📈🚀 Opportunity or failure? Shares of fintech company SoFi Technologies.

SoFi Technologies $SOFI is an innovative fintech firm that focuses on providing a wide range of financial services, including loans, investments, banking and insurance.

CEO Anthony Noto bought back shares three times in May.

A price below $7 represents an interesting investment opportunity.

Although SoFi stock has fallen since the beginning of the year 30 %the company has become profitable and has beaten market expectations twice.

In addition, the company completed a convertible bond offering worth $750 millionto strengthen its balance sheet and repurchase higher-coupon preferred stock.

$6.32 $0.00 +0.00%

Members are the backbone of SoFi and their numbers continue to grow! 📊

Four years ago, the company had just over a million members; today it has more than 8 million. That's an incredible growth rate 65% CAGR. People are flocking to SoFi and revenue is growing proportionately.

Over the past twelve months, revenue has reached nearly five times 2019's revenue , which is a staggering 39% growth.

The high-margin financial services area is growing faster than lower-margin credit products, which means the company will be translating more gross profits into net income. 🚀

The ratio of financial services to credit products improved from 4.1 times in 2022 to nearly 6 times in 2024. Fintech services now make up 42 % of all revenues, contributing to further margin improvement.

SoFi's total deposits grew year-on-year by 16 % to $21.6 billion, significantly boosting lending. Obtaining a banking license has enabled us to operate more efficiently than our private lender competitors, as seen in our net interest margin, which increased to 5,91 % in Q12024 from 4,38 % in Q12022.

Institutions are noting strong fundamentals and potential. There was a significant increase in institutional ownership in May and the CEO Anthony Noto purchased shares in the month for $600,000. 📈

Management expects earnings per share of$0.08 to $0.09for fiscal year 2024 and anticipates 26% revenue growth through 2026 and 20% revenue growth thereafter. The company is expected to achieve earnings per share of$0.60-0.80 in 2026, which at a P/E of 20 values the stock in the range of$12-14. 💡

$6.32 $0.00 +0.00%
Target Price
9.8 (+55.06% Upside)

What's your take on this company?

For me, a great company that is innovative. However, more than $SOFI, I was impressed by $SQ+0.4%.

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