Cathie Wood's ARK Investment Buys $6.8M Worth Of SOFI: Retail Calls It 'Dead Stock'

(MENAFN- AsiaNet News)

• Through the ARK Innovation ETF, the firm purchased 362,911 SOFI shares worth $6.1 million. 
• The firm bought 42,809 shares of SOFI via the ARK Blockchain & Fintech Innovation ETF, worth about $717,100. 
• Despite Wood's purchase, retail traders are 'bearish' on SOFI stock.

Cathie Wood's ARK Investment Management purchased a significant stake in SoFi Technologies Inc. (SOFI) as the company's shares have declined about 36% this year. 

The asset management firm bought shares worth $6.8 million across two of its exchange-traded funds. However, retail investors are 'bearish' on the stock despite Wood's confidence in the company. 

ARK Investment Goes Big On SOFI Stock

Through the ARK Innovation ETF (ARKK), the firm purchased 362,911 SOFI shares worth $6.1 million. 

Meanwhile, the firm bought 42,809 shares of SOFI via the ARK Blockchain & Fintech Innovation ETF (ARKF), worth about $717,100. 

Retail Is Not Convinced 

Despite Wood's purchase of SOFI stock, retail traders are 'bearish' on the stock. 

One user said,“$SOFI this is dead stock.”

Another user said,“$SOFI Cathie Wood makes the most terrible picks!”

However, a third user said,“$SOFI people are strongly underestimating $SOFI's long-term potential. The stock is being completely ignored right now, while valuation is the most attractive it's ever been. The next leg higher will take us into the $50 range. I believe this is a $100B company by 2030.”

SOFI Valuation 

SOFI stock has a forward price-to-earnings ratio of 20x, near its all-time low levels. 

However, it remains high compared to its peers. Upstart Holdings Inc. (UPST) has a forward multiple of 8.2x, while Affirm Holdings Inc. (AFRM) has 16.1x, according to Koyfin. 

Wall Street Stance On SOFI

Meanwhile, the 12-month average price target on SOFI stock, per Koyfin, is $20.84, implying about 24.4% upside from its last close. 

Of the 25 analysts covering the stock, 11 have a 'Buy' or higher rating, while 10 have a 'Hold' rating. The remaining four analysts have a 'Sell' or lower rating on the shares. 

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