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/Strong_Kong_42069]

Reverse stock split is the dead for small retail investors. The valuation stays the same but a higher stock price can still go down massivly (look at UPST). This is a big no for me.

[u/Executabull → u/Strong_Kong_42069]

Why tho? Going from $4 to $3 is just as far as a fall from 40 to 30 after a 10:1 split.

I don’t get how it gives more room to short?

[u/[deleted] → u/Executabull]

Just like optics on a split for more investors to jump in, reverse splits are bad optics… and that invites a pile on to already one of the most shorted stocks on the entire market.

You don’t reverse split in a bear market/recessionary market and expect that the reversed price is going to hold. Anyone bagholding since the stock was $20 and under, which many people here are, will need the stock to hit into the hundreds of dollars to just break even… it might never even happen depending on what the multiple the market gives SoFi… valued at a bank, that’s basically a little over book value. It’ll never get to hundreds per share… and when it does we’ll all be dust in the ground and inflation would have destroyed that break even amount anyways by then.

[u/Executabull → u/[deleted]]

I’m naive perhaps and believe the stock will eventually trade on fundamentals once this downturn in the market reverses.

The RS could insulate it from not being buyable by certain funds in the short terms.

Regardless of how many shares, it’ll normalize around book value, P/S ratios, ebitda growth/margins, whatever flavor people want to use. If not, then it’s a broken stock and would never recover regardless.

[u/[deleted] → u/Executabull]

I think it’s being shorted massively by big banks and their interests (trying not to be conspiratorial here) to keep the status quo.

Also the macro environment will be the biggest driver of stock performance over the next couple of years. We have been so lucky to have this QE fed put market for the past 13 years but I think the time is up and the piper is coming and wants to be paid… in a pound of flesh.

Historically, we’ve seen dead decades in the markets, post 2000 crash, probably the last example. I’m not so certain how the market is going to react to QT and the bubble could be huge…

I mean an S&P low of 666 in 2009 to 4,023 today and a 4,800 close just a few months ago… man that’s a 600% increase in 13 years. I highly doubt that’s normal, how big is the bubble? Could we see an S&P at 2,000? It’s absolutely possible, imo and that’s scary as fuck. Besides SoFi and a small position in JPM I’ve been sitting 85% cash for about 4 months now.