SOFI thoughts
What are everyone's honest thoughts on sofi? It seems like Sofi itself is doing well as a business with the competitive interest rates on the savings accounts. So why has it been trading so low over the past couple week?
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MingtongToh : Qatar sales and shorts took the chance to push the price down. But Noto has been buying and the business seems to be growing. Guidance is also conservative. Sofi management also explains that their guidance does not include further product expansions yet. Plus they are alr GAP EPS positive for 2 quarters. They just need to keep up for 2 more. They are same as palantir 2 years ago when they are at $4. Of cos Palantir also boosted by a boom in demand for AI. But I think at least 9-16 dollars not very far fetch for Sofi.
And rates will properly come down soon. Will see how the fed manage the rates but if it gets lower I should buy more as long as nothing fundamentally changed for the company. Cos if the stars align this stop can recover 30% or more in a few days.
But that’s just my own personal opinion. I could be wrong.
SamQQQ : from what I know it’s the Qatar fund fully dumped all their SOFI stock, and approximately 70% of the revenue was from the personal loan which it may has the possibility of unable to get the money back
MingtongToh : In like 2023 September period, the stock was trading around this price rising to break pass 7 dollars when inflation data cools. Then it drops back to 7 yish when the company exits Cypto and pass it to coinbase. But it steadily goes back up to 7.60 yish afterwards. When the dot plot shows rate cut in 2024 the stock went from around 7.60 to like 10+..
Afterwards it cooled down to 9 after December and held steady at 8-9 dollars. But after all the hype of cutting rates die down in Jan-March, the stock slowly dropped back to 7 dollars. Most of the analysts and banks at that time find 9 dollars to be too expensive and waiting for an entry at lower prices. Then Sofi posted positive EPS growth and stock shot back up again to 9 dollars. But failed to hold guess to many shorties plus people rather take profit at 9 dollars.
But then eventually the issuing of convertible note plus the sales from 4th largest investor sent the stock to the current level.
I guess this stock really needs a cut in interest rate + few more positive GAP EPS + need some banks and analyst to start showing love to the stock. At the same time, Noto keeps buying under 7 dollars. Which kinda give us some level of confidence.