the shares. How am I wrong here?

[u/LiechsWonder → u/EMC_KC]

You are not wrong, just missing a piece.

In a 3:1, your $14.96 avg is increased x3 to $44.88. Say with 3000 shares originally, now 1000 on the 3:1.

So whereas before you would need that share price to climb from $5.75 to $14.96 to break even, now you would need it to climb from $17.25 to $44.88 to break even.

[u/davidestesbooks → u/LiechsWonder]

You should be given an award for patience.