AI Sucks the Oxygen From the Room. Should You Still Buy SoFi Stock?

Welcome to another brand-new episode of our Hypergrowth Investing podcast, where we get candid on SoFi’s (SOFI) prospects in 2023, ChatGPT3 and the AI Revolution, TikTok government bans, and whether Apple’s (AAPL) XR headset can do for the metaverse what the iPhone did for the internet. Buckle up, friends, it’s going to be a long one!

If you’re a sports fan, then you probably know that the college football championship game just happened a few nights ago (and boy, it wasn’t even close, was it?). But more importantly, this championship game was held at SoFi Stadium. Since then, SoFi’s been in the spotlight – and rightfully so.

Great products make for great businesses, which make for great stocks. And that’s exactly what you have with SoFi. Its world-class digitally native consumer finance app is a modern-day dream. And because the company doesn’t have to maintain a physical presence, it can pass those cost-savings onto customers through better yields and higher interest.

We see this as a company that will grow 20% per year into 2030. Yet SOFI stock is trading at 0.9X its book value. Traditional banking giants are trading at larger multiples – while growing at just 2% per year. And it’s all thanks to the major risk-off sentiment that began in 2022.

As soon as that sentiment abates – and it always does – SOFI stock could rocket in a hurry.

The AI Revolution Is Here

Pivoting to artificial intelligence, which we’ve talked about a lot since the launch of ChatGPT3, OpenAI (the company behind that product) is reportedly looking to raise funds at a $29 billion valuation. What does this mean for AI stock investors?

Well, in 2021, the company was worth $14 billion. Less than two years later, it has increased its value by more than 100%. And we’re confident that the launch of ChaptGPT3 was a tipping point for the AI Revolution.

Coding, music creation, copywriting, storytelling – there are already a plethora of things you can do with AI, even in these early stages. And we just hit the fast-forward button.

Considering the state of the markets and the stressful macro backdrop we had in 2022, the launch of many AI platforms went unnoticed. While they’re flying under the radar today, they’ll soon attract tons of users – and value – leading to a categorical boom in AI.

Some trends are unstoppable forces, and it seems that AI is one of them.

TikTok Tops Out – Should You Buy SNAP Stock?

First off, we see short-form video as the future. It’s no secret that we’re big fans of TikTok, but the platform keeps getting banned in certain places, namely on government devices in various U.S. states.

Now, this doesn’t mean TikTok is done. But we do think its ascent is over. Bans are one thing, and widespread media coverage is another. If all media outlets agree on anything, it’s that TikTok is sketchy. And their coverage is likely to encourage users to migrate elsewhere.

As a result, platforms like Snap (SNAP) and Instagram will probably see their usage soar over the next two years. TikTok’s descent will act as an engagement tailwind for these platforms, and they’ll return to continued growth very soon.

The companies that will really thrive in this environment are those that tap into next-gen technology to augment user experience in a way that others cannot, and we think Snap really excels on that front. Get bullish here!

Watch the full episode of Hypergrowth Investing above.

📍Timestamps📍
00:00:00 - Intro
00:02:28 - SoFi vs. Everybody
00:13:45 - The Space Economy
00:25:28 - Metaverse Killer-App
00:35:04 - AI Everywhere
00:47:50 - TikTok Banned? Oh Snap!
00:58:56 - EV Stocks
01:02:28 - Stock Boom 2023
01:08:28 - Fan Questions!

🎧Listen to the Podcast🎧

#sofi #ai #metaverse #evstocks #stockstobuy

[mayacho]

Once you actually start trading live and start to have profitable weeks/months. This kind of video will really start to make sense. So if you don't think it's helping you now, just come back when you're knocking on the door of consistently profitable.

[sterlingcampbell]

I think Luke is a smart smart guy with a knack for feeling out companies and their place and momentum in the market. Too many other channels just focus on the numbers alone and don't consider peripheral factors.

[xaviercruzado]

It was better when you had the various chapters listed below the video instead of just having the "coming up" next topic

[alexandrade]

Hey Luke & Aaron, can you please discuss about Jamie Dimon changing his tunes about the economy when he first predicted an “economic hurricane” last July. He’s now becoming more optimistic supporting a soft landing and bullish for the market.

[ainsworld]

Is Luke referring to ASTS stock for starlit mobile internet

[andrewmacanada]

Instead of looking at the % of EV market, what about looking at your Tesla production increase plan against your estimate for the world new auto market for all drive trains?

[sterlingcampbell]

How do we get in on Luke's specific stock picks? Anybody have a link?

[cslow]

Hey Aaron and Luke, thanks for your answers. Luke again gave a very encouraging /bullish outlook for stocks in 2023. However, again shortly after this episode's recording, World Bank came out and warned of a looming global recession, which could be bad for stocks, isn't it?...So what are we missing here??
Thanks again.

[cslow]

Hi Luke, just a few episodes ago, you said OPEN is safe, they have enough cash to last for 2 years etc.
However, last week, you answered to a fan question and said among the 4 stocks the fan had picked, OPEN has the highest chance of bankruptcy.
Can we now have an honest and open (pun not intended) take from you on OPEN?
Do you still see OPEN is able to last 2 years, or do you think the end is much sooner? Thanks.

[alexandrade]

The CEO of Ariel Investments John Rodgers said this week, the US will avoid recession and expects markets to rally in 2023. Any industries or market caps you see potential breakouts in?

[pranaliu]

No 20yo wants to not have a banker to talk to.

[cdpridg]

Dawgs are a dynasty..SEC not going anywhere..Go

[rune]

Rivian lucid and fisker 🤡 Completely ignoring the Chinese which are eating Tesla's lunch.