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So who is still in SoFi? (IPOE finally finished SPAC status and now trades as "SOFI")

They had a nice dip on Friday.
Was down to around $18.50

This still means 85% higher than from $10 SPAC floor, but down off highs.
Apparently some lockup pressure perhaps.

So a buying opportunity?

This SA article is pretty good/long, but is more about the story/thesis than a metrics deep-dive.
Covers the strong background of the CEO, the major business lines; loans, financial services (trading), digital banking (in progress). Mentions competitors are more like Square and companies that add services in the future, like perhaps Robinhood. Galileo is part of their technology arm, and is intriguing but a bit unclear to was a major purchase and they are a backend for digital banking. So does that mean there is a B2C aspect to SOFI and a B2B aspect?

"Enter Galileo, the backend, regulatory and technology side. Galileo offers these companies digital banking and payment services integration with their consumer-facing products. It maintains a ledger, authorization settlement, ACH, funds movements and fraud management, credit card issuance; everything needed to build a bank in a digital capacity. And these product companies are happy to outsource the backend to Galileo, who focuses only on that. In July of 2020, CEO of Galileo Clay Wilkes said 95% of digital banking in North America is run on Galileo, and 70 of the top 100 fintech businesses in the world are clients, such as Robinhood, Chime,, Monzo, Moneylion, Transferwise, Klar…the list goes on."

While very bullish, the author did throw out some "what could go wrong" scenarios, and one is that the Q1 influx of users from stimulus checks and disatisfaction with Robinhood over the GME issues, may be the peak, and that type of user growth won't be sustained.

"Amazingly, SoFi added 430k members to its platform in Q1, or 23% growth quarter over quarter from a base of 1.85 million. This is an astounding number, and represents the seventh consecutive quarter of accelerating year over year growth. As much as I like SoFi, this will be the last quarter of such growth.

Q1 2021 was not a normal quarter. It included several massive tailwinds for SoFi, including stimulus check disbursement and the well-publicized meltdown of the largest fintech equity trading platform, Robinhood (RBNHD). As trading of GameStop (NYSE:GME) and meme stocks like AMC (NYSE:AMC) were halted and clients became disillusioned with Robinhood, these same clients began to flock to alternative trading platforms, such as Square's CashApp (NYSE:SQ), Coinbase (NASDAQ:COIN) and SoFi. Accordingly, each of these three companies posted banner first quarters, which I believe represents a pull forward of growth rather than a new growth slope."

All in all, I was fairly impressed, and wish I took a longer look when they dipped during the drawdowns to around $15.

"Importantly, SoFi also reaffirmed FY2021 guidance of $980 million, or 58% year over year and adjusted EBITDA of $27 million. I believe these projections are achievable and represent some of the highest growth rates in the industry."

Optimistic view of future valuation
"Given SoFi's industry-leading growth rates it is reasonable to assume SoFi is granted a PE between Square and PayPal's ranges of 70 - 250. Where SoFi's PE actually settles dramatically impacts its market capitalization and therefore, its stock price. Within that range SoFi could sport a market cap of anywhere from $63 - 225 Billion in 2025. This is where math gets messy and the economists begin to fidget, but the take home message and what I firmly believe is that if you are long SoFi, Anthony Noto and his team will repay your trust with a multi-bagger."

Thoughts on SOFI? I think if we assume all stocks/peers are overvalued, SOFI doesn't appear too overpriced compared to some industry peers. A drawdown could squash them further, but they also seem to have a good future.

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