Hey guys, it’s your favorite financial Youtuber, and I’ve got some exciting news to share with you! The stock of SoFi Technologies (SOFI -0.40%) just skyrocketed 26% last week according to S&P Global Market Intelligence. Investors are going wild over the growth and profitability of this online personal finance company. With high-yield savings accounts that offer rates up to 3.75%, it’s no wonder SoFi’s customer base is expanding. And the best part? SoFi narrowed its overall net losses by 34% last year and CEO Anthony Noto has stated that the company is on track to become profitable in the fourth quarter of 2023.
Analyst John Hecht from Jefferies Financial Group is bullish on SoFi’s stock, predicting it to rise 7% to $8 per share. He cites SoFi’s 46% increase in deposits in Q4, driven by its attractive interest rates, as the reason for his optimism. But that’s not all, MoffettNathanson analyst Eugene Simuni is even more bullish on SoFi’s shares. He believes SoFi is set to become a leader in the digital banking industry and sees its share price rising 34% to $10.
SoFi is making waves in the financial industry with its diversified digital finance products and its GAAP profitability is on the horizon. The company’s improving net income margin, which decreased to 16% in Q4 2022 compared to 27.5% in the same period the previous year, is just one of the reasons why this stock deserves attention. And with management expecting this figure to decrease into the single digits in the long run, the future is looking bright for SoFi.
The company’s payment processing platform, Galileo, and its cloud-based banking platform, Technisys, are just two of the reasons why SoFi is poised for success. Galileo announced 11 new clients in Q4, nine of which had existing customer bases, showing that SoFi is making inroads with both young ”neobanks” and established banking partners.
SoFi is guiding for 25-30% sales growth in 2023, despite challenging conditions in the student and mortgage loan markets. And with its share price trading at a price-to-sales ratio of 4.1, it’s a reasonably priced investment opportunity for enterprising investors.
In conclusion, SoFi’s impressive customer growth, progress toward profitability, and diversified financial tech offerings make it a stock worth considering. So, what are you waiting for? Get in on the SoFi Stock action now!
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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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