SOFI - SoFi Technologies: A Rare Buying Opportunity

2024-06-26 06:59:05 ET

Summary

• The stock has rarely dipped this low over the past several months, and the last time SOFI fell below $7 per share, there was a massive rally towards the $10.
• Recent developments show that the company's fundamentals keep improving as it continues demonstrating strong revenue growth and profitability expansion.
• The market highly likely underestimates SOFI's revenue growth potential as consensus revenue growth estimates are notably lower than the management's expected 25% revenue CAGR over the next three years.
• My valuation analysis suggests that SOFI is deeply undervalued.

Investment thesis

My previous bullish thesis about SoFi Technologies ( SOFI ) did not age well as the stock slid by 12.5% since early March. This was a much weaker performance compared to the broader U.S. stock market....

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