Has $SOFI been running the race but has yet to win?

Submitted by BabyKraken1999 t3_zx5bpi in wallstreetbets

SoFi Technologies is a leading fintech business that operates a *one-stop-shop banking platform for its users.

*One-stop-shop: A firm that offers multiple products or services to its customers under one roof.

SoFi's Goal

  • Offer everything its customers need.
  • Abandon your current bank.

In 2011, the company primarily dealt with student loan refinancing. But they have grown into much more than that.

They Now Deal With

  • Personal and mortgage loans.
  • Investment services.
  • Banking.
  • Credit cards.
  • Insurance.

Their Growth Follows Their Business Expansion

  • 1.52B Annual Net Revenue (51% YoY growth).
  • 4.7M Members (61% YoY growth).
  • 7.2M Products (69% YoY growth).
  • 124M Galileo Accounts (40% YoY growth).
  • 1.3M Lending Products (24% YoY growth).
  • 5.9M Financial Lending Products (83% YoY growth).

Bullish Signs and Catalysts

  • Interest rates turn-around.
  • Student loan moratorium (ending).
  • Insiders buying.

Back to RealityThese growth numbers are great, but the company reported a 74M income loss last quarter**.** Since growth stocks have been on the investors' sidelines lately, SOFI is now -60% from its price a year ago. Nasty.**70% of SoFi's revenue comes from its lending business.**Building a new, highly profitable business in competitive markets can take time. But will they? Is SOFI wasting time and resources by developing businesses outside its core lending operation?

MY PORTFOLIO - https://www.jika.io/u/Noah%20Sebastian

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Tallywacka t1_j1yiauc wrote

I bought some last year and was down, it dipped under $5 not too long ago and I bought a chunk which I sold when it went under $7

I think there’s decent profit potential picking it up below $5 but I think I would only want to hold long term on house money this damn thing is all over the place

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Belichick12 t1_j1z3cfq wrote

Another chamath spac bag he dumped on retail

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rgbhfg t1_j21zjes wrote

If it weren’t for the government stimulus many of the tech ipos would have been flops

0

thatguy201717 t1_j1znnmz wrote

Problem with SOFI is that it won’t be profitable until the back half of 2024….terrible time in the markets for unprofitable companies. I’m in at 4.99 can’t wait to eject once we get an oversold bounce back

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VisualMod t1_j1yh83l wrote

>No, I don't think SoFi is wasting time or resources by developing businesses outside its core lending operation. The company's expansion into other areas such as banking and investment services indicates that it is aware of the need to diversify its income sources in order to sustain long-term growth. This strategy should pay off in the long run, although there may be some short-term growing pains associated with it.

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FollowingOpen6317 t1_j22mjsi wrote

Sofi has a checking account apr of 3.5%, that's good enough for me to use it!

1

farloux t1_j2429di wrote

Checking at 2.5% and savings at 3.5%. Both in the same SoFi “account” but limited to savings account restrictions like frequency of withdrawals.

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Retardinvestor24 t1_j231mmc wrote

I’m pretty sure they’re making some money from owning the football stadium, right?

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Ok-Geologist5545 t1_j23f0e7 wrote

They don’t own it, they have naming rights for it. Stan Kronkey owns the stadium. SoFi had to pay to have their name on the stadium.

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Ta323Ta t1_j21omdl wrote

Sofi is muff cabbage

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