IPOE - Is SoFi the Growth Stock for You?
The online lender SoFi, which will soon go public through Chamath Palihapitiya's blank-check company Social Capital Hedosophia Holdings Corp. V (NYSE: IPOE) , has some pretty ambitious growth plans. The company has an $8.7 billion valuation and is projecting to grow its membership and revenue at a pretty rapid rate. Does this make SoFi the growth stock for you? Let's investigate.
SoFi offers a wide array of financial products including home mortgages, student loans, personal loans, and credit cards. The company also has an online brokerage and cash management offering. Last year, SoFi purchased the fintech Galileo, a platform that helps other fintechs carry out front- and back-end functions such as account setup, account funding, and direct deposit, among other functions.
The whole idea with all of these products is for SoFi to create a "financial services productivity loop," where customers that come to the company for one product end up using SoFi for their other financial needs. The more products that a customer purchases from SoFi, the more profitable the company becomes, because there is less spend required on customer acquisition. For example, a customer that signs up for SoFi Money's cash management product and then a personal loan becomes much more profitable than with just either one, or if two different people had signed up for only one of those products.
For further details see:
Is SoFi the Growth Stock for You?