SOFI - SoFi: Optimal Entry Point

2024-02-08 09:30:00 ET

Summary

• SoFi showed resilience and adaptability in navigating challenges such as Fed rate hikes and high inflation in 2023.
• SoFi's customer base grew to 7.5 million and the company reached GAAP profitability in Q4'23.
• SoFi's management expects strong growth in 2024, focusing on tech and financial services segments, with adjusted net revenue of $550-$560 million and adjusted EBITDA of $110-$120 million.
• The soft 2024 guidance is setting SOFI up for another earnings beat, and the recent pullback provides another entry point.

Investment Thesis

SoFi Technologies Inc. (SOFI) continued to produce impressive numbers amid challenges, displaying resilience and optionality. During 2023, there were multiple challenges that SoFi had to navigate, including Fed rate hikes, high inflation, which softened in the second half of 2023, and the federal student loan moratorium, which slowed student loan refinancing businesses in the industry....

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