SoFi stock dropped Tuesday despite a strong third-quarter earnings report and robust outlook.
SoFi shares shed 6.4% to close at 10.47, retreating back to its 21-day line. A Deutsche Bank analyst cited weaker-than-expected revenue growth for the fintech leader's technology segment.
SoFi reported net income of 5 cents a 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 revenue 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 durable growth, how our innovation and brand building are attracting more members and clients to our platform than ever before."
Deutsche Bank analyst Mark DeVries said SoFi's growth in its financial services business "appears to suggest they are growing in the right areas, and not simply pursuing top-line growth at any margin."
But the company's revenue growth in the technology segment "came in slightly below expectations," DeVries wrote in a note to clients.
