SOFI - SoFi Technologies: Strong Growth Should Be Rewarded Eventually

2024-04-22 10:41:54 ET

Summary

• SoFi Technologies' shares have dropped 24.1% since late December, underperforming the S&P 500.
• The company continues to show robust growth, with net revenue increasing by 34.7% in the final quarter of the year.
• Management forecasts profitability for 2024, with net profits expected to be between $95 million and $105 million.
• For long-term investors, recent pain is undesirable, but the bigger picture remains healthy.

Unfortunately, many investments that we make don't go up immediately. Some require patience. Sometimes, it can take months or even a year or two for an opportunity to really start to play out. In the short term, this can be rather painful. As an example, we need only look at SoFi Technologies, Inc. ( SOFI ). Back in late December of last year, I wrote a bullish article about the company. I found myself impressed with the continued growth of the enterprise. I acknowledged at the time that the firm was having difficulty in generating profits. However, cash flows were improving and there was no sign that growth was about to ease up. This led me to rate the company a 'buy' to reflect my view at the time that shares would likely outperform the broader market moving forward....

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