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.
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.
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.