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I am an investor in SoFi, and it is actually one of my biggest holdings right now. Not only am I an investor in SoFi, but I am also a customer of SoFi for multiple of their services. I also do a lot of advertising for SoFi as a lot of my articles have referral links for SoFi in them. (download the investing app SoFi through our link and get $25 for free when you invest $10.
Download here - https://www.sofi.com/invite/invest?gcp=3cf3452a-7a65-41c8-b2d4-dc3752d20d92&isAliasGcp=false) My point is that I really like SoFi.
SoFi is an all in one finance platform. They're an investing app, credit card app, banking app, loan provider app, and more. They currently have a market cap of around $3.6 billion, and the stock is down around 70% since the beginning of the year. In this article, I will make the case that SoFi is worth more than they are currently trading at, but first, I want to talk about why this year has been so hard on them. First off, a stock being down in value this year is not unique to SoFi. This year has been a down year for the market as a whole. SoFi has been hit pretty hard, but most stocks are down this year. One thing that has been going on this year is unknowingness with student loans. SoFi makes part of its money by refinancing student loans. With student loan payments being pushed back, that hurt SoFi's stock. In my opinion, it shouldn't have been that much of a factor with the fact that SoFi's other revenue producers are experiencing massive growth, but it did hurt the stock. Then, with partial student loan forgiveness being announced, that hurt SoFi stock a lot as well. Now, partial student loan forgiveness has been blocked but no one really knows what is going to happen with that and the unknowingness is hurting the stock.
As SoFi stock has been falling based off of this news, I have just been buying more shares of the company. This is a company I want to own as much of as possible, so when the stock falls on news that I don't actually think matters that much, I just buy more. I think SoFi is worth more than the $3.6 billion that they are currently trading at, so I am fine buying this stock at a discount.
SoFi is not yet profitable as they are a growth stock that is investing their money in growing very quickly. In the first quarter of 2022, SoFi recorded adjusted net revenue of $322 million up 49% year over year. In 2021, SoFi brought in a total of $977.3 million. In 2020, they brought in $565.53 million, and in 2019, they brought in $442.66 million. One can easily see that SoFi is growing at a very impressive rate. SoFi has grown a lot in 2022 as well. They haven't released their quarter 4 report yet, but they have already brought in over a billion dollars in revenue for the year so far.
With SoFi's high growth in mind, the stock continues to look very appealing for me as an investor. I will personally be continuing to buy shares of this company.
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