Today's video focuses on SoFi Technologies (SOFI +1.31%) and the updated guidance management shared after the latest extension to the federal student loan payment moratorium. I also discuss some updates to Unity Software (U 3.15%) and recent news from one of its largest competitors. Here are some highlights.
- SoFi's management updated its full-year guidance to $1.47 billion in adjusted net revenue and $100 million in adjusted EBITDA. The update represents a decrease of $100 million in adjusted net revenue and $80 million in adjusted EBITDA from its prior guidance. The new guidance also assumes that the student loan moratorium will not end in 2022.
- Management reassures its investors that SoFi is still a growth story. Even with the decrease in guidance, SoFi is still expecting roughly 45% adjusted net revenue growth, doubled adjusted EBITDA, and tripled margins.
- Growth tech stocks have been on a wild roller coaster this week. Unity's stock price has dropped over 15% from Tuesday's high to Thursday's low. Unity has also seen an increase in competition from Unreal Engine, Unity's most significant competitor. Unreal Engine recently released Unreal Engine 5, an updated version of its game engine.
Click the video below for my full thoughts and analysis.
*Stock prices used were the market prices of April 7, 2022. The video was published on April 7, 2022.
