Hey guys, it’s your favorite financial YouTuber and today we’re talking about the exciting growth of SoFi stock! This online personal finance company has hit a major milestone with over 5.2 million members and a rapidly growing balance sheet of nearly $8 billion in personal loans, $4.6 billion in student loans, and a whopping $7.3 billion in deposits! Now, I know what you’re thinking – a loss of $43 million in the fourth quarter for their financial services division doesn’t sound great. But the management team has a bold plan to turn that around and get the division to be contribution profit positive by the end of 2023. Can they do it? Well, I have my doubts, but I’m always up for a good challenge! SoFi has an innovative business model that sets it apart from the competition. Instead of immediately selling the loans they originate, they hold onto them for about six months, collecting monthly interest payments and avoiding the need to set aside reserves for potential losses. And let me tell you, they’re serving a top-notch clientele with an average borrower FICO score of 747. Impressive, right? Now, let’s talk valuation. SoFi stock is currently trading at over 26 times its expected 2023 adjusted EBITDA and 246% of its tangible book value. That’s a bit steep for my taste, but the company is poised to achieve quarterly profitability by the end of the year and a majority of their revenue comes from the ever-growing Technology Platform segment. So, there’s potential for growth. And let’s not forget about the recent Fed chairman remarks on disinflation. The market took notice and SoFi stock jumped from $7 to nearly $8 on the day of the comments. The Fed’s recognition of the ”disinflationary process” has definitely sparked investor interest in this company. Overall, I’m excited about the future of SoFi and the potential for growth in this space. But, as always, do your own research and make informed decisions. And that’s a wrap for today guys!
#sofi #sofistock #sofitechnologies
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Disclosure: This video was done by myself, and it expresses my own opinions. This is not investment advice or financial advice and it should not be taken as investment advice or financial advice in any way shape or form. I am not receiving any form of compensation for this video from the company or organization that I am expressing opinions about. This video is for entertainment and or educational purposes only.
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