Tuesday, June 29, 2021

Buying SoFi Technologies, Inc (SOFI) @ $22.58

 SoFi Technologies provides digital financial services, operating through three reportable segments: Lending, Financial Services and Technology platform.

SoFi allows it's members to borrow, save and invest. The company started out offering student loans.

SoFi operates Galileo - a technology platform that offers services to financial and non-financial institutions that currently serves 70 Million client accounts.

The Tailwind:

Fintech is an innovative industry that basically automates banking / financial decisions making the process more efficient, less labor intensive and enables better decision making with regards to making loans and calculating risk. SoFi is a leader in this industry with 2.28 million members, up 110% from a year ago.

- This is the 7th consecutive quarter where SoFi's growth rate has accelerated.

- Earnings are at $4 Million.

- Revenue at $1 Billion, 58% higher than last year.

- SoFi is now expanding into Auto Loans and Brokerage service for which they have recently acquired a banking licence. 

- CEO Anthony Noto, Ex CFO of Twitter and Goldman Sachs executive is very well experienced and seems to be doing a great job.

- Galileo platform is a strong business on it's own.

Why now?

With inflationary concerns being a major economic driver, Banks will be benefiting and this FinTech / Bank play fits my strategy of young, quality companies.

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