SOFI - Hyper Growth & Crushed?! TIME TO BUY SOFI STOCK? Fintech pioneer!

Is it time to take a flyer on SOFI stock! They're rapidly taking market share and improving their loss profile yet the stock is still near its all time lows. Why they're growing so quickly and what I want to see!

.....

If you're ready to take charge of your financial journey, check out:

💡UNRIVALED INVESTING MEMBERSHIP includes frequent letters with new stock ideas, stock market commentary, real-time portfolio updates, and a community of likeminded investors on Discord (for annual subscribers only).

🐦 Twitter: @UnrivaledInvest

....

📽️ Have a priority video request?

.....

📈: Which investment brokerage do I use to buy and sell investments?

DISCLAIMER:
This video is purely for informational and educational purposes. This is NOT investment advice. You should not treat any opinion expressed by Daniel or Unrivaled Investing as a specific inducement to make a particular investment or follow a particular strategy but only as an expression of opinion. Daniel and Unrivaled Investing are not under any obligation to update or correct any information provided on this website or in these videos. Daniel and Unrivaled Investing’s statements and opinions are subject to change without notice.

You should be aware of the real risk of loss in following any strategy or investment discussed in this video or on this website. Strategies or investments discussed may fluctuate in price or value. Investors may get back less than invested. Investments or strategies mentioned by Daniel or Unrivaled Investing may not be suitable for you. Past performance is not indicative of future results.

INTERACTIVE BROKERS DISCLAIMER:

None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Investment involves risks. Investors should obtain
their own independent financial advice and understand the risks associated with investment products/ services before making investment decisions. Risk disclosure statements can be found on the Interactive Brokers website.

UNRIVALED INVESTING is a customer of Interactive Brokers. Interactive Brokers and UNRIVALED INVESTING have entered into a cost-per-click agreement under which Interactive pays Daniel a fee for each click-through of the Interactive Brokers URL posted herein.

[unrivaled]

Take charge of your financial journey with expert investment insights, stock ideas and market commentary at www.unrivaledinvesting.com! Thank you to all the UNRIVALED INVESTING subscribers that keep this channel going!

[Chris-fedn]

SOFI is paying you 2% and allowing you to borrow against your own assets on margin for 4.5%. That is a great value proposition for the customer. Sales and marketing are to attract members that stick and then cross sell to other products for free. Deposits growing at 100 million per week allowing SOFI to retire huge amounts of debt. I use 3 products. I have a very large position in SOFI as you just said "this could be a trillion dollar comapny" and that is totally true considering their growing service offerings and I absolutely believe it will happen. They are a very nimble company like the Bruce Lee of banking.

[baldlebowski]

let this sink in. Amazon was .79 cents after the 2000 crash dropping 80 percent. They are a growth company and it's growing pains my brother. I'm definitely not watching on the sidelines with this one. My only regret is that I can't buy fast enough. It's time to buy.... love SoFi.🤙🍷

[joyluna]

Sofi is a growth company. Eventually, soon it will be profitable. Bank charter is in its first year. Also, Latin America expansion is going to be big, Mexico, Colombia, Brazil.

[thickcheeks]

Big SOFI bull here, thanks for the vid you made some good points.

[getbusyu]

❤️ the video, but I'm already in 30k and dca'ing down...
I have the accounts and ❤️ them, I'm way past seeking student loans and don't need to personally use any of the many products offered...

But I saw this as the 🍎, Microsoft, Google, Tesla opportunities I've missed in the past that I've regretted not pulling the trigger on...

I'll continue to purchase under $6.00 a share and hold this asset for 5 years.

[ms]

You have to consider that SoFi’s strongest business was student loans which was away for more than 2 years and will now return in January which should bring them to profitability within next 1-2 years.

[unkownuser]

SoFi is great long term, but opportunity cost will make most people sell before that time arrives.

[dooleygng]

This really is a no-brainer buy. Anyone touting anything less is just trying to nitpick poor arguments. If you have a probability-focussed mindset this is one of the most attractive growth options in the market. If you can’t see it, you need to look again and think a little more.

[davidchen]

EBITA is the best measure you can ask for, yes it adds back the stock compensation but in the same time the net income as the staring point is lower due to the stock based compensation adding them back to remove the non-cash expense makes the perfect sense.

[jlmark]

SOFI is paying me 2 percent on my no fee checking, with direct deposit.

[Zendefone]

To know if SoFi can be profitable is simple, just add back in S&M and R&D expenses. Because both of these are investments for future growth rather than operating cost to run the business.

[orr]

If they had several record breaking earnings reports and you see the massive growth then why would you wait til they become profitable to load up instead of buying now while the price is cheap and reaping the rewards in 2024 when they become profitable? and 2025 when they’ll have a full year of profitability? make it make sense.

[brooks_]

You raise a red flag with the amount of money being spent on S&M, isn't that normal for a growth company trying to become a household name?

[RabbiRabbit]

I’ve been a buyer sub 10 bucks I’ve definitely been a buyer of anything under 6. It’s one of the few pre profit growth stocks I’ve held and didn’t sell before everything crashed.

[a_anonymous_m]

Based on the comments, they certainly seem to be getting a lot of money flowing in from investors.
I've been eyeing then lately to initiate a position. Pretty sure I'll be buying soon if it keeps dropping.

[ancientscallion]

By far you’re one of my favorites. I love SoFi’s growth potential and I’ve always liked your unbiased opinion on stocks, you really hit those weaknesses and flaws🎯 I’ll keep adding until I hit my goal size position and then slowly watch how they perform. Thank you Daniel!

[ChristopherHoeger]

Hey Daniel, I was really looking forward to your valuation spreadsheet but was surprised you didn't include it. Especially since SoFi is currently trading at $5.74 and book value is $5.66 and tangible book value is $3.86. For a company growing at such high CAGR, that seems like it is very reasonably priced. A couple more things to consider. First, they are actually extending their holding times so they have been selling less loans in Q1 and Q2 than what they normally would sell in order to hold more on the balance sheet. In Q3 and Q4 they will get back to equilibrium, so both revenues and profits will get a really healthy bump in 2H 22. Second, I also did a detailed write up on the effects of student loans coming back and my modeling points to profitability in 3Q23. I did a very detailed writeup that I think you'd be interested in seeing. Not sure if I can post the link here, but you can google "Hoeger sofi student loan catalyst" if you're interested, the article is posted on seeking alpha. I think if you read it through it might be enough to convince you it is worth a teaser position. Always appreciate your content and objective viewpoints.

[RenewableEnergyInvestments]

I generally like your analysis and opinions and very good job on this one too! But here, I question your focus/proclamation that SoFi needs to prove profitability. In fact, I would argue the exact opposite. Grow at all costs is exactly what SoFi should be doing IMO - their goal is to be the winner that takes most of a gigantic TAM - not just mediocre player in a competitive banking industry. Right now may be the only window of time for the company to achieve dominance, as industry transitions and is disrupted by digitalization. If SoFi wasn't spending aggressively on marketing, then I'd be concerned. Perhaps the better question is: would their loan business be profitable if they turned the growth tap off and stopped reinvesting aggressively to grow. In the context of a digital bank, I consider marketing to get long term clients to be an "investment". At this point, it is what it is: a high risk, high reward play and I believe management should run it as such.

[robertjirsaraie]

I imagine there will be a time when they optimize their business for profitability but I do think they are doing the right thing by prioritizing for growth. The dilution is a killer but more motivation to get a job with them! SoFi for life!!