Is SoFi a Bargain Stock to Buy Right Now?
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- เผยแพร่เมื่อ 29 ก.ย. 2024
- SoFi has consistently produced impressive growth, but it unfortunately hasn’t yet translated into gains for investors. With the stock at a 52-week low, Fool.com contributors Matt Frankel and Tyler Crowe take a closer look at the banking disruptor to decide if it could be worth a closer look right now.
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Oh yeah, I had to add one thing. The argument about overhead costs. It "will" be cheaper to operate Sofi than traditional banks due to less head count and all associated overhead costs that a physical bank has. Its cost is very high, because it's giant product offerings. So... Once the revenue stream and products are fully built, the. The cost savings of being an Internet business (not just a bank) will pay off.
Correct. High initial fixed costs and that's why their income is starting to ramp so fast. Each additional $ coming in, a large portion drops to the bottom line.
Thanks
Declining interest rates will unlock this company. Its a cyclical business and they're setting themselves for the refinancing &mortgage boom thats about to come
This company get zero credit on their agility and every bear seems to miss the mark. Sofi lost their main revenue source and shifted to other loan options. They will shift again and loan where necessary. Its called pivoting. They have the mortgage business and when demand comes back they have a huge user base to sell to. Oh and they have digital native banking as a service in B2B which was completely ignored here. Its a buy
Impressive pivot from student lending for sure! At this point, I'd argue that it's more than a pivot -- they used the disappearance of student loan refinancing to create a banking ecosystem.
Remember July 10th. The company has a very clean balance sheet, personal loans with excellent Fico score, one of the most recommended banks for payment accounts (Service Fee Ratio), high retention rate, quick service. Shares changing hands. SoFi is going to hit 7.50 until 10th of July. In fact, I would choose this bank as a personal payment account over my current one just considering the amount of fees I have to pay. There is no reason why the stock is down.
Bottom line. Big banks don't want SoFi to succeed and take away their business. They're doing whatever they can to short it and spread FUD through no-name analysts.
Yes I rely on the shorts to bring the SP down to $5.0 again so that I can start dca again😎
I hope it backfires
The big banks are actually losing deposits to Sofi...Sofi market share continue to grow
Great Video. This definitely seems like a great entry point for Sofi Investors!
Can’t take the guest seriously if he thinks SOFI does auto loans. Did he really do any research at all?
To be fair, his point was valid (although I did jump in and clarify that SoFi is a personal lender). SoFi has higher-interest loans as more of its loan portfolio than say, Bank of America, and this is a legitimate risk factor.
Why are you bringing up Credit cards first when talking about Sofi....they haven't turned that around yet. I would of talked about 2026 eps guidance, the growth %, future of Tech...the other guys reasons for not buying are like not seeing the forest through the trees...and needs to do some more DD.
Management recently said that credit cards are in "full investment mode." And the economics could make it a game-changer if they're successful. But I agree with the growth %, tech platform, etc. There's honestly too much to discuss in a 10-ish minute video, of which I'm only speaking half the time!
Sorry, keep adding. The recession argument is actually worse than the cost argument (which is a problem. Now). If a recession environment, people want their money locked up and interest rates get cut. Two positives actually!
I'm a SoFi bull (as you can see in the video), but I think the recession argument has merit. Right now, SoFi's PL charge-off rate is worse than it should be -- it's higher than Amex's CREDIT CARD default rate. Not alarmingly so yet, but in a recession it could certainly get worse.
Dead money.
Loan revenue is 50%, bear case don’t acknowledge financial and software service.They do not offer auto loans.
Great chat. Have you thought of speaking on the Sofi weekly ?
Great video! I especially appreciate your inclusion of a dissenting opinion. Subscribed.
You guys missed to discuss the most promising and valuable piece which is Galileo. That’s like AWS is to Amazon. It will not recession proof income. She it differentiates it from a regular bank.
Agreed...mgmt told us all they're planning on a 50/50 revenue split with non-lending playing a major role. It needs to happen still but mgmt is confident and they always best earnings so credit where it it due
Thanks, Matt and Tyler, for your discussion and debate on SOFI as an investment candidate. It's not for me for all of the reasons articulated by Tyler. And it doesn't pay a dividend. Good stuff!
Fair enough. Totally agree it isn't right for everyone. But in 3-5 years when it starts paying a dividend (my estimate), keep an open mind to reconsider :)
Sofi RIP
1. This video left out the tech platform, which is a huge part of management’s thesis. 2. I think a discussion on the loan portfolio needs to include duration, credit box, and ability to sell loans to better understand risk. Thanks for the video.
Very solid point on the Galileo platform. A big part of my thesis for sure. Tyler and I agreed we would focus this video on SoFi's merits as a bank specifically, but I'll do a video focused on the tech platform soon. On the loan portfolio, you make some valid points, but I would also need to discuss the charge-off data, which is significantly higher than it "should" be.
Thanks for your reply. Agreed on the charge offs - I just meant that their book has a number of things that factor into the risk profile. Thanks for the video- always enjoy your content.
auto loans?
I jumped in and set it straight :) Although I'd love to see SoFi get into auto lending at some point. Just as high-margin as personal loans but backed by an asset.
I was thinking the same thing. Not very far into the video he talked about auto lines 3 times and I don't remember a correction? Shows yah how much he studied the company.
Short answer: No.
your argument ??