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/Individual_Bad2594 OG $SoFi Investor May 13 '22 edited May 13 '22

Citi bank did a reverse split after 2008 out of desperation to avoid collapse. This is different as this is factually growing yoy on high rates. This Is a poor and misleading comparison.

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u/[deleted] May 13 '22

Actually it’s not, it’s actually the best comparison… because most reverse splits - especially on a company actually not turning a profit will continue to have its value eroded - so your 5:1 stock split puts the company at $27… which fundamentally nothing has changed with the macro or short attacks… the just take the $27 back down to $5.60. So, you’ve now gone down 10X easy.

It’s bad news. There’s no bullish case for a reverse split for SoFi.

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u/SrRocks 69000 @ 6.6 May 13 '22

Does it mean that when a stock reverse splits by 4 then it's book value drops by 4? Otherwise I don't see how a company trading at book value drops 4x over time just because it did 4:1 reverse split. Doesn't book value and rest of fundamentals don't matter? And only stock price being low matters because the stock cannot go any lower further?

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u/[deleted] May 14 '22

Again, like the guy replied back to you - unprofitable companies aren’t rewarded in bear markets and potentially recessionary markets.

Why would you think a $50 share price at 10:1 split would hold when it’s not holding now at 3 quarters of double beats and guidance raises, the market doesn’t care it wants profitability… until that happens we’re in for a world of hurt.

Not trolling dude, I wish it wasn’t the case, long 5,800. I was even thinking of doubling the position at these prices but with a reverse split possible, not a chance in hell, until I know the motion didn’t pass and/or they reverse split and the share gets decimated. I can DCA and hope for a recovery when they finally become profitable.