SoFi Technologies: No FOMO, Fundamentals Only
Summary
- SoFi Technologies' rapid revenue and member growth outpace the fintech sector, supported by a massive and expanding total addressable market.
- Valuation remains attractive, with a forward P/E ratio dropping to 25 by FY2027 and conservative scenarios projecting 15-18% annualized returns by 2033.
- SOFI's first-mover advantage and comparison to higher-valued peers like Revolut highlight further upside potential despite current market skepticism.
- Macro risks and high short interest exist, but strong fundamentals and bullish earnings revisions justify my continued 'Strong buy' rating.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of SOFI 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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