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SoFi is having a rough 2022 so far like essentially all stocks are, but I remain very bullish on this stock long-term. I think this stock has so much potential over the next few decades that I have been buying up this stock as much as possible for quite awhile now and I don't plan to slow down on that. There are a lot of reasons that I love this stock and in this article, I will be listing several of those reasons.
SoFi is an amazing app for stock investing. They have one of the greatest user interfaces out there, and they are perfect for people who are wanting to start investing. I see this becoming the dominant investing app for college aged people. This is a huge benefit for a company like SoFi because college aged people might download SoFi for investing, but they will likely end up using SoFi for a whole lot more. College aged people know they need to built their credit so maybe they'll get the SoFi credit card. They'll likely also be graduating with student loans so maybe they'll refinance them with SoFi. They'll realize that SoFi's banking provides better interest then theirs so maybe they'll switch to banking with SoFi. This is the genius with SoFi: cross-selling.
I, personally, downloaded SoFi because I liked their investment platform, and now, I use the platform for quite a bit. This made me a huge fan of the stock itself because it is much easier to sell an existing customer something then sell a new customer something. That is the genius of SoFi.
I also think that SoFi is pretty genius in their marketing. They sponsor the popular business show "Best Business Show with Anthony Pompliano" which I thought was genius because it markets their services to the right demographic. I also thought buying the rams stadium was genius because it puts their name out there so well. I think that the people running this company are doing a really good job getting people familiar with the product.
My bull case with SoFi is that they become THE service for young traders and manage to cross sell their customers on many of their services which would make them the dominant player in financial services. I think they could become the most popular credit card with young people. I think they could become one of the biggest banks in the world because of their interest rate. I think they could become a dominant player in investing. I also think people in student loan debt will continue refinancing with them.
The stock does have some issues though that I want to point out. While it is doing an excellent job cross selling people, it's spending a lot of money to do it. SoFi gives me so many reward points for using the app and that's costing SoFi money every time they do it. I use all of my reward points on SoFi stock which means that SoFi has essentially bought me a lot of their shares. While this makes me love using the app, it is definitely costly on their side. SoFi is not profitable which is normal for a growth stock like SoFi but that should be remembered.
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