Initial purchase of 700 shares @ $8.50 through CSP, January 2024
Added 800 shares @ $7.09, April 29, 2024
Thesis has remained for both purchases, lots of things to potentially look forward to.
Writing this as of Q1 2024 for the company, April 29, 2024
Why SoFi?
Lots of good things to say. First thing, Wall Street and shorts hate the stock, but yet the company keeps showing growth and reasons to want to be involved. The company has shown time and time again that their growth potential is beginning to be realized, and the business is legitimate and here for the long haul. SoFi reported a tremendous quarter with great numbers and factors of growth…
Which I’ll link here: (reference at this time is the Q1 2024 presentation)
On top of great prospects of fiscal and numerical growth, the brand is spreading. SoFi stadium is huge, SoFi NBA play-ins, SoFi pairing with golf pros, and more to come. The SoFi brand is catering to a younger audience, which include savers, borrowers, stock traders, and more. Whether it's refinancing your student loans, or buying a stock, they have the one stop shop that a bank needs. It seems like a nice, fresh way to deal with finance. I have tried multiple products and services of the business, and it seems to be great as of now.
Irrationality?
Why is the stock so heavily shorted? Why is the share price plunging 10% on great guidance and results from the quarter? Maybe investors are being irrational in valuing SoFi as a business? I say maybe because just because I may think so does not mean that is the case, however I think this company is worth more than 7.44B. Also, why is CEO, Anthony Noto buying shares whenever he sees fit, and still has not sold a single one?
Fair enough, his cost basis is relatively low compared to the average SoFi position most likely, my own currently sitting at $7.75 per share as of April 29, 2024. But why is he not selling? Must mean he has some sort of vision for the business in the long term. He could have sold when the stock was reaching over $9.50 per share, or even when it jumped to $11, but he’s holding. Not that this in itself is a showing of why SoFi is undervalued, but perhaps just another good observation to ground the thesis of a long term growth story for the company along with my position.
Please don't be shy to bring your ideas or disagree with mine, always good to hear from others. All the best!
