SoFi stock despite strong results, outlook tumbles

SoFi stock fell on Tuesday despite a strong third-quarter earnings report and strong outlook.

SoFi shares fell more than 9% to 10.11 in morning trading, falling back to its 21-day line. A Deutsche Bank analyst cited unexpected-than-expected revenue growth for the fintech leader's technology division.

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SoFi reported net income of 5 cents per share. Revenue rose 30% year over year to $697 million. Analysts were expecting earnings of 4 cents a share on revenue of 632.3 million.

The company said it now expects adjusted net income of $2.535 to $2.550 billion, “which is $85 million higher than the prior guidance range of $2.43 to $2.47 billion,” SoFi said in a statement.

“This quarter was the strongest quarter in our history,” CEO Anthony Noto said in a statement. “Our results reflect how SoFi is consistently achieving sustainable growth, how our innovation and brand building is attracting more members and clients to our platform than ever before.”

Deutsche Bank analyst Mark DeVries said growth in SoFi's financial services business “shows that they're growing in the right areas, and not just chasing top-line growth at some point.”

But the company's revenue growth in the technology segment “was slightly lower than expected,” DeVries wrote in a note to clients.

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