SoFi Technologies Stock Plummets After Plan to Sell Convertible Bonds

SoFi Technologies stock plummeted 11.5% after announcing a $750 million convertible debt offering, leading investors to fear cash constraints and potential dilution of their ownership stakes. However, the move could actually decrease interest costs and increase profits, with plans to redeem high-cost preferred stock and enter into transactions to reduce potential dilution. Despite short-term concerns, the company's long-term profitability outlook and growth potential may present a buying opportunity for investors.