SoFi Stock | The Biggest Problem With SoFi

SoFi stock has been tearing up the charts as cheerleaders mindlessly push shares of SoFi, though it's unlikely most can answer one simple question - what does SoFi do? A better question would be where SoFi's revenues come from, and 2/3 come from unsecured loans (43% of which are personal loans). With unsecured consumer debt at an all time high along with interest rates and a lot of irresponsible loan recipients asking for the government to "forgive" money they rightfully borrowed, this isn't exposure we want anything to do with. The only hope would be that SoFi's other two revenue segments - Technology and Financial Services - grow enough to diversify away their strong dependence on unsecured consumer loans. Should all these HENRYs start running into problems because many are dumb enough to live paycheck to paycheck, it's going to wreak havoc on SoFi's balance sheet where lots of this debt sits because institutions no longer have the same appetites for these securitized loans. $SOFI stock is one we'll be avoiding going forward.

RESEARCH PIECES USED IN THIS VIDEO:
1. Is SoFi Stock a Ticking Time Bomb? Hard to Tell.
2. Why is Upstart’s Stock Price Soaring?

CHAPTERS:
Intro
What SoFi says they do
What SoFi actually does
Next generation banking
Figuring out SoFi's products
How does SoFi make money?
SoFi's big lending problem
Technology and Financial Services
SoFi's many competitors
The many external risks
Conclusion

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#SoFi
#SoFiStock
#sofistockprediction
$sofi

[Nanalyze]

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[EzraWildes]

Would love to see you debate/talk with some of these YouTubers - future investing etc. think it would be very interesting and that u could both learn from each other

[Dan-Weston]

Another great video, thank you for shining light on this troubling company that so many finance youtubers have wrapped their branding around. You are not alone, there are investment communities that see through SOFI BS story.

[lawrencethomass]

I appreciate your take. Sounds like you have a bear thesis on the company that you were looking to support would like to hear some of the bull factors also, like student loans coming back on line the possibility of them, holding the loans for sale being more profitable for them at this time Also having a very good CEO with huge insider buying .stock has had a massive run so some consolidation and pullback should be expected. I believe 92% of their deposits are FDIC insured they also say they’re going to be profitable by the end of the year, which would be a Big plus. Thanks again new to your channel

[dansal]

Any update on your thesis for SoFi or is it still a company that you would avoid? I know on twitter you also didn’t like NU Holdings which is somewhat similar to SoFi with better fundamentals so far.

[GMThePeople]

It's hard to understand the balance sheets of banks & even insurers these days, with the quick infini-xing of the Fed Funds rate from basically zero to ~5%. Fractional reserve banking is always a good racket, until it isn't.

[Ghjgdsfh]

I love it as q service. I switched from Bank of America to SoFi. Especially while living abroad. Some great fearures like a yield on your savings account. No fees etc. I'm not arguing against your thesis, even though i disagree with it, just a point on how user friendly and consumer oriented they are as a business. Thanks as always for the videos.

[Longtack]

I appreciate your critical bluntness, e.g. RobinHood

[Ananth.Pillai]

For the last two days, I have been thinking whether to buy Sofi or not. Your analysis solidified my understanding on this company. Though this is one year old, I believe the company’s principles and fundamentals still does not sound good.
I am not buying this.

[quanquan]

Nice review of Sofi business.
Actually the points you have mentioned about competition, and conflict of interest applies to the entire banking industry as a whole
i.e. Banks acting as good guys and bad guys

[paulBIOgeek]

Why bother with SoFi with so many other opportunities out there to invest in?