IB Net Payout Yields Model

SoFi: Far More Profitable Than You Think

  • This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More » 

Update - Jan. 20 

SoFi has started the year in a very bullish manner. The stock has reclaimed $5 and all of the key moving averages are starting to turn upwards. Not to mention, all of the recent insider purchases by CEO Noto are now in the money. 

Finviz Chart

Update - January 9

SoFi has made a nice bounce back to $5 today. This level was previous support for the fintech and could quickly signal a breakout once the stock reclaims the levels. 

Finviz Chart

Original article published on Jan. 4

  • SoFi is constantly dumped on for not being profitable, yet the company is very profitable when excluding non-cash charges.
  • The fintech should be valued based on adjusted EBITDA due to the metric approximating adjusted profits.
  • The stock trades at 15x '23 EBITDA targets for a business set to double and triple EBITDA in a short period.
The recent volatile market has whipsawed investors to the point of making irrational decisions on the accurate financial metric to utilize to value a stock. SoFi Technologies (NASDAQ:SOFI) is a prime example of a fast

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 


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