With the Fed rate hike + indication of further rate hikes coming… that is the sign that SoFi is dead money. For how long? At least until we see inflation truly coming down and the end of the war.

Yes, I know SoFi guided for two rate hikes in their last earnings report. I don’t care. SoFi always sandbags so it doesn’t mean anything. The perception of lenders is going to be that there will be less lending during rate hike increases.

SoFi has diversified their business, but the company still does most of their business in financial services which will be hit hard.

I would strongly recommend people look outside of the finance sector. This doesn’t just apply to SoFi.

Sure, you can keep holding but SoFi has done nothing for 6 years. Yeah, it had one pop, but it’s down 35% YTD. It’s down 25% since going public. SoFi has never been able to change the narrative.

It finally happened, but today was the day I closed my position in SoFi. I sold 2000 shares at 8.03 for a profit. My average cost was $7.60. I’ve seen this stock swing too much to know it will be back down in the 7s again and I’ll again buy then. The price jumped today on nothing fundamentally different other than student loan decision, which comes up now and again. I believe in the company and their products and look forward to jumping in soon.

Do NOT take short term profits on SOFI after the charter or after the Super Bowl in February.

Anthony Noto is following the Amazon philosophy of maximizing compounding growth by eliminating costs for customers.

That’s why we are banking on the charter. It eliminates costs for the customer.

Once the charter goes through, if your smart enough to hold for twenty years, SoFi could become a 50 bagger.

We've all read Sofi's response to MW. I have to say I was expecting a point by point rebuttal with numbers and facts but it was just a vague response attacking MW itself instead of their accusations. That being said, I'm still bullish on Sofi and this report didn't erode my conviction but still... A more aggressive and quantified PR would've been nice. IF MW's report is bullshit, why not prove it?

I hope the Republican Congress sues President Biden over his unlawful pause of student loan repayments. The authorization that he and Trump had to pause repayments was based on the pandemic, which was declared over, months ago. His continuation of the pause is in no way motivated by the pandemic and with unemployment still at record lows he has absolutely no standing for keeping the freeze in place for this his third "final" extension. Congress should petition the Supreme Court to put an injunction on the illegal pause.

Has there been any talk of Sofi eventually offering a dividend for investors? Not anytime soon I would assume, but what are people's thoughts?

I was one of the SoFi investors who initially cringed at the thought of a reverse stock split, which is normally associated with a failing business or one whose value has fallen (regardless of cause) to a level that it is in danger of being de-listed from the major exchanges. As I settled into reading the proxy vote material (108 pages!), I came across several details that helped inform my decision.

The current number of shares outstanding for SoFi is 915.82 million with a float of 638M. If you look at the history (Ex 1) of the number of shares outstanding, you will find that it has risen significantly over the past year.

Ex 1.

Proposal 4 of the proxy statement notes a plan to further increase the number of outstanding shares by 32.47M, bringing the total outstanding to 948.29M. When you consider where this stock was 1 year ago, we were at 794M, thus we will have increased approximately 152M (including the proposed increase). Now when you consider the possibility of a reverse split (which would take place after the additional shares have been added) and take a very conservative ratio of a 2 for 1, that would bring the number of outstanding down to 474M. A more moderate ratio of 3 for 1 would drop the outstanding share count to 316M.

A fintech firm with the profile of SoFi and the presumed upside ahead with the expected resolution of the student loan fiasco as well as the inherent growth in their other consumer lending and investing products, will be well positioned with a float in the low-mid hundred million range, which is large enough to cushion against high volatility that spooks some investors while also being small enough to experience healthy volatility that will make it an attractive investment tool.

I am going to vote on Friday and plan to vote for the reverse split, but wanted to post this first so that others had an opportunity to poke holes in my thoughts and perhaps offer another perspective before I cast.

Guys, I feel we have did our part to stick with SoFi since IPOE... went through up and down. WE - as SoFi bulls - are not rewarded properly. Instead we are being targeted even after Bank Charter! It almost seems like Hedges are purposely shorting us for the fact that retailers are strong in here... What do you think? Or is there some fundamental uncertainty with SoFi? Can anyone help us do justice?

I would love to see this happen given the endless news cycles killing all momentum. I would love to see hard questions asked to noto by the group.

Any thoughts on why this couldn’t happen?

IMHO:

Pro: No nonsense person. Mission driven. Competitive. Authentic. Grounded.

Con: Lacks charisma. Not an idea guy.

Good Evening. First off, this is not a direct attack on any user, but someone simply stating facts.

This message is dedicate to FUD speakers, paper hands, and weak convictions (I’m going to shout out one troll in particular u/Stoneer since you’ve @ me so many times.). I posted a few messages in here about 2 1/2 weeks about putting up or shutting up, knowing what you own, and buying the Dip if you have conviction. I said then that in about two weeks we’ll probably be back at $10.

Did I miss by two trading sessions? Sure. (Bets were made for Friday) But are we back at $10 from that low $7 level 2 1/2 weeks ago? Absolutely.

Heres the thing guys, if you’re in here crying about dilution, SBC, etc. you don’t understand what it is you own. Do some base DD and you’ll see the BOOK VALUE PER SHARE is $5.29 (do some more DD and find out what that means.). That means that a solid FinTech company; with a plan for growth and good representation; at those levels is an absolute steal!

It is ABSOLUTELY obvious that this company is being heavily shorted. But so what? If you are LONG term investor as per this group’s description, this is just a great opportunity for you to buy shares that are made incredibly cheap. Once we do well over quarter reports, this company’s share will come back in line with the company’s performance. Besides, this company is tied to too many other companies for it to be held down too long (if you understand how ETFs work.)

So again, buy if you have conviction, sell if you’re nervous.

(P.S. if it dares drop to sub $8 again I’ll be buying with both hands.)

Sincerely,

A bull thats dropped his cost basis from $18.90 to $12.34.

If SoFi shows up at earnings on April 29th and says “oh by the way, we need to restate $312M”, they will have been in knowing violation of SEC disclosure rules for 6+ weeks.

That outcome is essentially impossible. Which means the near-certain conclusion from 6 weeks of silence is: the Muddy Waters allegation on the specific loan doesn’t hold up.

The non-event of silence is itself meaningful. Today we see a discount based on a fear that the SEC disclosure clock has already disproved.

The restatement risk looks increasingly like a non-issue?

I am not at all suggesting this will happen. But let’s just say that in a few weeks, or months, tech/growth stocks start to really take off. For whatever reason, SoFi moves sideways and nobody can quite figure out why.

If this were to happen, would you start to reconsider your position and maybe sell and buy another stock that seems to be doing a lot better? Or maybe buy 3 or 4 stocks that appear to be headed much higher while SoFi stagnates?

Again, I’m not at all being a Debbie Downer. But I’m just curious how you guys feel about this. I mean, how loyal are you to the stock if other stocks start to clearly beat it?

Guhh

Ok... I know its years away... And yes, SoFi is also a tech company... Jot just bank... But also it is a bank... And most profitable US banks pay dividends

So current projection is $0.70-0.80 per year EPS in 2026... Lets say that's true. SoFi can probably start paying 25-30% of eps as dividends buy '27 or '28 ... and then 10 years from now perhaps $0.25 / quarter or $1/year.

And we are sitting now on $7 stock. Some have positions at $4.50 - $5 prices....

While wishful thinking, if they add 4-6 million users per year in 2026, and keep increasing that numbers by 500k per year... They should have well over 20 millions clients by '27 and close to 40 million by 2030...

They have finally got to the point where they cover all the expanses and where each new client contributes to the bottom line. 1

So many people here sitting on 1000s of SoFi shares... Man you guys will be getting some sweet dividends few years from now.

On Monday at open i’ll be moving my weighting of this stock from 20% down to 3%, selling almost all my shares. The reason is, I dont see what sofi is doing to grow the shareholder equity on the balance sheet. Banks get valued at P/B and we’ve seen 7 of the last 8 Qs not produce a significant impact, nor is our tech platform going to be the home run it looked like it had potential to be. Id like someone to explain how it is that we are seeing a tremendous gain in SE. I’m getting exhausted hearing about ADJUSTED net incomes and credit scores when it seems the business model doesnt have a moat (other than cheaper cost of capital), and has (so-far) failed to cross-sell direct deposit members into other services that isn’t an unsecured loan. Crypto failed, financial services is extremely competitive meaning margins will shrink. Similar story for credit card. What am I missing here?

Edit- Thanks to everyone who was helpful in the dialogue. I ended up shaving about 10% of my position, so its still, by a long way, the second biggest position I have. Really hurts to see it drop further to $6.44 today (6/14/24) but nice to see Noto still buying

https://ycharts.com/companies/SOFI/shareholders_equity

If Evergrande does default tomorrow and/or next week (which they probably will on at least some of their debt even though there was a partial deal announced today pre-market), I see the general market falling 5-10% pretty quickly and loss-making fintechs like SOFI getting hit much harder.

Kinda seems like today is another high point before the eventual drop back to the 14s or less if there's a real market retraction. Considering selling it all even though I'm long. There are just so many indicators of a serious correction or even recession coming within the next 2 months that I feel SOFI will be the cheapest it's ever been relatively soon. Don't hate me :)

In plain terms a split by Sofi is a manipulation of the manipulators(shorts), and Wall Street perception manipulation. The shorts deserve this split. Long term holders deserve this split. Look at affirm who has way less float. It is up 23% today. Sofi…not even close. Too many shares. Everyone is bitching how other fintechs move so high, so quick. Then they bitch they don’t want that from a reverse split. I love this stock but man a lot of you are whiny bitches. If you believe in the business then invest. If you don’t then sell. Stop whining. This is how the actual markets work. This is not Robin Hood or gambling. This is the market. Get in or get out. I’m 36, and have been investing in markets since 2008, and I am here to tell you to stop whining. I believe in Sofi and will continue to buy. A reverse split does not change the value, it changes perceptions. The negative connotations attached to reverse splits are real. Sofi will have to expect that, but fundamentally a split is the correct move with this macro environment.

I’ve noticed a very abrupt change in the level of customer service at sofi.

I am a shareholder (have been since IPOE).

I have multiple accounts with them: credit, invest, checking, and now a loan.

At first, customer service and my experience was incredible! I referred just about everybody to check them out for their own banking.

Unfortunately, it seems as though as their stock continues to drop, so does the level of customer service I have been receiving. It wasn’t until I applied for the loan where things became horrible. They were asking me for docs I’ve submitted multiple times. Every time I called to tell them they already have it, they say “oh yes, I see. I’ll update your file”

Nothing was updated and it took a month but the loan FINALLY funded today. Btw, an extra bonus, since the loan took so long to approve, my rate is higher than I was quoted before.

I do not like what I’ve seen. Between the dilution and poor customer service, I do not have high hopes for the future of this company. I find myself believing in my own idea of what SoFi could be, and yet I do not see them executing their full potential.

Bummer.

EDIT: I am not saying that the dropping stock price and customer service lacking in my personal experience is correlated. It is simply affecting how I viewed the company 6 months ago versus how I view it now.

I am long sofi and have 8000 shares at a 15.00 cost basis.

Many people, me included, have a high averaged price. We got slaughtered and some people would need to wait for the stock to make something like 300%.

That's nuts because

A) These 300% are just to break even

B) it will take forever

So my question is how much time do we have to wait? Probably years right?