$SoFi Technologies Inc.(SOFI)$ Sofi Tech recently released its 2Q2021 results and I decided to do a quick writeup following my article on Sofi published a month or 1.5 months ago, during which I mentioned that there is no need to rush into this stock given my current portfolio allocation as well as the pricing on Sofi.
Price wise, it had hit around a recent low of 14.5 USD before finding ground to retest around 17.5 USD. However, the recent 2Q 2021 results see the price operating at around 10% down from yesterday close.
As a recap, above diagram gives one a quick idea of what Sofi is doing if one has not looked at my old article.
While quarterly revenue did grow significantly on year on year basis, quarter on quarter growth is not that impressive. Its member growth for Sofi membership is also growing around 10% per quarter, which is a decent number though not fantastic. What is worrying is its bread and butter business in lending products, which one can see that its product growth seem to have slowed since 2020. We will have to watch out for it.
For its recent acquisition of Galileo, its 2Q2021 revenue and profit was even lower than that of 1Q2021.
Whats good is the growth in financial services segment, which one can follow to see if it can provide a growth engine for it. Given its current loss making situation and yet to be improved payment technology platform and relatively small financial services platform, current market may still perceive Sofi as a lending platform and whether can it warrant a 13x price to sales would be a question to ask...
Long story short, there is simply no need for me to rush into Sofi. I will wait to see if Sofi can retrace to below 12 USD before looking. $Upstart Holdings, Inc.(UPST)$ Upstart... is an interesting company and stock, which I did not have the chance to acquire a position since it has moved up significantly after its 2Q2021 results.
As for the Asia markets today, news were reporting that Ningbo port closure may have caused some fear in the Chinese markets. Well who to blame except for the Delta variant. $小米集团-W(01810)$ Xiaomi price has also come down by close to 1 HKD during market trading today but in any way, I believe the US and European markets will not undergo another lockdown and thus purchases of Xiaomi products from these markets, including Latin America may help to bring the good sales of Xiaomi handsets in 2Q2021 into 3Q2021.
$阿里巴巴-SW(09988)$ $腾讯控股(00700)$ Again, there is no need to rush into Alibaba and Tencent positions given my current capital allocation.
As always, the above should not be construed as any investment or trading advice.
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