SoFi: The Bear Case Sharpened

Dec. 08, 2022 12:03 PM ETSoFi Technologies, Inc. (SOFI)LC283 Comments
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IP Banking Research
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Summary

  • This is a bear thesis so some readers may prefer to look elsewhere.
  • SoFi is reaching for growth at the expense of risk management.
  • SoFi is now an unsecured personal lender and Mr. Market is valuing it accordingly. The other business lines are still mostly sub-scale.
  • The current growth trajectory is not sustainable due to capital constraints.
SoFi Technologies Acquires Technisys SA For $1.1 Billion

Justin Sullivan

SoFi Technologies (NASDAQ:SOFI) is one of retail investors' favorite stocks. On the face of it, I can see the attraction, SoFi is seen as a real potential disruptor in financial services. Investors can clearly visualize a user-friendly super app that provides all types of

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IP Banking Research profile picture
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Independent banking research focuses on financials, deep value, special situations, and financial arbitrage. Agnostic and apolitical approach for scouring the earth for durable and uncorrelated cashflows that work well in both inflationary and deflationary settings.See my tipranks profile below:https://www.tipranks.com/bloggers/ip-banking-researchTo benefit from independent insights and quality analysis from a banking insider - subscribe as a "real-time" follower above.

Disclosure: I/we have a beneficial long position in the shares of LC, SOFI, JPM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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