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Shares of SoFi (NASDAQ:SOFI) are down by over 7% today, despite a positive note from Mizuho Securities. There is no company-specific news to explain the decline in SOFI stock, so it appears that shares are falling in correlation with the general market's decline.

Mizuho analyst Dan Dolev recently met with SoFi's CFO Chris Lapointe and Investor Relation's Maura Cyr. After the meeting, Dolev reiterated Mizuho's "buy" rating and price target of $7. The analyst was also reassured by the company's hedging measures against rising rates and the strength of its high-FICO score borrowers. Dolev concluded that he continues to believe in SoFi's "resilient business model & strong execution."

Meanwhile, the economic backdrop has been anything but pleasant for SoFi. With higher federal funds rates, consumers will have to pay higher interest on all types of loans, ranging from homes to personal to student-based. Rampant inflation, as well as higher rates, has hurt consumers' appetite to borrow money and take out loans as well.

Why Is SOFI Stock Plunging Today?

Some of InvestorPlace's top analysts have spoken out on the fintech company. Senior analyst Luke Lango believes that SoFi could hand out 25x gains by the end of the decade. He lauds the company's revenue and average revenue per user (ARPU) growth and even goes as far as calling it the "Amazon of Finance." That's not a light statement to make. Furthermore, SoFi offers a range of products that seek to replace the legacy banking system, paving the way for expedited user growth. Lango's estimate of 25x gains by 2030 would imply a market capitalization of $110 billion and a customer base of 20% of the over-18 U.S. population.

On the other hand, Louis Navellier has a bearish view of SoFi. He notes that shares of the company have not performed well since it was announced that federal student loan repayments would resume on Jan. 1, 2023. In addition, Navellier explains that the company has not been taking market share from traditional banks at a pace that many had expected. Since SoFi is unprofitable, it is especially susceptible to higher rates. With unprofitable companies, the basis of their value is derived from future cash flows discounted back to the present value. When rates are up, these cash flows are discounted at a higher rate and thus have a lower value.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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