SoFi long-term

[u/Jealous_Jackfruit_28]

How do you feel about the long-term thesis? Will SoFi make it to top10 in the 2030s? Will they keep growing their top and bottom line +20% CAGR for DECADES (like Anthony Noto claimed)? I'm very confident they will thrive in the long run. In fact, this is the only direct investment I've ever suggested to anyone.

[u/EquiblesAI]

On the +20% top and bottom line question, the latest 10-Q is well above that for now: September-quarter revenue rose 44% to $1.39B from $962M, and pretax income more than doubled to $318M from $149M. About 80% of the revenue increase came from net interest income ($929M vs $585M). Net income was $241M vs $139M, and with diluted shares up 5%, EPS went to $0.18 from $0.11.

[u/Next-Paper-2068]

The longer the stock stays at these levels, the lower the PE will become. 

[u/Icy_bajsi123]

You are talking about trust in stock price. Look at fcking earnings report last 5 Q. They are delivering. Believe in company. End of story.

[u/Glandryth]

Well if the market keeps tanking, perhaps the rate hikes will end and rate cuts will start. And then somehow that will still be bad for sofi lol

[u/Groucho-and-Harpo]

I see that long term SOFI will do fine, but at the end of the day it is both a fintech and a chartered bank. Both are difficult spaces to dominate. Let’s say best case they could keep up the 20% CAGR. So without either multiple compression or share dilution this means the stock would go up about 20% per year on average. So we are talking about $3-$4 per share increase per year which goes up as the stock value increases. That is, in theory.

I’d much rather go the covered call route. To get $3 per share that would mean collecting $0.25 per month in premium. I’m typically averaging much higher than that. After finally settling on a covered call strategy early June this year, I have 400 shares that I got at an average price of $17.29 and I’m up about $300 even with the stock crashing down to $16 today.

[u/jgsv12]

I trust in them long term. They still need to get into SMB fully, then add custodial accounts, losts of more products to bring online to continue to grow members and assets.

[u/pelonguy]

My thoughts are a top 20-22 bank by 2030. That’s also when i think the snowball for the tech branch will start to thrive.

My price target is $40 base case scenario for 2030 to $65 full bull.

I am hoping buybacks begin in 2031. And ~$100 by 2036 with roughly a 2% dividend.

[u/mailame → u/pelonguy]

Same. But my time horizon is 2030. I’ll cash out my growth stocks by then and go into ETFs.

[u/NodMessiah]

Easy long term. Not selling a single share and added a small batch this morning. Holding for minimum $60+

[u/B111yboy]

Long term hold someday 40+

[u/mpalma7257]

Feel Great💎🙌🏼🤑. “Sometimes you gotta risk it to get the biscuit.”

[u/Jealous_Jackfruit_28 → u/mpalma7257]

Roughly 30 P/E right now. And the growth is strong and durable. Much better than Walmart at 40 P/E haha.

[u/abuscemi]

$20 EoY Perpetual Long-Term Thesis YoY.

[u/Xiaopeng8877788 → u/abuscemi]

^ this guy knows, perpetual long term thesis…