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SoFi TechnologiesSOFIBUY ON WEAKNESSJul 31, 2024
Stockchase InsightsStock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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Be patient with it. He's owned this for a year when it was going sideways. It can take time. There's concern with the consumer. They do buy now, pay later. Good growth and decent PE, but higher risk.
Ryan Modesto
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Premium contentSoFi reported a revenue of 1.27B, which is a 12.3% change from the previous quarter. An increase in revenue typically indicates growing demand for the company's products or services. This positive change in revenue is a good sign, suggesting that the company's sales are moving in the right direction. Gross Profit stood at 952M, marking a 12.7% change since the last quarter. Gross profit showcases the efficiency in production and sales processes. Social media mentions are up 7.2% in the past 24h.
Is a long-time SOFI bull. Shares are +137% in the last 6 months. Still has upside, driven by genuinely great numbers: membership has soared from 5.22 million in 2022 to roughly 12.99 million today while revenue has more than doubled in that time. Also, is enjoying excellent earnings growth, and the company is now profitable. It looks pricey at 81x PE, but is reasonable at 107% earnings growth. SOFI has beaten sales and EBITDA ever since going public in 2021. They keep expanding their banking services until it's become more of a full-service financial institution, trusted by younger customers. Good to buy now after a pullback. Don't expect another rally like this year, but will perform well over 3-5 years.
With a 76% one year gain, it was not overly surprising to see some profit-taking. The quarter was solid as was the outlook and commentary. There was record member growth and loan originations. New products/services add more potential. We think it is buyable and are warming up to this name.
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We have done more work on its ability to compete in a crowded market and are more comfortable there. The recent results and the stock momentum have also certainly been big positive factors. It has good potential, we think, if it can continue to execute. One minor concern: it is a very very popular social media stock. While still relatively small, it is hardly unknown. This is not necessarily bad but can increase volatility if the majority of holders are trading/retail.
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SOFI generated positive EPS of 1c beating analysts estimates that the company would breakeven for the quarter, and improving from a 6c loss in the year prior. Total revenue also beat estimates of $564.39M coming in at $598.62M displaying a 20% year-over-year increase. The company also increased guidance for 2024 expecting EPS between 9c-10c, ahead of estimates of 8c. Q3 guidance was also 1c greater than analyst estimates of 3c. Management expects to add 2.3 million new memebers in 2024, dispakyin 30% growth. This looks to be a solid quarter for SOFI, beating estimates and upping guidance but the market reaction has been muted.
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