Where Is SoFi Stock Headed In 2022?_老虎社区_美港股上老虎

Where Is SoFi Stock Headed In 2022?

seekingalpha2021-12-24

Summary SoFi stock has been battered recently due to headwinds facing FinTech stocks in general. The company is still in the early innings of its market opportunities. But, it already expects to ...

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But, it already expects to ...\n\n<a href=\"https://seekingalpha.com/article/4476606-where-is-sofi-stock-headed-2022\">网页链接</a>\n\n</div>\n","source":"seekingalpha","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Where Is SoFi Stock Headed In 2022?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhere Is SoFi Stock Headed In 2022?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-12-24 16:08 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4476606-where-is-sofi-stock-headed-2022>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nSoFi stock has been battered recently due to headwinds facing FinTech stocks in general.\nThe company is still in the early innings of its market opportunities. But, it already expects to ...\n\n<a href=\"https://seekingalpha.com/article/4476606-where-is-sofi-stock-headed-2022\">网页链接</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SOFI","symbol_name":"SoFi Technologies Inc.","start_time":0,"source_url":"https://seekingalpha.com/article/4476606-where-is-sofi-stock-headed-2022","article_id":"1153187365","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1153187365","pubTimestamp":1640333284,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Summary\n\nSoFi stock has been battered recently due to headwinds facing FinTech stocks in general.\nTh","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"SOFI":"SoFi Technologies Inc."},"translate_title":"2022年索菲股票走向何方？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SOFI":0.9},"content_text":"Summary\n\nSoFi stock has been battered recently due to headwinds facing FinTech stocks in general.\nThe company is still in the early innings of its market opportunities. But, it already expects to report adjusted EBITDA profits for FY21.\nWe discuss where SoFi stock is heading as we move towards 2022.\nI do much more than just articles at Ultimate Growth Investing: Members get access to model portfolios, regular updates, a chat room, and more.\n\nInvestment Thesis\nSoFi Technologies, Inc. (SOFI) is an emerging leader among new FinTech players who are keen to disrupt the legacy players with their members-focused strategy. SoFi believes that legacy players don't focus on maximizing the lifetime value of their customers. Instead, they are focused on their short-term profit goals. However, SoFi endeavors to build its business model around its members, helping them achieve their goals. Therefore, the company has developed a vertically integrated platform that serves its members seamlessly. Consequently, SoFi has consistently reported strong product and members growth over time, validating its strategy. CEO Anthony Noto reminds us of SoFi's mission (edited):\n\n Not only do we want to have a lifetime relationship with our members, but we want to be there for every major financial decision they have in their lives as well as all the days in between. And in order to do that, we need to help them get their money right. It means we have to help them borrow better, save better, spend better, protect better, invest better. (5th Annual Virtual Wells Fargo TMT Summit Conference)\n\nSOFI stock has also been battered in the recent retracement. Therefore, the stock is now back to its key support level, despite reporting solid FQ3 results. Therefore, we believe that the stock could make its move higher as we head into 2022. In addition, we discuss whether it's apt for investors to add exposure now.\nReaders new to SoFi canrefer to our previous article as a primer.\nSOFI Stock YTD Performance\nSOFI stock YTD performance (as of 22 December'21).\nReaders can quickly glean that SOFI stock's price volatility is not for the faint-hearted. The stock has seen at least three sharp upward momentum spikes throughout the year that sent the stock's YTD gains to 100% in February. However, the stock's mean-reversion tendencies continue to weigh on its upward momentum. Therefore, investors who added the stock at the highs might have suffered steep losses as the stock retraced. Moreover, its relatively high short percent of float at just under 10%throughout the year could also have contributed to its high volatility. Nevertheless, the stock has managed to keep itself within sight of the broad market leaders with a YTD gain of 20.5%.\nStrong Focus On Members Drive Consistent Product Growth\nSoFi average products per member. Data source: Company filings\nSofi average products per member by segment. Data source: Company filings\nSoFi has clearly driven strong product adoption across its growing member base that reached 2.94M members in FQ3. It also added 377K members, which, according to SoFi, was its second-highest quarterly increase. Notably, its strong member-focused business model also drove its average products per member, which reached 1.45 in FQ3. We can also observe the strong growth in financial services products per member as seen above. Its highly profitable lending segment serves as its funnel to grow its still nascent financial services segment. It's a critical segment to drive engagement due to the core products involved, such as savings, investments, and spending-related products. Some readers may observe that the average lending products per member seem to be dropping. However, we think there's no cause for concern here as the company listed eight financial services products compared to just three lending products. Moreover, the lending products are also highly specific for meeting members' needs. For example, if you are not a student, you wouldn't be taking up a student loan. However, its financial services products are designed for all its members. Therefore, we should focus on the traction of its financial services segment to evaluate the strength of the adoption of its products.\nMoreover, the company strongly believes that its \"vertically-integrated\" technology platform is its key competitive advantage. It allows the company to deliver a seamless onboarding experience across various product lines for its customers. SoFi believes that its platform advantage will continue to help it extend the rapid adoption of its products across its growing member base. Noto articulated (edited):\n\nAt a macro level, we have better technology.We have the ability to use data because it's not siloed.\n We're vertically integrated. For many banks, their core banking technologies are still on-premise. In many cases, they're still siloed, and therefore, that silos the data and also real-time decisioning. You can't get to that ease of use and that functionality, if you have different data architectures and you have different core technologies. And so we definitely benefit from our technology approach and our data architecture. (5th Annual Virtual Wells Fargo TMT Summit Conference)\n\nStrong Lending And Tech Segment Give SoFi Time To Build Up Its Financial Services Segment\nSoFi FQ1-FQ3'21 adjusted revenue and adjusted contribution profit by segment. Data source: Company filings\nSoFi adjusted contribution margin by segment. Data source: Company filings\nSoFi has consistently telegraphed that it operates in a market with a massive TAM. The lending market easily extends into trillions of dollars. Therefore, the company believes that its lending opportunities are still in the early innings. Notably, it already operates a solidly profitable lending and technology segment, as we can observe above. Its lending segment continues to be its key revenue driver in 2021, and it has been growing rapidly. Notably, it's also highly profitable, as SoFi reported an adjusted contribution margin of 54.6% in FQ3'21. Its contribution margin has also remained consistent throughout the year, despite the headwinds faced in the student loans market. Therefore, we are confident that SoFi's diversified loans portfolio can sustain its lending segment. Importantly, it gives SoFi time and flexibility to expand its financial services segment that is still incurring significant losses. However, the company sees a \"500M FDIC accounts\" opportunity ready for disruption.\nSoFi adjusted EBITDA margins. Data source: Company filings\nThe company focuses on what it calls a \"higher-end demographic, with a household income of above $100K.\" Therefore, it targets higher-quality members that it believes can significantly contribute to its product adoptions and revenue growth. Moreover, the company believes that it's on track to hit its 10M members target by focusing on its \"best-in-class\" products. Noto emphasized (edited):\n\n \"\n I would be really disappointed if we didn't achieve our 5-year plan that we laid out and getting to 10 million membersat SoFi and obviously more products than that. We're challenging ourselves to build a best-in-class product across four big macros, fast, selection, content, and convenience. Now those are pretty common adjectives, and they may not sound differentiated. But within each one, there is a ton of differentiation.\"\n\nMoreover, we believe that the company is well-placed to build on its platform advantage in its fast-growing financial services segment. It can leverage its profitable lending segment despite incurring losses for now. Notably, the company has turned adjusted EBITDA profitable on a consolidated basis and is expected to maintain its profitability moving ahead.\nNevertheless, two key risks may continue to impinge on its stock momentum in the near term. However, these risks are not new, and we don't expect them to be significant structural issues. President Biden just extended the student loan payment pause until 1 May'22. The Omicron variant has thrown a spanner in the works. But, we believe it only pushes back the restart of the repayment but is unlikely to be totally canceled. There is more than $1.6T of student debt outstanding, and the ramifications could be devastating. Notwithstanding, it's still a risk that we must highlight to readers.\nMoreover, therecent regulatory comments by FINRAand the SEC over restrictions to options trading could continue to affect sentiment around FinTech stocks like SoFi. Options trading has been very profitable for the market makers and brokerages like Robinhood (HOOD). Retail traders accounted for more than \"25% of total optionstrading activity\". Moreover, the average daily volume of total options contracts traded also rose 35% YoY to 39M, to the \"highest level ever.\" Since options trading comes with leverage, we believe that it's only prudent that regulators are evaluating the need to restrict the marketing of options trading. Investors who are not well-versed in options trading could have their portfolios decimated if their risk management was poor.\nHowever,SoFi has no exposure to options trading currently. Nevertheless, it might reduce the potential opportunity for SoFi if certain restrictions were implemented. However, there's no impact on its current estimates, and thus investors should not be unduly concerned. Therefore, any short-term headwinds or knee-jerk reaction to such concerns should be capitalized on by investors.\nSo, Is SOFI Stock A Buy Now?\nSoFi adjusted revenue and adjusted EBITDA margins. Data source: S&P Capital IQ\nSOFI stock EV/NTM Revenue.\nSoFi's adjusted revenue is estimated to increase at a CAGR of 44.6% over the next two years. Notably, its estimated adjusted EBITDA margin is expected to grow to 20.4% from just 2.8% in FY21 (SoFi guided for 3%). Therefore, we believe that investors might see tremendous revenue and bottom-line growth in the next two years if SoFi continues to execute its strategy well. Nevertheless, the tailwinds supporting the growth in its lending segment must continue to underpin the momentum in its financial services segment.\nMoreover, SoFi stock is trading at an EV/NTM Revenue of 9.1x. The stock has also been strongly supported whenever its revenue multiple fell to around 9.2x. In addition, its stock is also testing a key support level that attracted a series of insider purchases in August.\nTherefore,we reiterate our Buy rating on SOFI stock. We believe the tailwinds driving its lending and financial services business are multi-year. Coupled with a potential bank charter in the works, SoFi stock is still very early in exploiting its market opportunities. However, we believe it's suitable for speculative investors only due to its volatility. In addition, we also encourage investors to add in phases.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":698682474,"gmtCreate":1640381934689,"gmtModify":1640382027174,"author":{"id":"3580799596568967","authorId":"3580799596568967","name":"WifeWhyWhy","avatar":"https://static.tigerbbs.com/27b090f2d194da555f7652c92f28fc6b","vip":1,"crmLevel":5,"crmLevelSwitch":0},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":2,"essential":1,"paper":1,"likeSize":2,"commentSize":14,"repostSize":0,"link":"https://laohu8.com/post/698682474","repostId":1153187365,"repostType":4,"repost":{"id":"1153187365","pubTimestamp":1640333284,"share":"https://www.laohu8.com/m/news/1153187365?lang=&edition=full","pubTime":"2021-12-24 16:08","market":"us","language":"en","title":"Where Is SoFi Stock Headed In 2022?","url":"https://stock-news.laohu8.com/highlight/detail?id=1153187365","media":"seekingalpha","summary":"Summary\n\nSoFi stock has been battered recently due to headwinds facing FinTech stocks in general.\nTh","content":"Summary\n<ul>\n <li>SoFi stock has been battered recently due to headwinds facing FinTech stocks in general.</li>\n <li>The company is still in the early innings of its market opportunities. But, it already expects to report adjusted EBITDA profits for FY21.</li>\n <li>We discuss where SoFi stock is heading as we move towards 2022.</li>\n <li>I do much more than just articles at Ultimate Growth Investing: Members get access to model portfolios, regular updates, a chat room, and more.</li>\n</ul>\nInvestment Thesis\nSoFi Technologies, Inc. (SOFI) is an emerging leader among new FinTech players who are keen to disrupt the legacy players with their members-focused strategy. SoFi believes that legacy players don't focus on maximizing the lifetime value of their customers. Instead, they are focused on their short-term profit goals. However, SoFi endeavors to build its business model around its members, helping them achieve their goals. Therefore, the company has developed a vertically integrated platform that serves its members seamlessly. Consequently, SoFi has consistently reported strong product and members growth over time, validating its strategy. CEO Anthony Noto reminds us of SoFi's mission (edited):\n<blockquote>\n Not only do we want to have a lifetime relationship with our members, but we want to be there for every major financial decision they have in their lives as well as all the days in between. And in order to do that, we need to help them get their money right. It means we have to help them borrow better, save better, spend better, protect better, invest better. (5th Annual Virtual Wells Fargo TMT Summit Conference)\n</blockquote>\nSOFI stock has also been battered in the recent retracement. Therefore, the stock is now back to its key support level, despite reporting solid FQ3 results. Therefore, we believe that the stock could make its move higher as we head into 2022. In addition, we discuss whether it's apt for investors to add exposure now.\nReaders new to SoFi canrefer to our previous article as a primer.\nSOFI Stock YTD Performance\n<img src=\"https://static.tigerbbs.com/3f2e6bfa68f54e73825fdd1f8dcbbe0e\" tg-width=\"1485\" tg-height=\"720\" width=\"100%\" height=\"auto\">SOFI stock YTD performance (as of 22 December'21).\nReaders can quickly glean that SOFI stock's price volatility is not for the faint-hearted. The stock has seen at least three sharp upward momentum spikes throughout the year that sent the stock's YTD gains to 100% in February. However, the stock's mean-reversion tendencies continue to weigh on its upward momentum. Therefore, investors who added the stock at the highs might have suffered steep losses as the stock retraced. Moreover, its relatively&nbsp;high short percent of float at just under 10%throughout the year could also have contributed to its high volatility. Nevertheless, the stock has managed to keep itself within sight of the broad market leaders with a YTD gain of 20.5%.\nStrong Focus On Members Drive Consistent Product Growth\n<img src=\"https://static.tigerbbs.com/fa7169dadeb5216b68c06991fdaa12b3\" tg-width=\"1022\" tg-height=\"629\" width=\"100%\" height=\"auto\">SoFi average products per member. Data source: Company filings\n<img src=\"https://static.tigerbbs.com/eb1ec47ef6a47a426dd4a0479ddab86a\" tg-width=\"1222\" tg-height=\"739\" width=\"100%\" height=\"auto\">Sofi average products per member by segment. Data source: Company filings\nSoFi has clearly driven strong product adoption across its growing member base that reached 2.94M members in FQ3. It also added 377K members, which, according to SoFi, was its second-highest quarterly increase. Notably, its strong member-focused business model also drove its average products per member, which reached 1.45 in FQ3. We can also observe the strong growth in financial services products per member as seen above. Its highly profitable lending segment serves as its funnel to grow its still nascent financial services segment. It's a critical segment to drive engagement due to the core products involved, such as savings, investments, and spending-related products. Some readers may observe that the average lending products per member seem to be dropping. However, we think there's no cause for concern here as the company listed eight financial services products compared to just three lending products. Moreover, the lending products are also highly specific for meeting members' needs. For example, if you are not a student, you wouldn't be taking up a student loan. However, its financial services products are designed for all its members. Therefore, we should focus on the traction of its financial services segment to evaluate the strength of the adoption of its products.\nMoreover, the company strongly believes that its \"vertically-integrated\" technology platform is its key competitive advantage. It allows the company to deliver a seamless onboarding experience across various product lines for its customers. SoFi believes that its platform advantage will continue to help it extend the rapid adoption of its products across its growing member base. Noto articulated (edited):\n<blockquote>\n At a macro level, we have better technology.We have the ability to use data because it's not siloed.\n We're vertically integrated. For many banks, their core banking technologies are still on-premise. In many cases, they're still siloed, and therefore, that silos the data and also real-time decisioning. You can't get to that ease of use and that functionality, if you have different data architectures and you have different core technologies. And so we definitely benefit from our technology approach and our data architecture. (5th Annual Virtual Wells Fargo TMT Summit Conference)\n</blockquote>\nStrong Lending And Tech Segment Give SoFi Time To Build Up Its Financial Services Segment\n<img src=\"https://static.tigerbbs.com/c056c5d40607297814798de0f03d7b84\" tg-width=\"1231\" tg-height=\"744\" width=\"100%\" height=\"auto\">SoFi FQ1-FQ3'21 adjusted revenue and adjusted contribution profit by segment. Data source: Company filings\n<img src=\"https://static.tigerbbs.com/e1292224be26d73718a396ca582da342\" tg-width=\"1213\" tg-height=\"740\" width=\"100%\" height=\"auto\">SoFi adjusted contribution margin by segment. Data source: Company filings\nSoFi has consistently telegraphed that it operates in a market with a massive TAM. The lending market easily extends into trillions of dollars. Therefore, the company believes that its lending opportunities are still in the early innings. Notably, it already operates a solidly profitable lending and technology segment, as we can observe above. Its lending segment continues to be its key revenue driver in 2021, and it has been growing rapidly. Notably, it's also highly profitable, as SoFi reported an adjusted contribution margin of 54.6% in FQ3'21. Its contribution margin has also remained consistent throughout the year, despite the headwinds faced in the student loans market. Therefore, we are confident that SoFi's diversified loans portfolio can sustain its lending segment. Importantly, it gives SoFi time and flexibility to expand its financial services segment that is still incurring significant losses. However, the company sees a \"500M FDIC accounts\" opportunity ready for disruption.\n<img src=\"https://static.tigerbbs.com/849389677e66c8c24557d73422702951\" tg-width=\"1062\" tg-height=\"649\" width=\"100%\" height=\"auto\">SoFi adjusted EBITDA margins. Data source: Company filings\nThe company focuses on what it calls a \"higher-end demographic, with a household income of above $100K.\" Therefore, it targets higher-quality members that it believes can significantly contribute to its product adoptions and revenue growth. Moreover, the company believes that it's on track to hit its 10M members target by focusing on its \"best-in-class\" products. Noto emphasized (edited):\n<blockquote>\n \"\n I would be really disappointed if we didn't achieve our 5-year plan that we laid out and getting to 10 million membersat SoFi and obviously more products than that. We're challenging ourselves to build a best-in-class product across four big macros, fast, selection, content, and convenience. Now those are pretty common adjectives, and they may not sound differentiated. But within each one, there is a ton of differentiation.\"\n</blockquote>\nMoreover, we believe that the company is well-placed to build on its platform advantage in its fast-growing financial services segment. It can leverage its profitable lending segment despite incurring losses for now. Notably, the company has turned adjusted EBITDA profitable on a consolidated basis and is expected to maintain its profitability moving ahead.\nNevertheless, two key risks may continue to impinge on its stock momentum in the near term. However, these risks are not new, and we don't expect them to be significant structural issues. President Biden just extended the student loan payment pause until 1 May'22. The Omicron variant has thrown a spanner in the works. But, we believe it only pushes back the restart of the repayment but is unlikely to be totally canceled. There is more than $1.6T of student debt outstanding, and the ramifications could be devastating. Notwithstanding, it's still a risk that we must highlight to readers.\nMoreover, therecent regulatory comments by FINRAand the SEC over restrictions to options trading could continue to affect sentiment around FinTech stocks like SoFi. Options trading has been very profitable for the market makers and brokerages like Robinhood (HOOD). Retail traders accounted for more than \"25% of total optionstrading activity\". Moreover, the average daily volume of total options contracts traded also rose 35% YoY to 39M, to the \"highest level ever.\" Since options trading comes with leverage, we believe that it's only prudent that regulators are evaluating the need to restrict the marketing of options trading. Investors who are not well-versed in options trading could have their portfolios decimated if their risk management was poor.\nHowever,SoFi has no exposure to options trading currently. Nevertheless, it might reduce the potential opportunity for SoFi if certain restrictions were implemented. However, there's no impact on its current estimates, and thus investors should not be unduly concerned. Therefore, any short-term headwinds or knee-jerk reaction to such concerns should be capitalized on by investors.\nSo, Is SOFI Stock A Buy Now?\n<img src=\"https://static.tigerbbs.com/7b3dcba281177d37e311accf244c9c19\" tg-width=\"1224\" tg-height=\"747\" width=\"100%\" height=\"auto\">SoFi adjusted revenue and adjusted EBITDA margins. Data source: S&amp;P Capital IQ\n<img src=\"https://static.tigerbbs.com/1dcec7448637c0257dd21f8abc415b9b\" tg-width=\"856\" tg-height=\"513\" width=\"100%\" height=\"auto\">SOFI stock EV/NTM Revenue.\nSoFi's adjusted revenue is estimated to increase at a CAGR of 44.6% over the next two years. Notably, its estimated adjusted EBITDA margin is expected to grow to 20.4% from just 2.8% in FY21 (SoFi guided for 3%). Therefore, we believe that investors might see tremendous revenue and bottom-line growth in the next two years if SoFi continues to execute its strategy well. Nevertheless, the tailwinds supporting the growth in its lending segment must continue to underpin the momentum in its financial services segment.\nMoreover, SoFi stock is trading at an EV/NTM Revenue of 9.1x. The stock has also been strongly supported whenever its revenue multiple fell to around 9.2x. In addition, its stock is also testing a key support level that attracted a series of insider purchases in August.\nTherefore,we reiterate our Buy rating on SOFI stock. We believe the tailwinds driving its lending and financial services business are multi-year. Coupled with a potential bank charter in the works, SoFi stock is still very early in exploiting its market opportunities. However, we believe it's suitable for speculative investors only due to its volatility. In addition, we also encourage investors to add in phases.","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Where Is SoFi Stock Headed In 2022?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhere Is SoFi Stock Headed In 2022?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-12-24 16:08 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4476606-where-is-sofi-stock-headed-2022>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nSoFi stock has been battered recently due to headwinds facing FinTech stocks in general.\nThe company is still in the early innings of its market opportunities. But, it already expects to ...\n\n<a href=\"https://seekingalpha.com/article/4476606-where-is-sofi-stock-headed-2022\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SOFI":"SoFi Technologies Inc."},"source_url":"https://seekingalpha.com/article/4476606-where-is-sofi-stock-headed-2022","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1153187365","content_text":"Summary\n\nSoFi stock has been battered recently due to headwinds facing FinTech stocks in general.\nThe company is still in the early innings of its market opportunities. But, it already expects to report adjusted EBITDA profits for FY21.\nWe discuss where SoFi stock is heading as we move towards 2022.\nI do much more than just articles at Ultimate Growth Investing: Members get access to model portfolios, regular updates, a chat room, and more.\n\nInvestment Thesis\nSoFi Technologies, Inc. (SOFI) is an emerging leader among new FinTech players who are keen to disrupt the legacy players with their members-focused strategy. SoFi believes that legacy players don't focus on maximizing the lifetime value of their customers. Instead, they are focused on their short-term profit goals. However, SoFi endeavors to build its business model around its members, helping them achieve their goals. Therefore, the company has developed a vertically integrated platform that serves its members seamlessly. Consequently, SoFi has consistently reported strong product and members growth over time, validating its strategy. CEO Anthony Noto reminds us of SoFi's mission (edited):\n\n Not only do we want to have a lifetime relationship with our members, but we want to be there for every major financial decision they have in their lives as well as all the days in between. And in order to do that, we need to help them get their money right. It means we have to help them borrow better, save better, spend better, protect better, invest better. (5th Annual Virtual Wells Fargo TMT Summit Conference)\n\nSOFI stock has also been battered in the recent retracement. Therefore, the stock is now back to its key support level, despite reporting solid FQ3 results. Therefore, we believe that the stock could make its move higher as we head into 2022. In addition, we discuss whether it's apt for investors to add exposure now.\nReaders new to SoFi canrefer to our previous article as a primer.\nSOFI Stock YTD Performance\nSOFI stock YTD performance (as of 22 December'21).\nReaders can quickly glean that SOFI stock's price volatility is not for the faint-hearted. The stock has seen at least three sharp upward momentum spikes throughout the year that sent the stock's YTD gains to 100% in February. However, the stock's mean-reversion tendencies continue to weigh on its upward momentum. Therefore, investors who added the stock at the highs might have suffered steep losses as the stock retraced. Moreover, its relatively high short percent of float at just under 10%throughout the year could also have contributed to its high volatility. Nevertheless, the stock has managed to keep itself within sight of the broad market leaders with a YTD gain of 20.5%.\nStrong Focus On Members Drive Consistent Product Growth\nSoFi average products per member. Data source: Company filings\nSofi average products per member by segment. Data source: Company filings\nSoFi has clearly driven strong product adoption across its growing member base that reached 2.94M members in FQ3. It also added 377K members, which, according to SoFi, was its second-highest quarterly increase. Notably, its strong member-focused business model also drove its average products per member, which reached 1.45 in FQ3. We can also observe the strong growth in financial services products per member as seen above. Its highly profitable lending segment serves as its funnel to grow its still nascent financial services segment. It's a critical segment to drive engagement due to the core products involved, such as savings, investments, and spending-related products. Some readers may observe that the average lending products per member seem to be dropping. However, we think there's no cause for concern here as the company listed eight financial services products compared to just three lending products. Moreover, the lending products are also highly specific for meeting members' needs. For example, if you are not a student, you wouldn't be taking up a student loan. However, its financial services products are designed for all its members. Therefore, we should focus on the traction of its financial services segment to evaluate the strength of the adoption of its products.\nMoreover, the company strongly believes that its \"vertically-integrated\" technology platform is its key competitive advantage. It allows the company to deliver a seamless onboarding experience across various product lines for its customers. SoFi believes that its platform advantage will continue to help it extend the rapid adoption of its products across its growing member base. Noto articulated (edited):\n\nAt a macro level, we have better technology.We have the ability to use data because it's not siloed.\n We're vertically integrated. For many banks, their core banking technologies are still on-premise. In many cases, they're still siloed, and therefore, that silos the data and also real-time decisioning. You can't get to that ease of use and that functionality, if you have different data architectures and you have different core technologies. And so we definitely benefit from our technology approach and our data architecture. (5th Annual Virtual Wells Fargo TMT Summit Conference)\n\nStrong Lending And Tech Segment Give SoFi Time To Build Up Its Financial Services Segment\nSoFi FQ1-FQ3'21 adjusted revenue and adjusted contribution profit by segment. Data source: Company filings\nSoFi adjusted contribution margin by segment. Data source: Company filings\nSoFi has consistently telegraphed that it operates in a market with a massive TAM. The lending market easily extends into trillions of dollars. Therefore, the company believes that its lending opportunities are still in the early innings. Notably, it already operates a solidly profitable lending and technology segment, as we can observe above. Its lending segment continues to be its key revenue driver in 2021, and it has been growing rapidly. Notably, it's also highly profitable, as SoFi reported an adjusted contribution margin of 54.6% in FQ3'21. Its contribution margin has also remained consistent throughout the year, despite the headwinds faced in the student loans market. Therefore, we are confident that SoFi's diversified loans portfolio can sustain its lending segment. Importantly, it gives SoFi time and flexibility to expand its financial services segment that is still incurring significant losses. However, the company sees a \"500M FDIC accounts\" opportunity ready for disruption.\nSoFi adjusted EBITDA margins. Data source: Company filings\nThe company focuses on what it calls a \"higher-end demographic, with a household income of above $100K.\" Therefore, it targets higher-quality members that it believes can significantly contribute to its product adoptions and revenue growth. Moreover, the company believes that it's on track to hit its 10M members target by focusing on its \"best-in-class\" products. Noto emphasized (edited):\n\n \"\n I would be really disappointed if we didn't achieve our 5-year plan that we laid out and getting to 10 million membersat SoFi and obviously more products than that. We're challenging ourselves to build a best-in-class product across four big macros, fast, selection, content, and convenience. Now those are pretty common adjectives, and they may not sound differentiated. But within each one, there is a ton of differentiation.\"\n\nMoreover, we believe that the company is well-placed to build on its platform advantage in its fast-growing financial services segment. It can leverage its profitable lending segment despite incurring losses for now. Notably, the company has turned adjusted EBITDA profitable on a consolidated basis and is expected to maintain its profitability moving ahead.\nNevertheless, two key risks may continue to impinge on its stock momentum in the near term. However, these risks are not new, and we don't expect them to be significant structural issues. President Biden just extended the student loan payment pause until 1 May'22. The Omicron variant has thrown a spanner in the works. But, we believe it only pushes back the restart of the repayment but is unlikely to be totally canceled. There is more than $1.6T of student debt outstanding, and the ramifications could be devastating. Notwithstanding, it's still a risk that we must highlight to readers.\nMoreover, therecent regulatory comments by FINRAand the SEC over restrictions to options trading could continue to affect sentiment around FinTech stocks like SoFi. Options trading has been very profitable for the market makers and brokerages like Robinhood (HOOD). Retail traders accounted for more than \"25% of total optionstrading activity\". Moreover, the average daily volume of total options contracts traded also rose 35% YoY to 39M, to the \"highest level ever.\" Since options trading comes with leverage, we believe that it's only prudent that regulators are evaluating the need to restrict the marketing of options trading. Investors who are not well-versed in options trading could have their portfolios decimated if their risk management was poor.\nHowever,SoFi has no exposure to options trading currently. Nevertheless, it might reduce the potential opportunity for SoFi if certain restrictions were implemented. However, there's no impact on its current estimates, and thus investors should not be unduly concerned. Therefore, any short-term headwinds or knee-jerk reaction to such concerns should be capitalized on by investors.\nSo, Is SOFI Stock A Buy Now?\nSoFi adjusted revenue and adjusted EBITDA margins. Data source: S&P Capital IQ\nSOFI stock EV/NTM Revenue.\nSoFi's adjusted revenue is estimated to increase at a CAGR of 44.6% over the next two years. Notably, its estimated adjusted EBITDA margin is expected to grow to 20.4% from just 2.8% in FY21 (SoFi guided for 3%). Therefore, we believe that investors might see tremendous revenue and bottom-line growth in the next two years if SoFi continues to execute its strategy well. Nevertheless, the tailwinds supporting the growth in its lending segment must continue to underpin the momentum in its financial services segment.\nMoreover, SoFi stock is trading at an EV/NTM Revenue of 9.1x. The stock has also been strongly supported whenever its revenue multiple fell to around 9.2x. In addition, its stock is also testing a key support level that attracted a series of insider purchases in August.\nTherefore,we reiterate our Buy rating on SOFI stock. We believe the tailwinds driving its lending and financial services business are multi-year. Coupled with a potential bank charter in the works, SoFi stock is still very early in exploiting its market opportunities. However, we believe it's suitable for speculative investors only due to its volatility. In addition, we also encourage investors to add in phases.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":7100564,"gmtCreate":1640382027104,"gmtModify":1640382027197,"authorId":3580799596568967,"author":{"id":3580799596568967,"authorId":3580799596568967,"name":"WifeWhyWhy","avatar":"https://static.tigerbbs.com/27b090f2d194da555f7652c92f28fc6b","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":698682474,"type":1,"supId":0,"prevId":0,"content":"🐦","text":"🐦","html":"🐦"},{"id":7100562,"gmtCreate":1640382019989,"gmtModify":1640382020072,"authorId":3580799596568967,"author":{"id":3580799596568967,"authorId":3580799596568967,"name":"WifeWhyWhy","avatar":"https://static.tigerbbs.com/27b090f2d194da555f7652c92f28fc6b","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":698682474,"type":1,"supId":0,"prevId":0,"content":"🦔","text":"🦔","html":"🦔"},{"id":7100561,"gmtCreate":1640382014370,"gmtModify":1640382014454,"authorId":3580799596568967,"author":{"id":3580799596568967,"authorId":3580799596568967,"name":"WifeWhyWhy","avatar":"https://static.tigerbbs.com/27b090f2d194da555f7652c92f28fc6b","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":698682474,"type":1,"supId":0,"prevId":0,"content":"🐃","text":"🐃","html":"🐃"},{"id":7100558,"gmtCreate":1640382007809,"gmtModify":1640382007838,"authorId":3580799596568967,"author":{"id":3580799596568967,"authorId":3580799596568967,"name":"WifeWhyWhy","avatar":"https://static.tigerbbs.com/27b090f2d194da555f7652c92f28fc6b","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":698682474,"type":1,"supId":0,"prevId":0,"content":"🦒","text":"🦒","html":"🦒"},{"id":7100556,"gmtCreate":1640382002316,"gmtModify":1640382002343,"authorId":3580799596568967,"author":{"id":3580799596568967,"authorId":3580799596568967,"name":"WifeWhyWhy","avatar":"https://static.tigerbbs.com/27b090f2d194da555f7652c92f28fc6b","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":698682474,"type":1,"supId":0,"prevId":0,"content":"🦥","text":"🦥","html":"🦥"}],"langContent":"CN"},{"id":698881920,"gmtCreate":1640339557063,"gmtModify":1640339557063,"author":{"id":"3575085237839408","authorId":"3575085237839408","name":"KokTong","avatar":"https://static.tigerbbs.com/02f7e5a5dfae2a5a3102418ad5bfc1dd","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"up","listText":"up","text":"up","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/698881920","repostId":1153187365,"repostType":4,"repost":{"id":"1153187365","pubTimestamp":1640333284,"share":"https://www.laohu8.com/m/news/1153187365?lang=&edition=full","pubTime":"2021-12-24 16:08","market":"us","language":"en","title":"Where Is SoFi Stock Headed In 2022?","url":"https://stock-news.laohu8.com/highlight/detail?id=1153187365","media":"seekingalpha","summary":"Summary\n\nSoFi stock has been battered recently due to headwinds facing FinTech stocks in general.\nTh","content":"Summary\n<ul>\n <li>SoFi stock has been battered recently due to headwinds facing FinTech stocks in general.</li>\n <li>The company is still in the early innings of its market opportunities. But, it already expects to report adjusted EBITDA profits for FY21.</li>\n <li>We discuss where SoFi stock is heading as we move towards 2022.</li>\n <li>I do much more than just articles at Ultimate Growth Investing: Members get access to model portfolios, regular updates, a chat room, and more.</li>\n</ul>\nInvestment Thesis\nSoFi Technologies, Inc. (SOFI) is an emerging leader among new FinTech players who are keen to disrupt the legacy players with their members-focused strategy. SoFi believes that legacy players don't focus on maximizing the lifetime value of their customers. Instead, they are focused on their short-term profit goals. However, SoFi endeavors to build its business model around its members, helping them achieve their goals. Therefore, the company has developed a vertically integrated platform that serves its members seamlessly. Consequently, SoFi has consistently reported strong product and members growth over time, validating its strategy. CEO Anthony Noto reminds us of SoFi's mission (edited):\n<blockquote>\n Not only do we want to have a lifetime relationship with our members, but we want to be there for every major financial decision they have in their lives as well as all the days in between. And in order to do that, we need to help them get their money right. It means we have to help them borrow better, save better, spend better, protect better, invest better. (5th Annual Virtual Wells Fargo TMT Summit Conference)\n</blockquote>\nSOFI stock has also been battered in the recent retracement. Therefore, the stock is now back to its key support level, despite reporting solid FQ3 results. Therefore, we believe that the stock could make its move higher as we head into 2022. In addition, we discuss whether it's apt for investors to add exposure now.\nReaders new to SoFi canrefer to our previous article as a primer.\nSOFI Stock YTD Performance\n<img src=\"https://static.tigerbbs.com/3f2e6bfa68f54e73825fdd1f8dcbbe0e\" tg-width=\"1485\" tg-height=\"720\" width=\"100%\" height=\"auto\">SOFI stock YTD performance (as of 22 December'21).\nReaders can quickly glean that SOFI stock's price volatility is not for the faint-hearted. The stock has seen at least three sharp upward momentum spikes throughout the year that sent the stock's YTD gains to 100% in February. However, the stock's mean-reversion tendencies continue to weigh on its upward momentum. Therefore, investors who added the stock at the highs might have suffered steep losses as the stock retraced. Moreover, its relatively&nbsp;high short percent of float at just under 10%throughout the year could also have contributed to its high volatility. Nevertheless, the stock has managed to keep itself within sight of the broad market leaders with a YTD gain of 20.5%.\nStrong Focus On Members Drive Consistent Product Growth\n<img src=\"https://static.tigerbbs.com/fa7169dadeb5216b68c06991fdaa12b3\" tg-width=\"1022\" tg-height=\"629\" width=\"100%\" height=\"auto\">SoFi average products per member. Data source: Company filings\n<img src=\"https://static.tigerbbs.com/eb1ec47ef6a47a426dd4a0479ddab86a\" tg-width=\"1222\" tg-height=\"739\" width=\"100%\" height=\"auto\">Sofi average products per member by segment. Data source: Company filings\nSoFi has clearly driven strong product adoption across its growing member base that reached 2.94M members in FQ3. It also added 377K members, which, according to SoFi, was its second-highest quarterly increase. Notably, its strong member-focused business model also drove its average products per member, which reached 1.45 in FQ3. We can also observe the strong growth in financial services products per member as seen above. Its highly profitable lending segment serves as its funnel to grow its still nascent financial services segment. It's a critical segment to drive engagement due to the core products involved, such as savings, investments, and spending-related products. Some readers may observe that the average lending products per member seem to be dropping. However, we think there's no cause for concern here as the company listed eight financial services products compared to just three lending products. Moreover, the lending products are also highly specific for meeting members' needs. For example, if you are not a student, you wouldn't be taking up a student loan. However, its financial services products are designed for all its members. Therefore, we should focus on the traction of its financial services segment to evaluate the strength of the adoption of its products.\nMoreover, the company strongly believes that its \"vertically-integrated\" technology platform is its key competitive advantage. It allows the company to deliver a seamless onboarding experience across various product lines for its customers. SoFi believes that its platform advantage will continue to help it extend the rapid adoption of its products across its growing member base. Noto articulated (edited):\n<blockquote>\n At a macro level, we have better technology.We have the ability to use data because it's not siloed.\n We're vertically integrated. For many banks, their core banking technologies are still on-premise. In many cases, they're still siloed, and therefore, that silos the data and also real-time decisioning. You can't get to that ease of use and that functionality, if you have different data architectures and you have different core technologies. And so we definitely benefit from our technology approach and our data architecture. (5th Annual Virtual Wells Fargo TMT Summit Conference)\n</blockquote>\nStrong Lending And Tech Segment Give SoFi Time To Build Up Its Financial Services Segment\n<img src=\"https://static.tigerbbs.com/c056c5d40607297814798de0f03d7b84\" tg-width=\"1231\" tg-height=\"744\" width=\"100%\" height=\"auto\">SoFi FQ1-FQ3'21 adjusted revenue and adjusted contribution profit by segment. Data source: Company filings\n<img src=\"https://static.tigerbbs.com/e1292224be26d73718a396ca582da342\" tg-width=\"1213\" tg-height=\"740\" width=\"100%\" height=\"auto\">SoFi adjusted contribution margin by segment. Data source: Company filings\nSoFi has consistently telegraphed that it operates in a market with a massive TAM. The lending market easily extends into trillions of dollars. Therefore, the company believes that its lending opportunities are still in the early innings. Notably, it already operates a solidly profitable lending and technology segment, as we can observe above. Its lending segment continues to be its key revenue driver in 2021, and it has been growing rapidly. Notably, it's also highly profitable, as SoFi reported an adjusted contribution margin of 54.6% in FQ3'21. Its contribution margin has also remained consistent throughout the year, despite the headwinds faced in the student loans market. Therefore, we are confident that SoFi's diversified loans portfolio can sustain its lending segment. Importantly, it gives SoFi time and flexibility to expand its financial services segment that is still incurring significant losses. However, the company sees a \"500M FDIC accounts\" opportunity ready for disruption.\n<img src=\"https://static.tigerbbs.com/849389677e66c8c24557d73422702951\" tg-width=\"1062\" tg-height=\"649\" width=\"100%\" height=\"auto\">SoFi adjusted EBITDA margins. Data source: Company filings\nThe company focuses on what it calls a \"higher-end demographic, with a household income of above $100K.\" Therefore, it targets higher-quality members that it believes can significantly contribute to its product adoptions and revenue growth. Moreover, the company believes that it's on track to hit its 10M members target by focusing on its \"best-in-class\" products. Noto emphasized (edited):\n<blockquote>\n \"\n I would be really disappointed if we didn't achieve our 5-year plan that we laid out and getting to 10 million membersat SoFi and obviously more products than that. We're challenging ourselves to build a best-in-class product across four big macros, fast, selection, content, and convenience. Now those are pretty common adjectives, and they may not sound differentiated. But within each one, there is a ton of differentiation.\"\n</blockquote>\nMoreover, we believe that the company is well-placed to build on its platform advantage in its fast-growing financial services segment. It can leverage its profitable lending segment despite incurring losses for now. Notably, the company has turned adjusted EBITDA profitable on a consolidated basis and is expected to maintain its profitability moving ahead.\nNevertheless, two key risks may continue to impinge on its stock momentum in the near term. However, these risks are not new, and we don't expect them to be significant structural issues. President Biden just extended the student loan payment pause until 1 May'22. The Omicron variant has thrown a spanner in the works. But, we believe it only pushes back the restart of the repayment but is unlikely to be totally canceled. There is more than $1.6T of student debt outstanding, and the ramifications could be devastating. Notwithstanding, it's still a risk that we must highlight to readers.\nMoreover, therecent regulatory comments by FINRAand the SEC over restrictions to options trading could continue to affect sentiment around FinTech stocks like SoFi. Options trading has been very profitable for the market makers and brokerages like Robinhood (HOOD). Retail traders accounted for more than \"25% of total optionstrading activity\". Moreover, the average daily volume of total options contracts traded also rose 35% YoY to 39M, to the \"highest level ever.\" Since options trading comes with leverage, we believe that it's only prudent that regulators are evaluating the need to restrict the marketing of options trading. Investors who are not well-versed in options trading could have their portfolios decimated if their risk management was poor.\nHowever,SoFi has no exposure to options trading currently. Nevertheless, it might reduce the potential opportunity for SoFi if certain restrictions were implemented. However, there's no impact on its current estimates, and thus investors should not be unduly concerned. Therefore, any short-term headwinds or knee-jerk reaction to such concerns should be capitalized on by investors.\nSo, Is SOFI Stock A Buy Now?\n<img src=\"https://static.tigerbbs.com/7b3dcba281177d37e311accf244c9c19\" tg-width=\"1224\" tg-height=\"747\" width=\"100%\" height=\"auto\">SoFi adjusted revenue and adjusted EBITDA margins. Data source: S&amp;P Capital IQ\n<img src=\"https://static.tigerbbs.com/1dcec7448637c0257dd21f8abc415b9b\" tg-width=\"856\" tg-height=\"513\" width=\"100%\" height=\"auto\">SOFI stock EV/NTM Revenue.\nSoFi's adjusted revenue is estimated to increase at a CAGR of 44.6% over the next two years. Notably, its estimated adjusted EBITDA margin is expected to grow to 20.4% from just 2.8% in FY21 (SoFi guided for 3%). Therefore, we believe that investors might see tremendous revenue and bottom-line growth in the next two years if SoFi continues to execute its strategy well. Nevertheless, the tailwinds supporting the growth in its lending segment must continue to underpin the momentum in its financial services segment.\nMoreover, SoFi stock is trading at an EV/NTM Revenue of 9.1x. The stock has also been strongly supported whenever its revenue multiple fell to around 9.2x. In addition, its stock is also testing a key support level that attracted a series of insider purchases in August.\nTherefore,we reiterate our Buy rating on SOFI stock. We believe the tailwinds driving its lending and financial services business are multi-year. Coupled with a potential bank charter in the works, SoFi stock is still very early in exploiting its market opportunities. However, we believe it's suitable for speculative investors only due to its volatility. In addition, we also encourage investors to add in phases.","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Where Is SoFi Stock Headed In 2022?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhere Is SoFi Stock Headed In 2022?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-12-24 16:08 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4476606-where-is-sofi-stock-headed-2022>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nSoFi stock has been battered recently due to headwinds facing FinTech stocks in general.\nThe company is still in the early innings of its market opportunities. But, it already expects to ...\n\n<a href=\"https://seekingalpha.com/article/4476606-where-is-sofi-stock-headed-2022\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SOFI":"SoFi Technologies Inc."},"source_url":"https://seekingalpha.com/article/4476606-where-is-sofi-stock-headed-2022","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1153187365","content_text":"Summary\n\nSoFi stock has been battered recently due to headwinds facing FinTech stocks in general.\nThe company is still in the early innings of its market opportunities. But, it already expects to report adjusted EBITDA profits for FY21.\nWe discuss where SoFi stock is heading as we move towards 2022.\nI do much more than just articles at Ultimate Growth Investing: Members get access to model portfolios, regular updates, a chat room, and more.\n\nInvestment Thesis\nSoFi Technologies, Inc. (SOFI) is an emerging leader among new FinTech players who are keen to disrupt the legacy players with their members-focused strategy. SoFi believes that legacy players don't focus on maximizing the lifetime value of their customers. Instead, they are focused on their short-term profit goals. However, SoFi endeavors to build its business model around its members, helping them achieve their goals. Therefore, the company has developed a vertically integrated platform that serves its members seamlessly. Consequently, SoFi has consistently reported strong product and members growth over time, validating its strategy. CEO Anthony Noto reminds us of SoFi's mission (edited):\n\n Not only do we want to have a lifetime relationship with our members, but we want to be there for every major financial decision they have in their lives as well as all the days in between. And in order to do that, we need to help them get their money right. It means we have to help them borrow better, save better, spend better, protect better, invest better. (5th Annual Virtual Wells Fargo TMT Summit Conference)\n\nSOFI stock has also been battered in the recent retracement. Therefore, the stock is now back to its key support level, despite reporting solid FQ3 results. Therefore, we believe that the stock could make its move higher as we head into 2022. In addition, we discuss whether it's apt for investors to add exposure now.\nReaders new to SoFi canrefer to our previous article as a primer.\nSOFI Stock YTD Performance\nSOFI stock YTD performance (as of 22 December'21).\nReaders can quickly glean that SOFI stock's price volatility is not for the faint-hearted. The stock has seen at least three sharp upward momentum spikes throughout the year that sent the stock's YTD gains to 100% in February. However, the stock's mean-reversion tendencies continue to weigh on its upward momentum. Therefore, investors who added the stock at the highs might have suffered steep losses as the stock retraced. Moreover, its relatively high short percent of float at just under 10%throughout the year could also have contributed to its high volatility. Nevertheless, the stock has managed to keep itself within sight of the broad market leaders with a YTD gain of 20.5%.\nStrong Focus On Members Drive Consistent Product Growth\nSoFi average products per member. Data source: Company filings\nSofi average products per member by segment. Data source: Company filings\nSoFi has clearly driven strong product adoption across its growing member base that reached 2.94M members in FQ3. It also added 377K members, which, according to SoFi, was its second-highest quarterly increase. Notably, its strong member-focused business model also drove its average products per member, which reached 1.45 in FQ3. We can also observe the strong growth in financial services products per member as seen above. Its highly profitable lending segment serves as its funnel to grow its still nascent financial services segment. It's a critical segment to drive engagement due to the core products involved, such as savings, investments, and spending-related products. Some readers may observe that the average lending products per member seem to be dropping. However, we think there's no cause for concern here as the company listed eight financial services products compared to just three lending products. Moreover, the lending products are also highly specific for meeting members' needs. For example, if you are not a student, you wouldn't be taking up a student loan. However, its financial services products are designed for all its members. Therefore, we should focus on the traction of its financial services segment to evaluate the strength of the adoption of its products.\nMoreover, the company strongly believes that its \"vertically-integrated\" technology platform is its key competitive advantage. It allows the company to deliver a seamless onboarding experience across various product lines for its customers. SoFi believes that its platform advantage will continue to help it extend the rapid adoption of its products across its growing member base. Noto articulated (edited):\n\nAt a macro level, we have better technology.We have the ability to use data because it's not siloed.\n We're vertically integrated. For many banks, their core banking technologies are still on-premise. In many cases, they're still siloed, and therefore, that silos the data and also real-time decisioning. You can't get to that ease of use and that functionality, if you have different data architectures and you have different core technologies. And so we definitely benefit from our technology approach and our data architecture. (5th Annual Virtual Wells Fargo TMT Summit Conference)\n\nStrong Lending And Tech Segment Give SoFi Time To Build Up Its Financial Services Segment\nSoFi FQ1-FQ3'21 adjusted revenue and adjusted contribution profit by segment. Data source: Company filings\nSoFi adjusted contribution margin by segment. Data source: Company filings\nSoFi has consistently telegraphed that it operates in a market with a massive TAM. The lending market easily extends into trillions of dollars. Therefore, the company believes that its lending opportunities are still in the early innings. Notably, it already operates a solidly profitable lending and technology segment, as we can observe above. Its lending segment continues to be its key revenue driver in 2021, and it has been growing rapidly. Notably, it's also highly profitable, as SoFi reported an adjusted contribution margin of 54.6% in FQ3'21. Its contribution margin has also remained consistent throughout the year, despite the headwinds faced in the student loans market. Therefore, we are confident that SoFi's diversified loans portfolio can sustain its lending segment. Importantly, it gives SoFi time and flexibility to expand its financial services segment that is still incurring significant losses. However, the company sees a \"500M FDIC accounts\" opportunity ready for disruption.\nSoFi adjusted EBITDA margins. Data source: Company filings\nThe company focuses on what it calls a \"higher-end demographic, with a household income of above $100K.\" Therefore, it targets higher-quality members that it believes can significantly contribute to its product adoptions and revenue growth. Moreover, the company believes that it's on track to hit its 10M members target by focusing on its \"best-in-class\" products. Noto emphasized (edited):\n\n \"\n I would be really disappointed if we didn't achieve our 5-year plan that we laid out and getting to 10 million membersat SoFi and obviously more products than that. We're challenging ourselves to build a best-in-class product across four big macros, fast, selection, content, and convenience. Now those are pretty common adjectives, and they may not sound differentiated. But within each one, there is a ton of differentiation.\"\n\nMoreover, we believe that the company is well-placed to build on its platform advantage in its fast-growing financial services segment. It can leverage its profitable lending segment despite incurring losses for now. Notably, the company has turned adjusted EBITDA profitable on a consolidated basis and is expected to maintain its profitability moving ahead.\nNevertheless, two key risks may continue to impinge on its stock momentum in the near term. However, these risks are not new, and we don't expect them to be significant structural issues. President Biden just extended the student loan payment pause until 1 May'22. The Omicron variant has thrown a spanner in the works. But, we believe it only pushes back the restart of the repayment but is unlikely to be totally canceled. There is more than $1.6T of student debt outstanding, and the ramifications could be devastating. Notwithstanding, it's still a risk that we must highlight to readers.\nMoreover, therecent regulatory comments by FINRAand the SEC over restrictions to options trading could continue to affect sentiment around FinTech stocks like SoFi. Options trading has been very profitable for the market makers and brokerages like Robinhood (HOOD). Retail traders accounted for more than \"25% of total optionstrading activity\". Moreover, the average daily volume of total options contracts traded also rose 35% YoY to 39M, to the \"highest level ever.\" Since options trading comes with leverage, we believe that it's only prudent that regulators are evaluating the need to restrict the marketing of options trading. Investors who are not well-versed in options trading could have their portfolios decimated if their risk management was poor.\nHowever,SoFi has no exposure to options trading currently. Nevertheless, it might reduce the potential opportunity for SoFi if certain restrictions were implemented. However, there's no impact on its current estimates, and thus investors should not be unduly concerned. Therefore, any short-term headwinds or knee-jerk reaction to such concerns should be capitalized on by investors.\nSo, Is SOFI Stock A Buy Now?\nSoFi adjusted revenue and adjusted EBITDA margins. Data source: S&P Capital IQ\nSOFI stock EV/NTM Revenue.\nSoFi's adjusted revenue is estimated to increase at a CAGR of 44.6% over the next two years. Notably, its estimated adjusted EBITDA margin is expected to grow to 20.4% from just 2.8% in FY21 (SoFi guided for 3%). Therefore, we believe that investors might see tremendous revenue and bottom-line growth in the next two years if SoFi continues to execute its strategy well. Nevertheless, the tailwinds supporting the growth in its lending segment must continue to underpin the momentum in its financial services segment.\nMoreover, SoFi stock is trading at an EV/NTM Revenue of 9.1x. The stock has also been strongly supported whenever its revenue multiple fell to around 9.2x. In addition, its stock is also testing a key support level that attracted a series of insider purchases in August.\nTherefore,we reiterate our Buy rating on SOFI stock. We believe the tailwinds driving its lending and financial services business are multi-year. Coupled with a potential bank charter in the works, SoFi stock is still very early in exploiting its market opportunities. However, we believe it's suitable for speculative investors only due to its volatility. In addition, we also encourage investors to add in phases.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"},{"id":698811026,"gmtCreate":1640336605383,"gmtModify":1640336626243,"author":{"id":"3568957285760850","authorId":"3568957285760850","name":"Greg2021","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":5,"crmLevelSwitch":0},"htmlText":"Go SOFI go!","listText":"Go SOFI go!","text":"Go SOFI go!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/698811026","repostId":1153187365,"repostType":4,"repost":{"id":"1153187365","pubTimestamp":1640333284,"share":"https://www.laohu8.com/m/news/1153187365?lang=&edition=full","pubTime":"2021-12-24 16:08","market":"us","language":"en","title":"Where Is SoFi Stock Headed In 2022?","url":"https://stock-news.laohu8.com/highlight/detail?id=1153187365","media":"seekingalpha","summary":"Summary\n\nSoFi stock has been battered recently due to headwinds facing FinTech stocks in general.\nTh","content":"Summary\n<ul>\n <li>SoFi stock has been battered recently due to headwinds facing FinTech stocks in general.</li>\n <li>The company is still in the early innings of its market opportunities. But, it already expects to report adjusted EBITDA profits for FY21.</li>\n <li>We discuss where SoFi stock is heading as we move towards 2022.</li>\n <li>I do much more than just articles at Ultimate Growth Investing: Members get access to model portfolios, regular updates, a chat room, and more.</li>\n</ul>\nInvestment Thesis\nSoFi Technologies, Inc. (SOFI) is an emerging leader among new FinTech players who are keen to disrupt the legacy players with their members-focused strategy. SoFi believes that legacy players don't focus on maximizing the lifetime value of their customers. Instead, they are focused on their short-term profit goals. However, SoFi endeavors to build its business model around its members, helping them achieve their goals. Therefore, the company has developed a vertically integrated platform that serves its members seamlessly. Consequently, SoFi has consistently reported strong product and members growth over time, validating its strategy. CEO Anthony Noto reminds us of SoFi's mission (edited):\n<blockquote>\n Not only do we want to have a lifetime relationship with our members, but we want to be there for every major financial decision they have in their lives as well as all the days in between. And in order to do that, we need to help them get their money right. It means we have to help them borrow better, save better, spend better, protect better, invest better. (5th Annual Virtual Wells Fargo TMT Summit Conference)\n</blockquote>\nSOFI stock has also been battered in the recent retracement. Therefore, the stock is now back to its key support level, despite reporting solid FQ3 results. Therefore, we believe that the stock could make its move higher as we head into 2022. In addition, we discuss whether it's apt for investors to add exposure now.\nReaders new to SoFi canrefer to our previous article as a primer.\nSOFI Stock YTD Performance\n<img src=\"https://static.tigerbbs.com/3f2e6bfa68f54e73825fdd1f8dcbbe0e\" tg-width=\"1485\" tg-height=\"720\" width=\"100%\" height=\"auto\">SOFI stock YTD performance (as of 22 December'21).\nReaders can quickly glean that SOFI stock's price volatility is not for the faint-hearted. The stock has seen at least three sharp upward momentum spikes throughout the year that sent the stock's YTD gains to 100% in February. However, the stock's mean-reversion tendencies continue to weigh on its upward momentum. Therefore, investors who added the stock at the highs might have suffered steep losses as the stock retraced. Moreover, its relatively&nbsp;high short percent of float at just under 10%throughout the year could also have contributed to its high volatility. Nevertheless, the stock has managed to keep itself within sight of the broad market leaders with a YTD gain of 20.5%.\nStrong Focus On Members Drive Consistent Product Growth\n<img src=\"https://static.tigerbbs.com/fa7169dadeb5216b68c06991fdaa12b3\" tg-width=\"1022\" tg-height=\"629\" width=\"100%\" height=\"auto\">SoFi average products per member. Data source: Company filings\n<img src=\"https://static.tigerbbs.com/eb1ec47ef6a47a426dd4a0479ddab86a\" tg-width=\"1222\" tg-height=\"739\" width=\"100%\" height=\"auto\">Sofi average products per member by segment. Data source: Company filings\nSoFi has clearly driven strong product adoption across its growing member base that reached 2.94M members in FQ3. It also added 377K members, which, according to SoFi, was its second-highest quarterly increase. Notably, its strong member-focused business model also drove its average products per member, which reached 1.45 in FQ3. We can also observe the strong growth in financial services products per member as seen above. Its highly profitable lending segment serves as its funnel to grow its still nascent financial services segment. It's a critical segment to drive engagement due to the core products involved, such as savings, investments, and spending-related products. Some readers may observe that the average lending products per member seem to be dropping. However, we think there's no cause for concern here as the company listed eight financial services products compared to just three lending products. Moreover, the lending products are also highly specific for meeting members' needs. For example, if you are not a student, you wouldn't be taking up a student loan. However, its financial services products are designed for all its members. Therefore, we should focus on the traction of its financial services segment to evaluate the strength of the adoption of its products.\nMoreover, the company strongly believes that its \"vertically-integrated\" technology platform is its key competitive advantage. It allows the company to deliver a seamless onboarding experience across various product lines for its customers. SoFi believes that its platform advantage will continue to help it extend the rapid adoption of its products across its growing member base. Noto articulated (edited):\n<blockquote>\n At a macro level, we have better technology.We have the ability to use data because it's not siloed.\n We're vertically integrated. For many banks, their core banking technologies are still on-premise. In many cases, they're still siloed, and therefore, that silos the data and also real-time decisioning. You can't get to that ease of use and that functionality, if you have different data architectures and you have different core technologies. And so we definitely benefit from our technology approach and our data architecture. (5th Annual Virtual Wells Fargo TMT Summit Conference)\n</blockquote>\nStrong Lending And Tech Segment Give SoFi Time To Build Up Its Financial Services Segment\n<img src=\"https://static.tigerbbs.com/c056c5d40607297814798de0f03d7b84\" tg-width=\"1231\" tg-height=\"744\" width=\"100%\" height=\"auto\">SoFi FQ1-FQ3'21 adjusted revenue and adjusted contribution profit by segment. Data source: Company filings\n<img src=\"https://static.tigerbbs.com/e1292224be26d73718a396ca582da342\" tg-width=\"1213\" tg-height=\"740\" width=\"100%\" height=\"auto\">SoFi adjusted contribution margin by segment. Data source: Company filings\nSoFi has consistently telegraphed that it operates in a market with a massive TAM. The lending market easily extends into trillions of dollars. Therefore, the company believes that its lending opportunities are still in the early innings. Notably, it already operates a solidly profitable lending and technology segment, as we can observe above. Its lending segment continues to be its key revenue driver in 2021, and it has been growing rapidly. Notably, it's also highly profitable, as SoFi reported an adjusted contribution margin of 54.6% in FQ3'21. Its contribution margin has also remained consistent throughout the year, despite the headwinds faced in the student loans market. Therefore, we are confident that SoFi's diversified loans portfolio can sustain its lending segment. Importantly, it gives SoFi time and flexibility to expand its financial services segment that is still incurring significant losses. However, the company sees a \"500M FDIC accounts\" opportunity ready for disruption.\n<img src=\"https://static.tigerbbs.com/849389677e66c8c24557d73422702951\" tg-width=\"1062\" tg-height=\"649\" width=\"100%\" height=\"auto\">SoFi adjusted EBITDA margins. Data source: Company filings\nThe company focuses on what it calls a \"higher-end demographic, with a household income of above $100K.\" Therefore, it targets higher-quality members that it believes can significantly contribute to its product adoptions and revenue growth. Moreover, the company believes that it's on track to hit its 10M members target by focusing on its \"best-in-class\" products. Noto emphasized (edited):\n<blockquote>\n \"\n I would be really disappointed if we didn't achieve our 5-year plan that we laid out and getting to 10 million membersat SoFi and obviously more products than that. We're challenging ourselves to build a best-in-class product across four big macros, fast, selection, content, and convenience. Now those are pretty common adjectives, and they may not sound differentiated. But within each one, there is a ton of differentiation.\"\n</blockquote>\nMoreover, we believe that the company is well-placed to build on its platform advantage in its fast-growing financial services segment. It can leverage its profitable lending segment despite incurring losses for now. Notably, the company has turned adjusted EBITDA profitable on a consolidated basis and is expected to maintain its profitability moving ahead.\nNevertheless, two key risks may continue to impinge on its stock momentum in the near term. However, these risks are not new, and we don't expect them to be significant structural issues. President Biden just extended the student loan payment pause until 1 May'22. The Omicron variant has thrown a spanner in the works. But, we believe it only pushes back the restart of the repayment but is unlikely to be totally canceled. There is more than $1.6T of student debt outstanding, and the ramifications could be devastating. Notwithstanding, it's still a risk that we must highlight to readers.\nMoreover, therecent regulatory comments by FINRAand the SEC over restrictions to options trading could continue to affect sentiment around FinTech stocks like SoFi. Options trading has been very profitable for the market makers and brokerages like Robinhood (HOOD). Retail traders accounted for more than \"25% of total optionstrading activity\". Moreover, the average daily volume of total options contracts traded also rose 35% YoY to 39M, to the \"highest level ever.\" Since options trading comes with leverage, we believe that it's only prudent that regulators are evaluating the need to restrict the marketing of options trading. Investors who are not well-versed in options trading could have their portfolios decimated if their risk management was poor.\nHowever,SoFi has no exposure to options trading currently. Nevertheless, it might reduce the potential opportunity for SoFi if certain restrictions were implemented. However, there's no impact on its current estimates, and thus investors should not be unduly concerned. Therefore, any short-term headwinds or knee-jerk reaction to such concerns should be capitalized on by investors.\nSo, Is SOFI Stock A Buy Now?\n<img src=\"https://static.tigerbbs.com/7b3dcba281177d37e311accf244c9c19\" tg-width=\"1224\" tg-height=\"747\" width=\"100%\" height=\"auto\">SoFi adjusted revenue and adjusted EBITDA margins. Data source: S&amp;P Capital IQ\n<img src=\"https://static.tigerbbs.com/1dcec7448637c0257dd21f8abc415b9b\" tg-width=\"856\" tg-height=\"513\" width=\"100%\" height=\"auto\">SOFI stock EV/NTM Revenue.\nSoFi's adjusted revenue is estimated to increase at a CAGR of 44.6% over the next two years. Notably, its estimated adjusted EBITDA margin is expected to grow to 20.4% from just 2.8% in FY21 (SoFi guided for 3%). Therefore, we believe that investors might see tremendous revenue and bottom-line growth in the next two years if SoFi continues to execute its strategy well. Nevertheless, the tailwinds supporting the growth in its lending segment must continue to underpin the momentum in its financial services segment.\nMoreover, SoFi stock is trading at an EV/NTM Revenue of 9.1x. The stock has also been strongly supported whenever its revenue multiple fell to around 9.2x. In addition, its stock is also testing a key support level that attracted a series of insider purchases in August.\nTherefore,we reiterate our Buy rating on SOFI stock. We believe the tailwinds driving its lending and financial services business are multi-year. Coupled with a potential bank charter in the works, SoFi stock is still very early in exploiting its market opportunities. However, we believe it's suitable for speculative investors only due to its volatility. In addition, we also encourage investors to add in phases.","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Where Is SoFi Stock Headed In 2022?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhere Is SoFi Stock Headed In 2022?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-12-24 16:08 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4476606-where-is-sofi-stock-headed-2022>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nSoFi stock has been battered recently due to headwinds facing FinTech stocks in general.\nThe company is still in the early innings of its market opportunities. But, it already expects to ...\n\n<a href=\"https://seekingalpha.com/article/4476606-where-is-sofi-stock-headed-2022\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SOFI":"SoFi Technologies Inc."},"source_url":"https://seekingalpha.com/article/4476606-where-is-sofi-stock-headed-2022","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1153187365","content_text":"Summary\n\nSoFi stock has been battered recently due to headwinds facing FinTech stocks in general.\nThe company is still in the early innings of its market opportunities. But, it already expects to report adjusted EBITDA profits for FY21.\nWe discuss where SoFi stock is heading as we move towards 2022.\nI do much more than just articles at Ultimate Growth Investing: Members get access to model portfolios, regular updates, a chat room, and more.\n\nInvestment Thesis\nSoFi Technologies, Inc. (SOFI) is an emerging leader among new FinTech players who are keen to disrupt the legacy players with their members-focused strategy. SoFi believes that legacy players don't focus on maximizing the lifetime value of their customers. Instead, they are focused on their short-term profit goals. However, SoFi endeavors to build its business model around its members, helping them achieve their goals. Therefore, the company has developed a vertically integrated platform that serves its members seamlessly. Consequently, SoFi has consistently reported strong product and members growth over time, validating its strategy. CEO Anthony Noto reminds us of SoFi's mission (edited):\n\n Not only do we want to have a lifetime relationship with our members, but we want to be there for every major financial decision they have in their lives as well as all the days in between. And in order to do that, we need to help them get their money right. It means we have to help them borrow better, save better, spend better, protect better, invest better. (5th Annual Virtual Wells Fargo TMT Summit Conference)\n\nSOFI stock has also been battered in the recent retracement. Therefore, the stock is now back to its key support level, despite reporting solid FQ3 results. Therefore, we believe that the stock could make its move higher as we head into 2022. In addition, we discuss whether it's apt for investors to add exposure now.\nReaders new to SoFi canrefer to our previous article as a primer.\nSOFI Stock YTD Performance\nSOFI stock YTD performance (as of 22 December'21).\nReaders can quickly glean that SOFI stock's price volatility is not for the faint-hearted. The stock has seen at least three sharp upward momentum spikes throughout the year that sent the stock's YTD gains to 100% in February. However, the stock's mean-reversion tendencies continue to weigh on its upward momentum. Therefore, investors who added the stock at the highs might have suffered steep losses as the stock retraced. Moreover, its relatively high short percent of float at just under 10%throughout the year could also have contributed to its high volatility. Nevertheless, the stock has managed to keep itself within sight of the broad market leaders with a YTD gain of 20.5%.\nStrong Focus On Members Drive Consistent Product Growth\nSoFi average products per member. Data source: Company filings\nSofi average products per member by segment. Data source: Company filings\nSoFi has clearly driven strong product adoption across its growing member base that reached 2.94M members in FQ3. It also added 377K members, which, according to SoFi, was its second-highest quarterly increase. Notably, its strong member-focused business model also drove its average products per member, which reached 1.45 in FQ3. We can also observe the strong growth in financial services products per member as seen above. Its highly profitable lending segment serves as its funnel to grow its still nascent financial services segment. It's a critical segment to drive engagement due to the core products involved, such as savings, investments, and spending-related products. Some readers may observe that the average lending products per member seem to be dropping. However, we think there's no cause for concern here as the company listed eight financial services products compared to just three lending products. Moreover, the lending products are also highly specific for meeting members' needs. For example, if you are not a student, you wouldn't be taking up a student loan. However, its financial services products are designed for all its members. Therefore, we should focus on the traction of its financial services segment to evaluate the strength of the adoption of its products.\nMoreover, the company strongly believes that its \"vertically-integrated\" technology platform is its key competitive advantage. It allows the company to deliver a seamless onboarding experience across various product lines for its customers. SoFi believes that its platform advantage will continue to help it extend the rapid adoption of its products across its growing member base. Noto articulated (edited):\n\nAt a macro level, we have better technology.We have the ability to use data because it's not siloed.\n We're vertically integrated. For many banks, their core banking technologies are still on-premise. In many cases, they're still siloed, and therefore, that silos the data and also real-time decisioning. You can't get to that ease of use and that functionality, if you have different data architectures and you have different core technologies. And so we definitely benefit from our technology approach and our data architecture. (5th Annual Virtual Wells Fargo TMT Summit Conference)\n\nStrong Lending And Tech Segment Give SoFi Time To Build Up Its Financial Services Segment\nSoFi FQ1-FQ3'21 adjusted revenue and adjusted contribution profit by segment. Data source: Company filings\nSoFi adjusted contribution margin by segment. Data source: Company filings\nSoFi has consistently telegraphed that it operates in a market with a massive TAM. The lending market easily extends into trillions of dollars. Therefore, the company believes that its lending opportunities are still in the early innings. Notably, it already operates a solidly profitable lending and technology segment, as we can observe above. Its lending segment continues to be its key revenue driver in 2021, and it has been growing rapidly. Notably, it's also highly profitable, as SoFi reported an adjusted contribution margin of 54.6% in FQ3'21. Its contribution margin has also remained consistent throughout the year, despite the headwinds faced in the student loans market. Therefore, we are confident that SoFi's diversified loans portfolio can sustain its lending segment. Importantly, it gives SoFi time and flexibility to expand its financial services segment that is still incurring significant losses. However, the company sees a \"500M FDIC accounts\" opportunity ready for disruption.\nSoFi adjusted EBITDA margins. Data source: Company filings\nThe company focuses on what it calls a \"higher-end demographic, with a household income of above $100K.\" Therefore, it targets higher-quality members that it believes can significantly contribute to its product adoptions and revenue growth. Moreover, the company believes that it's on track to hit its 10M members target by focusing on its \"best-in-class\" products. Noto emphasized (edited):\n\n \"\n I would be really disappointed if we didn't achieve our 5-year plan that we laid out and getting to 10 million membersat SoFi and obviously more products than that. We're challenging ourselves to build a best-in-class product across four big macros, fast, selection, content, and convenience. Now those are pretty common adjectives, and they may not sound differentiated. But within each one, there is a ton of differentiation.\"\n\nMoreover, we believe that the company is well-placed to build on its platform advantage in its fast-growing financial services segment. It can leverage its profitable lending segment despite incurring losses for now. Notably, the company has turned adjusted EBITDA profitable on a consolidated basis and is expected to maintain its profitability moving ahead.\nNevertheless, two key risks may continue to impinge on its stock momentum in the near term. However, these risks are not new, and we don't expect them to be significant structural issues. President Biden just extended the student loan payment pause until 1 May'22. The Omicron variant has thrown a spanner in the works. But, we believe it only pushes back the restart of the repayment but is unlikely to be totally canceled. There is more than $1.6T of student debt outstanding, and the ramifications could be devastating. Notwithstanding, it's still a risk that we must highlight to readers.\nMoreover, therecent regulatory comments by FINRAand the SEC over restrictions to options trading could continue to affect sentiment around FinTech stocks like SoFi. Options trading has been very profitable for the market makers and brokerages like Robinhood (HOOD). Retail traders accounted for more than \"25% of total optionstrading activity\". Moreover, the average daily volume of total options contracts traded also rose 35% YoY to 39M, to the \"highest level ever.\" Since options trading comes with leverage, we believe that it's only prudent that regulators are evaluating the need to restrict the marketing of options trading. Investors who are not well-versed in options trading could have their portfolios decimated if their risk management was poor.\nHowever,SoFi has no exposure to options trading currently. Nevertheless, it might reduce the potential opportunity for SoFi if certain restrictions were implemented. However, there's no impact on its current estimates, and thus investors should not be unduly concerned. Therefore, any short-term headwinds or knee-jerk reaction to such concerns should be capitalized on by investors.\nSo, Is SOFI Stock A Buy Now?\nSoFi adjusted revenue and adjusted EBITDA margins. Data source: S&P Capital IQ\nSOFI stock EV/NTM Revenue.\nSoFi's adjusted revenue is estimated to increase at a CAGR of 44.6% over the next two years. Notably, its estimated adjusted EBITDA margin is expected to grow to 20.4% from just 2.8% in FY21 (SoFi guided for 3%). Therefore, we believe that investors might see tremendous revenue and bottom-line growth in the next two years if SoFi continues to execute its strategy well. Nevertheless, the tailwinds supporting the growth in its lending segment must continue to underpin the momentum in its financial services segment.\nMoreover, SoFi stock is trading at an EV/NTM Revenue of 9.1x. The stock has also been strongly supported whenever its revenue multiple fell to around 9.2x. In addition, its stock is also testing a key support level that attracted a series of insider purchases in August.\nTherefore,we reiterate our Buy rating on SOFI stock. We believe the tailwinds driving its lending and financial services business are multi-year. Coupled with a potential bank charter in the works, SoFi stock is still very early in exploiting its market opportunities. However, we believe it's suitable for speculative investors only due to its volatility. In addition, we also encourage investors to add in phases.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":7101422,"gmtCreate":1640391204543,"gmtModify":1640391204576,"authorId":3567052123559984,"author":{"id":3567052123559984,"authorId":3567052123559984,"name":"YiiYii","avatar":"https://static.tigerbbs.com/bb10d436567743e0e60ba0933900bf20","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":698811026,"type":1,"supId":0,"prevId":0,"content":"[Cool]","text":"[Cool]","html":"[Cool]"}],"langContent":"CN"},{"id":698813480,"gmtCreate":1640336589086,"gmtModify":1640336589356,"author":{"id":"3582013951378523","authorId":"3582013951378523","name":"sh99","avatar":"https://static.tigerbbs.com/95985dfcd15851145b63b9903fdb5bfc","vip":1,"crmLevel":4,"crmLevelSwitch":0},"htmlText":"dh","listText":"dh","text":"dh","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/698813480","repostId":1153187365,"repostType":4,"repost":{"id":"1153187365","pubTimestamp":1640333284,"share":"https://www.laohu8.com/m/news/1153187365?lang=&edition=full","pubTime":"2021-12-24 16:08","market":"us","language":"en","title":"Where Is SoFi Stock Headed In 2022?","url":"https://stock-news.laohu8.com/highlight/detail?id=1153187365","media":"seekingalpha","summary":"Summary\n\nSoFi stock has been battered recently due to headwinds facing FinTech stocks in general.\nTh","content":"Summary\n<ul>\n <li>SoFi stock has been battered recently due to headwinds facing FinTech stocks in general.</li>\n <li>The company is still in the early innings of its market opportunities. But, it already expects to report adjusted EBITDA profits for FY21.</li>\n <li>We discuss where SoFi stock is heading as we move towards 2022.</li>\n <li>I do much more than just articles at Ultimate Growth Investing: Members get access to model portfolios, regular updates, a chat room, and more.</li>\n</ul>\nInvestment Thesis\nSoFi Technologies, Inc. (SOFI) is an emerging leader among new FinTech players who are keen to disrupt the legacy players with their members-focused strategy. SoFi believes that legacy players don't focus on maximizing the lifetime value of their customers. Instead, they are focused on their short-term profit goals. However, SoFi endeavors to build its business model around its members, helping them achieve their goals. Therefore, the company has developed a vertically integrated platform that serves its members seamlessly. Consequently, SoFi has consistently reported strong product and members growth over time, validating its strategy. CEO Anthony Noto reminds us of SoFi's mission (edited):\n<blockquote>\n Not only do we want to have a lifetime relationship with our members, but we want to be there for every major financial decision they have in their lives as well as all the days in between. And in order to do that, we need to help them get their money right. It means we have to help them borrow better, save better, spend better, protect better, invest better. (5th Annual Virtual Wells Fargo TMT Summit Conference)\n</blockquote>\nSOFI stock has also been battered in the recent retracement. Therefore, the stock is now back to its key support level, despite reporting solid FQ3 results. Therefore, we believe that the stock could make its move higher as we head into 2022. In addition, we discuss whether it's apt for investors to add exposure now.\nReaders new to SoFi canrefer to our previous article as a primer.\nSOFI Stock YTD Performance\n<img src=\"https://static.tigerbbs.com/3f2e6bfa68f54e73825fdd1f8dcbbe0e\" tg-width=\"1485\" tg-height=\"720\" width=\"100%\" height=\"auto\">SOFI stock YTD performance (as of 22 December'21).\nReaders can quickly glean that SOFI stock's price volatility is not for the faint-hearted. The stock has seen at least three sharp upward momentum spikes throughout the year that sent the stock's YTD gains to 100% in February. However, the stock's mean-reversion tendencies continue to weigh on its upward momentum. Therefore, investors who added the stock at the highs might have suffered steep losses as the stock retraced. Moreover, its relatively&nbsp;high short percent of float at just under 10%throughout the year could also have contributed to its high volatility. Nevertheless, the stock has managed to keep itself within sight of the broad market leaders with a YTD gain of 20.5%.\nStrong Focus On Members Drive Consistent Product Growth\n<img src=\"https://static.tigerbbs.com/fa7169dadeb5216b68c06991fdaa12b3\" tg-width=\"1022\" tg-height=\"629\" width=\"100%\" height=\"auto\">SoFi average products per member. Data source: Company filings\n<img src=\"https://static.tigerbbs.com/eb1ec47ef6a47a426dd4a0479ddab86a\" tg-width=\"1222\" tg-height=\"739\" width=\"100%\" height=\"auto\">Sofi average products per member by segment. Data source: Company filings\nSoFi has clearly driven strong product adoption across its growing member base that reached 2.94M members in FQ3. It also added 377K members, which, according to SoFi, was its second-highest quarterly increase. Notably, its strong member-focused business model also drove its average products per member, which reached 1.45 in FQ3. We can also observe the strong growth in financial services products per member as seen above. Its highly profitable lending segment serves as its funnel to grow its still nascent financial services segment. It's a critical segment to drive engagement due to the core products involved, such as savings, investments, and spending-related products. Some readers may observe that the average lending products per member seem to be dropping. However, we think there's no cause for concern here as the company listed eight financial services products compared to just three lending products. Moreover, the lending products are also highly specific for meeting members' needs. For example, if you are not a student, you wouldn't be taking up a student loan. However, its financial services products are designed for all its members. Therefore, we should focus on the traction of its financial services segment to evaluate the strength of the adoption of its products.\nMoreover, the company strongly believes that its \"vertically-integrated\" technology platform is its key competitive advantage. It allows the company to deliver a seamless onboarding experience across various product lines for its customers. SoFi believes that its platform advantage will continue to help it extend the rapid adoption of its products across its growing member base. Noto articulated (edited):\n<blockquote>\n At a macro level, we have better technology.We have the ability to use data because it's not siloed.\n We're vertically integrated. For many banks, their core banking technologies are still on-premise. In many cases, they're still siloed, and therefore, that silos the data and also real-time decisioning. You can't get to that ease of use and that functionality, if you have different data architectures and you have different core technologies. And so we definitely benefit from our technology approach and our data architecture. (5th Annual Virtual Wells Fargo TMT Summit Conference)\n</blockquote>\nStrong Lending And Tech Segment Give SoFi Time To Build Up Its Financial Services Segment\n<img src=\"https://static.tigerbbs.com/c056c5d40607297814798de0f03d7b84\" tg-width=\"1231\" tg-height=\"744\" width=\"100%\" height=\"auto\">SoFi FQ1-FQ3'21 adjusted revenue and adjusted contribution profit by segment. Data source: Company filings\n<img src=\"https://static.tigerbbs.com/e1292224be26d73718a396ca582da342\" tg-width=\"1213\" tg-height=\"740\" width=\"100%\" height=\"auto\">SoFi adjusted contribution margin by segment. Data source: Company filings\nSoFi has consistently telegraphed that it operates in a market with a massive TAM. The lending market easily extends into trillions of dollars. Therefore, the company believes that its lending opportunities are still in the early innings. Notably, it already operates a solidly profitable lending and technology segment, as we can observe above. Its lending segment continues to be its key revenue driver in 2021, and it has been growing rapidly. Notably, it's also highly profitable, as SoFi reported an adjusted contribution margin of 54.6% in FQ3'21. Its contribution margin has also remained consistent throughout the year, despite the headwinds faced in the student loans market. Therefore, we are confident that SoFi's diversified loans portfolio can sustain its lending segment. Importantly, it gives SoFi time and flexibility to expand its financial services segment that is still incurring significant losses. However, the company sees a \"500M FDIC accounts\" opportunity ready for disruption.\n<img src=\"https://static.tigerbbs.com/849389677e66c8c24557d73422702951\" tg-width=\"1062\" tg-height=\"649\" width=\"100%\" height=\"auto\">SoFi adjusted EBITDA margins. Data source: Company filings\nThe company focuses on what it calls a \"higher-end demographic, with a household income of above $100K.\" Therefore, it targets higher-quality members that it believes can significantly contribute to its product adoptions and revenue growth. Moreover, the company believes that it's on track to hit its 10M members target by focusing on its \"best-in-class\" products. Noto emphasized (edited):\n<blockquote>\n \"\n I would be really disappointed if we didn't achieve our 5-year plan that we laid out and getting to 10 million membersat SoFi and obviously more products than that. We're challenging ourselves to build a best-in-class product across four big macros, fast, selection, content, and convenience. Now those are pretty common adjectives, and they may not sound differentiated. But within each one, there is a ton of differentiation.\"\n</blockquote>\nMoreover, we believe that the company is well-placed to build on its platform advantage in its fast-growing financial services segment. It can leverage its profitable lending segment despite incurring losses for now. Notably, the company has turned adjusted EBITDA profitable on a consolidated basis and is expected to maintain its profitability moving ahead.\nNevertheless, two key risks may continue to impinge on its stock momentum in the near term. However, these risks are not new, and we don't expect them to be significant structural issues. President Biden just extended the student loan payment pause until 1 May'22. The Omicron variant has thrown a spanner in the works. But, we believe it only pushes back the restart of the repayment but is unlikely to be totally canceled. There is more than $1.6T of student debt outstanding, and the ramifications could be devastating. Notwithstanding, it's still a risk that we must highlight to readers.\nMoreover, therecent regulatory comments by FINRAand the SEC over restrictions to options trading could continue to affect sentiment around FinTech stocks like SoFi. Options trading has been very profitable for the market makers and brokerages like Robinhood (HOOD). Retail traders accounted for more than \"25% of total optionstrading activity\". Moreover, the average daily volume of total options contracts traded also rose 35% YoY to 39M, to the \"highest level ever.\" Since options trading comes with leverage, we believe that it's only prudent that regulators are evaluating the need to restrict the marketing of options trading. Investors who are not well-versed in options trading could have their portfolios decimated if their risk management was poor.\nHowever,SoFi has no exposure to options trading currently. Nevertheless, it might reduce the potential opportunity for SoFi if certain restrictions were implemented. However, there's no impact on its current estimates, and thus investors should not be unduly concerned. Therefore, any short-term headwinds or knee-jerk reaction to such concerns should be capitalized on by investors.\nSo, Is SOFI Stock A Buy Now?\n<img src=\"https://static.tigerbbs.com/7b3dcba281177d37e311accf244c9c19\" tg-width=\"1224\" tg-height=\"747\" width=\"100%\" height=\"auto\">SoFi adjusted revenue and adjusted EBITDA margins. Data source: S&amp;P Capital IQ\n<img src=\"https://static.tigerbbs.com/1dcec7448637c0257dd21f8abc415b9b\" tg-width=\"856\" tg-height=\"513\" width=\"100%\" height=\"auto\">SOFI stock EV/NTM Revenue.\nSoFi's adjusted revenue is estimated to increase at a CAGR of 44.6% over the next two years. Notably, its estimated adjusted EBITDA margin is expected to grow to 20.4% from just 2.8% in FY21 (SoFi guided for 3%). Therefore, we believe that investors might see tremendous revenue and bottom-line growth in the next two years if SoFi continues to execute its strategy well. Nevertheless, the tailwinds supporting the growth in its lending segment must continue to underpin the momentum in its financial services segment.\nMoreover, SoFi stock is trading at an EV/NTM Revenue of 9.1x. The stock has also been strongly supported whenever its revenue multiple fell to around 9.2x. In addition, its stock is also testing a key support level that attracted a series of insider purchases in August.\nTherefore,we reiterate our Buy rating on SOFI stock. We believe the tailwinds driving its lending and financial services business are multi-year. Coupled with a potential bank charter in the works, SoFi stock is still very early in exploiting its market opportunities. However, we believe it's suitable for speculative investors only due to its volatility. In addition, we also encourage investors to add in phases.","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Where Is SoFi Stock Headed In 2022?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhere Is SoFi Stock Headed In 2022?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-12-24 16:08 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4476606-where-is-sofi-stock-headed-2022>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nSoFi stock has been battered recently due to headwinds facing FinTech stocks in general.\nThe company is still in the early innings of its market opportunities. But, it already expects to ...\n\n<a href=\"https://seekingalpha.com/article/4476606-where-is-sofi-stock-headed-2022\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SOFI":"SoFi Technologies Inc."},"source_url":"https://seekingalpha.com/article/4476606-where-is-sofi-stock-headed-2022","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1153187365","content_text":"Summary\n\nSoFi stock has been battered recently due to headwinds facing FinTech stocks in general.\nThe company is still in the early innings of its market opportunities. But, it already expects to report adjusted EBITDA profits for FY21.\nWe discuss where SoFi stock is heading as we move towards 2022.\nI do much more than just articles at Ultimate Growth Investing: Members get access to model portfolios, regular updates, a chat room, and more.\n\nInvestment Thesis\nSoFi Technologies, Inc. (SOFI) is an emerging leader among new FinTech players who are keen to disrupt the legacy players with their members-focused strategy. SoFi believes that legacy players don't focus on maximizing the lifetime value of their customers. Instead, they are focused on their short-term profit goals. However, SoFi endeavors to build its business model around its members, helping them achieve their goals. Therefore, the company has developed a vertically integrated platform that serves its members seamlessly. Consequently, SoFi has consistently reported strong product and members growth over time, validating its strategy. CEO Anthony Noto reminds us of SoFi's mission (edited):\n\n Not only do we want to have a lifetime relationship with our members, but we want to be there for every major financial decision they have in their lives as well as all the days in between. And in order to do that, we need to help them get their money right. It means we have to help them borrow better, save better, spend better, protect better, invest better. (5th Annual Virtual Wells Fargo TMT Summit Conference)\n\nSOFI stock has also been battered in the recent retracement. Therefore, the stock is now back to its key support level, despite reporting solid FQ3 results. Therefore, we believe that the stock could make its move higher as we head into 2022. In addition, we discuss whether it's apt for investors to add exposure now.\nReaders new to SoFi canrefer to our previous article as a primer.\nSOFI Stock YTD Performance\nSOFI stock YTD performance (as of 22 December'21).\nReaders can quickly glean that SOFI stock's price volatility is not for the faint-hearted. The stock has seen at least three sharp upward momentum spikes throughout the year that sent the stock's YTD gains to 100% in February. However, the stock's mean-reversion tendencies continue to weigh on its upward momentum. Therefore, investors who added the stock at the highs might have suffered steep losses as the stock retraced. Moreover, its relatively high short percent of float at just under 10%throughout the year could also have contributed to its high volatility. Nevertheless, the stock has managed to keep itself within sight of the broad market leaders with a YTD gain of 20.5%.\nStrong Focus On Members Drive Consistent Product Growth\nSoFi average products per member. Data source: Company filings\nSofi average products per member by segment. Data source: Company filings\nSoFi has clearly driven strong product adoption across its growing member base that reached 2.94M members in FQ3. It also added 377K members, which, according to SoFi, was its second-highest quarterly increase. Notably, its strong member-focused business model also drove its average products per member, which reached 1.45 in FQ3. We can also observe the strong growth in financial services products per member as seen above. Its highly profitable lending segment serves as its funnel to grow its still nascent financial services segment. It's a critical segment to drive engagement due to the core products involved, such as savings, investments, and spending-related products. Some readers may observe that the average lending products per member seem to be dropping. However, we think there's no cause for concern here as the company listed eight financial services products compared to just three lending products. Moreover, the lending products are also highly specific for meeting members' needs. For example, if you are not a student, you wouldn't be taking up a student loan. However, its financial services products are designed for all its members. Therefore, we should focus on the traction of its financial services segment to evaluate the strength of the adoption of its products.\nMoreover, the company strongly believes that its \"vertically-integrated\" technology platform is its key competitive advantage. It allows the company to deliver a seamless onboarding experience across various product lines for its customers. SoFi believes that its platform advantage will continue to help it extend the rapid adoption of its products across its growing member base. Noto articulated (edited):\n\nAt a macro level, we have better technology.We have the ability to use data because it's not siloed.\n We're vertically integrated. For many banks, their core banking technologies are still on-premise. In many cases, they're still siloed, and therefore, that silos the data and also real-time decisioning. You can't get to that ease of use and that functionality, if you have different data architectures and you have different core technologies. And so we definitely benefit from our technology approach and our data architecture. (5th Annual Virtual Wells Fargo TMT Summit Conference)\n\nStrong Lending And Tech Segment Give SoFi Time To Build Up Its Financial Services Segment\nSoFi FQ1-FQ3'21 adjusted revenue and adjusted contribution profit by segment. Data source: Company filings\nSoFi adjusted contribution margin by segment. Data source: Company filings\nSoFi has consistently telegraphed that it operates in a market with a massive TAM. The lending market easily extends into trillions of dollars. Therefore, the company believes that its lending opportunities are still in the early innings. Notably, it already operates a solidly profitable lending and technology segment, as we can observe above. Its lending segment continues to be its key revenue driver in 2021, and it has been growing rapidly. Notably, it's also highly profitable, as SoFi reported an adjusted contribution margin of 54.6% in FQ3'21. Its contribution margin has also remained consistent throughout the year, despite the headwinds faced in the student loans market. Therefore, we are confident that SoFi's diversified loans portfolio can sustain its lending segment. Importantly, it gives SoFi time and flexibility to expand its financial services segment that is still incurring significant losses. However, the company sees a \"500M FDIC accounts\" opportunity ready for disruption.\nSoFi adjusted EBITDA margins. Data source: Company filings\nThe company focuses on what it calls a \"higher-end demographic, with a household income of above $100K.\" Therefore, it targets higher-quality members that it believes can significantly contribute to its product adoptions and revenue growth. Moreover, the company believes that it's on track to hit its 10M members target by focusing on its \"best-in-class\" products. Noto emphasized (edited):\n\n \"\n I would be really disappointed if we didn't achieve our 5-year plan that we laid out and getting to 10 million membersat SoFi and obviously more products than that. We're challenging ourselves to build a best-in-class product across four big macros, fast, selection, content, and convenience. Now those are pretty common adjectives, and they may not sound differentiated. But within each one, there is a ton of differentiation.\"\n\nMoreover, we believe that the company is well-placed to build on its platform advantage in its fast-growing financial services segment. It can leverage its profitable lending segment despite incurring losses for now. Notably, the company has turned adjusted EBITDA profitable on a consolidated basis and is expected to maintain its profitability moving ahead.\nNevertheless, two key risks may continue to impinge on its stock momentum in the near term. However, these risks are not new, and we don't expect them to be significant structural issues. President Biden just extended the student loan payment pause until 1 May'22. The Omicron variant has thrown a spanner in the works. But, we believe it only pushes back the restart of the repayment but is unlikely to be totally canceled. There is more than $1.6T of student debt outstanding, and the ramifications could be devastating. Notwithstanding, it's still a risk that we must highlight to readers.\nMoreover, therecent regulatory comments by FINRAand the SEC over restrictions to options trading could continue to affect sentiment around FinTech stocks like SoFi. Options trading has been very profitable for the market makers and brokerages like Robinhood (HOOD). Retail traders accounted for more than \"25% of total optionstrading activity\". Moreover, the average daily volume of total options contracts traded also rose 35% YoY to 39M, to the \"highest level ever.\" Since options trading comes with leverage, we believe that it's only prudent that regulators are evaluating the need to restrict the marketing of options trading. Investors who are not well-versed in options trading could have their portfolios decimated if their risk management was poor.\nHowever,SoFi has no exposure to options trading currently. Nevertheless, it might reduce the potential opportunity for SoFi if certain restrictions were implemented. However, there's no impact on its current estimates, and thus investors should not be unduly concerned. Therefore, any short-term headwinds or knee-jerk reaction to such concerns should be capitalized on by investors.\nSo, Is SOFI Stock A Buy Now?\nSoFi adjusted revenue and adjusted EBITDA margins. Data source: S&P Capital IQ\nSOFI stock EV/NTM Revenue.\nSoFi's adjusted revenue is estimated to increase at a CAGR of 44.6% over the next two years. Notably, its estimated adjusted EBITDA margin is expected to grow to 20.4% from just 2.8% in FY21 (SoFi guided for 3%). Therefore, we believe that investors might see tremendous revenue and bottom-line growth in the next two years if SoFi continues to execute its strategy well. Nevertheless, the tailwinds supporting the growth in its lending segment must continue to underpin the momentum in its financial services segment.\nMoreover, SoFi stock is trading at an EV/NTM Revenue of 9.1x. The stock has also been strongly supported whenever its revenue multiple fell to around 9.2x. In addition, its stock is also testing a key support level that attracted a series of insider purchases in August.\nTherefore,we reiterate our Buy rating on SOFI stock. We believe the tailwinds driving its lending and financial services business are multi-year. Coupled with a potential bank charter in the works, SoFi stock is still very early in exploiting its market opportunities. However, we believe it's suitable for speculative investors only due to its volatility. In addition, we also encourage investors to add in phases.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":7098097,"gmtCreate":1640336595736,"gmtModify":1640336595763,"authorId":3582013951378523,"author":{"id":3582013951378523,"authorId":3582013951378523,"name":"sh99","avatar":"https://static.tigerbbs.com/95985dfcd15851145b63b9903fdb5bfc","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":698813480,"type":1,"supId":0,"prevId":0,"content":"yes","text":"yes","html":"yes"}],"langContent":"CN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":45,"commentSize":4,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}