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I have been buying shares of SoFi for a while now, and it is one of my biggest holdings in my portfolio. I bought most of my SoFi shares when it was trading at around $5 a share. The stock has been on quite an amazing run lately though as they make a lot of their money through student loan refinancing, and student loans are unpausing soon. Over the last month, however, SoFi has fallen back down by around 10%. Is the stock at a buying opportunity??
SoFi is an all-in-one finance app. They do loans, banking, investing, credit cards, and more. Their banking division has gotten a lot of their attention lately as they offer banking without having physical locations. This is attractive to investors because it keeps the costs of banking way down. Earlier this year, bank stocks massively took a hit after Silicon Valley Bank collapsed, and SoFi was no exception. That's when I seriously cranked up my buying of SoFi as the market was being irrational. SoFi currently sits at an $8 billion valuation. The company is not profitable, and it currently trades 4.12 times their sales. This might sound like a lot, and it definitely is, but SoFi is growing insanely quickly in both revenue and users. While SoFi is trading at quite a premium, long-term I believe it's a good company. My opinion is that right now, SoFi is a little overvalued. I could see the stock falling more in the short-term, but I think that long-term, SoFi shareholders will be very happy. Want to read more articles on the stock market? Of course you do! Join our email list at cwt.finance.blog
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Small cap stocks (stocks whose entire market cap is less than $2 billion) can offer unique opportunities for wealth creation. They are far riskier, but they can be very beneficial. Large cap stocks and especially funds that hold large cap stocks represent a great way to build wealth over a long period of time in a relatively safe manner. They are smart investments, but I believe exposure to small cap stocks can be very beneficial as well.
The main reason for this is return on investment opportunity. Apple has a market cap of around $3 trillion. If I put $1,000 into Apple stock, the company would have to become worth $30 trillion for me to 10x my money. I'm not saying Apple won't one day be worth $30 trillion but the chances are not great at all. Especially since the entire U.S. stock market is worth around $46 trillion. On the other hand, a company worth $2 billion becoming a company worth $20 billion happens all the time and is not that farfetched. 10xing one's investment in a $2 billion company is a lot more feasible. Now, investing into small cap stocks is a lot riskier. There's a much higher percent chance of these companies going bankrupt. Large cap stocks are usually a much safer investment to make. Most finance professionals claim that most people should simply buy an S&P 500 index fund which invests into the 500 largest companies in the U.S. and that should be the only investing that they do. Most active investors do lose to this strategy. That said, small cap stocks can lead to impressive growth. When I am looking at small cap stocks, I try to find ones that have very impressive growth, are trading at a reasonable valuation, and have great leadership. I find it hard to find stocks that fit all three of those categories, but when I do, I buy. Follow @financebycwt on all social platforms to never miss an article. Download the investing app SoFi and get $25 of your favorite stock Invest Referral Program | You’ve been invited to use SoFi Invest! Become a member of Finance by CWT - patreon.com/financebycwt
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Afya Limited (Ticker: AFYA) operates as a medical education group in Brazil. They offer medical schools, graduate courses, and more educational programs. They also have branched out into digital services. They launched a subscription-based mobile app and website portal that helps medical professionals. This is just a few of the medical products and services that this company owns. They currently trade at a market cap of around $1.46 billion.
At time of writing, Afya currently trades at $15.60 a share. They currently trade at a p/e ratio (share price divided by earnings per share) of around 16.96. Afya is a fast-growing company historically. Last year, the company did $2.33 billion in revenue and $373.57 million in earnings. The year before that they did $1.72 billion in revenue and $223.33 million in earnings. A company growing as quickly as Afya is with a p/e ratio of 16.96 is, in my opinion, very reasonable. Looking at the company's current balance sheet, one will find that the company currently has $722.69 million. They $8.04 in cash for every share that they have. The company is in debt. They have $2.85 billion in total debt giving them a current ratio of 1.08. A current ratio measures current assets/current liabilities, and it can be a good way to see how easily a company can pay off its debts. A good current ratio would be 1.5-3, but I am not too worried about this company because I believe that that will get better in time. Overall, I think this is a strong company. Yahoo Finance currently has the stock as undervalued, and I believe that it is undervalued as well. Many analysts have this stock listed as a buy. Stock research company Zacks even has them as a strong buy. In my opinion, the stock has a lot of indicators that this is a good company to hold for the long-term. We publish tons of content on the stock market so follow (@financebycwt) on all social platforms to keep up with our articles. Like us on Facebook at www.facebook.com/financebycwt
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I've never really invested for dividends. I've always been more concerned with share price. I'd rather see shares that I own go up in value than receive a dividend. There are a few different reasons for this. One, dividends are taxed as income, and unrealized share growth is not taxed. Second, if a company profits $30 million, it is a company with $30 million dollars. If I own 5% of that company, I own 5% of a company with $30 million dollars now in its bank account. My shares are tied to that. If the company distributes that $30 million to shareholders, then the company I own has $30 million less on their balance sheet and the company is worth less than before. That has always been my thought process on dividends.
Recently, however, an investor friend of mine that I respect told me I should buy a dividend ETF from Schwab called SCHD. I've written about SCHD before. I've always known of its existence, but I never really considered investing into it. However, my investor friend told me that the fund has outperformed the S&P 500 over the last 10 years. After verifying that that was true (taking into account dividends), although slightly, the fund became more interesting. Now, just because SCHD outperformed the S&P over the last 10 years, does not mean that it will outperform the S&P over the next 10 years. It definitely does not mean that it will outperform the S&P over the next 40 years. Past performance does not necessarily equal future performance. That said, I decided to make SCHD a small amount of my Roth IRA. The reason I bought this fund under my Roth IRA is so that I would not have to pay taxes on my dividends. Now, the only thing that I plan on doing with the dividends that I earn from SCHD is buying more shares of SCHD. SCHD is currently a very small part of my Roth IRA. That might change in the future. I think that this is a good strategy, but it is worth noting that one cannot take their gains out of their Roth IRA until they are 59 1/2 years old. I do not plan to touch my Roth IRA at all until I am 59 1/2, and I plan to reinvest all of my dividends into more stocks held in my Roth IRA. Join The CWT Stock Club to receive content all about investing. I write about my investing strategies, market thoughts, and more. Join now for just $5 a month at patreon.com/financebycwt. Check out our page of financial tools to help one invest in the market and more at Investing Apps - Finance by CWT - FINANCE BY CWT Follow us on social media down below!
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SoFi is my single largest investment that is not an ETF (exchange traded fund). The stock has performed absolutely amazingly this year increasing 114% in 2023 so far. The company had an amazing 1st quarter this year, and they recently released their second quarter earnings report which was really good as well. Here's the numbers:
SoFi reported $498 million in revenue in Q2 of this year Last year in Q2, they reported $363 million in revenue. This is very large year-over-year growth. Their banking segment is doing really well. They saw total deposit growth of $2.7 billion. They also added on new users during this quarter. They added 584,000 new users which is a 44% year-over-year increase. They now have a total of 6.2 million users. As an investor, this is what I personally care about the most. The fact that they are increasing users at such a rapid speed is really amazing. SoFi, as expected, did not turn a profit in this quarter. They are expecting to turn a profit for the first time as a public company in Q4 of this year. I don't really care that they aren't profitable yet as they are experiencing such high growth that I like that they are reinvesting so much into the business. I'm very happy with this earnings report from SoFi. Their share price is extremely up this year so far which is mostly due to student loans unpausing as they make money from refinancing student loans. I didn't think the stock should have gone up by as much as it did just because of student loans unpausing just as I didn't think that the stock should have fallen by as much as it did last year due to student loans, but I plan to hold this stock for quite some time. Join The CWT Stock Club to receive content all about investing, portfolio building, stock evaluations, and more for just $5 a month - patreon.com/financebycwt Also check out our finance tool page for recommended financial products to help one build wealth - Investing Apps - Finance by CWT - FINANCE BY CWT Follow us on social media down below!
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Last year, I announced that I was buying shares of Warner Brothers Discovery (Ticker: WBD). I did this because I concluded that they were trading at a valuation of less than what I believed that their assets were worth. I looked at the companies and intellectual property that they owned, and I concluded that they were worth more than the $35 billion they were, at that time, trading at.
Almost all of my investments have been doing really well this year. Warner Brothers Discovery, however, has not. They haven't done terribly. I'm only slightly down on my investment right now, but my WBD shares are not in the positive. WBD now trades at a $31 billion dollar valuation. WBD has lost a lot of money lately with certain media projects. The Flash, for instance, lost them an estimated $200 million dollars. Last year, the company created $33.82 billion in revenue but ended up losing $7.37 billion. As one can see from this, the company has a lot of struggles ahead of them. I do think that there is a lot to be bullish on with this company. They have a lot of valuable intellectual property that I think can be used to create a ton of cash (if used correctly). I think that their streaming service Max has the most growth potential out of all the streaming services. Max is actually one of the main reasons I bought the stock in the first place. I see so much potential for that platform. I still believe in this stock, and I could see myself buying more shares of this company. I think it is going to be a tough road ahead for them, and I don't expect to make much of a return on this stock for the next few years. I do, however, think that this is a good long-term investment to make. Join The CWT Stock Club! - patreon.com/financebycwt People ask me all the time, "What stocks should I invest in?". I can't tell people what they should buy, but what I can do is tell people what stocks I personally believe are a good buy and believe are worth researching. One should not take the stocks in this club as advice on what to buy but more as what stocks I believe people should research to decide for themselves if they should buy or not.
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Carvana Stock is Up Around 1,000%!7/20/2023 
At the beginning of the year, I added Carvana to my watchlist to remind myself to study the stock. Since then, the stock has gone up around 1,000%! Obviously, I wish I would have bought this stock before that happened. With this huge jump in share price, I want to look at the company's financials now and see if the stock is now overvalued and why this jump in share price occurred to begin with.
First, Carvana now trades at a market cap of $8.86 billion. They are not profitable. In 2022, Carvana brought in $13.6 billion but lost $1.59 billion. In 2021, They brought in $12.81 billion but lost $135 million. In 2020, they brought in $5.59 billion but lost $171 million. I don't expect Carvana to be profitable as they are supposed to be a growth stock, but I do find it interesting that no matter how much they increase their revenue, they don't seem to be any closer to being profitable. While researching this company, I read a ton of articles that stated that Carvana's new valuation was absolutely ridiculous. I agree that I think Carvana is trading too high, but I don't think their valuation is as crazy as people are saying. The company trades less than last year's revenue which for a high growth company doesn't automatically mean that it's not trading too high but it's not that insane either. That being said, I definitely would not buy this stock right now. Now, why is this stock trading so high. Well, there are two main reaons. One, Carvana recently had a really good earnings call. While they are still losing money, they are losing less than analysts thought that they would be. Carvana also struck a debt restructuring bill that reduced their debt by $1.2 billion. These two things caused a surge in share price. If you liked this article, check out our services page to see all that we do!
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BlackRock is one of my favorite stocks in my portfolio. I believe that they are the most important company in the world. They own the ishares ETFs which represents a huge part of most people's 401ks. They are the largest asset manager in existence. This stock has performed very well for me, and I am definitely planning to buy more shares of the company.
BlackRock recently released their quarterly report for the second quarter of 2023. In this report, they revealed that they earned $9.28 per share which is much higher than the $8.46 a share they were expected to bring in. This surprise in profit comes from their private equity investments doing better than expected. They did underperform in inflows into their funds though. They brought in $80 billion in inflows in the second quarter of 2023. While $80 billion is a lot of money, it is far less than the $100 billion many analysts were expecting them to bring in. While I would have liked them to have brought in more money, I am not very concerned that they underperformed here. There's a lot of economic uncertainty at the moment, and it makes sense to me that inflows would have been slightly down. The $80 billion they brought in brought their total assets under management to $9.4 trillion. Overall, I am pretty happy with this report. They're not expecting much growth this year which I hope will allow me to accumulate more shares before they get expensive. Join The CWT Money Club to get access to all my writings on budgeting, personal finance, and money management. Join at www.patreon.com/financebycwt I made a list of the financial tools that I use. Check it out here - Investing Apps - Finance by CWT - FINANCE BY CWT and see if one will help you! Follow Finance by CWT down below!
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Is Sleep Number Stock a Buy?7/11/2023 
Almost everyone is familiar with the company Sleep Number. We've all seen their ads and their stores, and it turns out a lot of people are buying from them. When I began researching this company, there were many factors of their financials that surprised me, but I was very surprised by the fact that the company is as profitable as it is. Let's look at the numbers.
Sleep Number currently trades at a $660 million valuation at time of writing. They currently are trading at around 13.6 times their earnings. In 2022, Sleep Number brought in $2.18 billion in revenue and profited $153.75 million off of that. In 2021, they brought in $1.86 billion and profited $139.19 million. This is impressive growth that the company is experiencing. The company does not offer a dividend even with its profitability. This makes sense though as the company does have debt. Sleep Number is currently up around 47% so far over the last month, and they are up a total of around 15.3% year to date so far. Over the last year, they are still down 7.8%. While some market analysts fear how a premium brand like Sleep Number will fare in this current economy, I personally feel like Sleep Number is currently trading at a really reasonable valuation. Obviously, it would have been better to buy this stock a month ago, but I don't think it's a bad buy right now with a longterm strategy in mind. Sleep Number was once valued at $151.44 a share. It's currently trading at around $30 a share. I don't think Sleep Number is going to get back to $151.44 a share anytime soon at all, but at $30 a share I think the stock looks very cheap right now. Join The CWT Money Club to get access to all my writings on budgeting, money management, and personal finance. Join the club here - patreon.com/financebycwt Follow Finance by CWT on social media down below!
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Meta recently launched a new app through Instagram called Threads. Threads is a text based social network created to rival Twitter. This app has been rumored for awhile now, and with Twitter looking especially weak lately, Threads was able to be launched at essentially the perfect time. While many people thought threads would be successful, I don't think anyone could have predicted how successful its launch actually was.
Here's some numbers for you. In the first four hours of Threads launch, it got 5 million sign ups. In the first 7 hours, it got 10 million. In the first day, it got 30 million sign ups. Now, threads is right at 100 million users. That is absolutely insane. Twitter currently has around 400 million users, but it'd be hard to believe that Threads won't be there soon. As a shareholder of Meta, what I really care about with Threads is will it make my shares go up in value. The answer to this question, so far, is yes. When threads first came out, Meta's stock did go up. What I really want to know though is will this create long-term share growth for Meta. I believe that the answer to this is yes as well. While threads does not currently have ads on the platform, ads are obviously going to be there soon enough. This gives Meta another stream of revenue. How large this revenue stream will be depends on how large they are able to grow the platform, but I do believe that threads will be profitable for Meta. One thing that I have seen shareholders worry about is that people's time on Instagram will end up decreasing because they will start spending some of that time on threads now. While that could be true, it also could end up being the opposite. It could be that this leads to people spending more time on Meta's platforms. Instead of people being on Instagram and then leaving to go on Twitter, they will leave to go on Threads. Instead of taking away from the time people spend on Instagram, they will be spending the same time on Instagram but just using Twitter less or not at all. As a shareholder of Meta, I believe that the most important thing about Threads' launch is that it shows that Meta can still build more things very quickly. It shows the innovation at Meta. Last year, a lot of the employees were severely unmotivated, and I think that the launch of Threads is really important for that. Follow us on social media down below (We're making a Threads soon) so that you never miss an article. Also, join The CWT Money Club to get all of our writings on budgeting, personal finance, and money management for just $5 - www.patreon.com/financebycwt |
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