Stockchase Insights SoFi Technologies SOFI-Q BUY ON WEAKNESS Jul 31, 2024

Firmly believes in the CEO. Is not an interest rate stock, but a tech one.

SOFI has had several pieces of good news recently, and is now up on the year (slightly) after being down significantly. It is up 75% from its August low. The momentum shift is impressive, and EPS is expected to more than double next year. If it can execute, the mid-cap stock could get more attention. Estimates have been ticking up, and the last quarter nicely beat estimates. We would be OK taking an initial position in the $9.75 range. 
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They got some new, big backers. Have a great CEO. It's breaking out, so shorts will have to cover.

Online banking. In that space, he prefers bricks & mortar and steady-eddy banks that are diversified coast to coast. In the US, he owns JPM.

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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Is up 79% in the past year. Sell half, take profits.

It reports Monday. He's long liked it, but short-sellers keep it down for no reason. He expects good numbers. Likes the CEO.

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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It's moved up because it's much more of a service provider stock than a lender now, but it needs to digest. Let shares come down first before stepping in.

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.