SoFi: A Stronger Business Than in 2022
I think SoFi is a much stronger company today than it was in 2022. It has grown its customer base, increased its revenue and become profitable. It also has several sources of income, including banking, lending, investing and financial technology.
The partnership with Mastercard and the launch of SoFiUSD could open up new opportunities in digital payments. Of course, this does not mean the stock cannot fall much further.
If the Fed starts raising interest rates again, or keeps them high for longer, growth stocks could face more pressure. In a bigger market correction, I think SoFi could retest the lows from April 2025, with $10 or even $8.60 as possible levels to watch.
But this time, we would be looking at a much bigger business than in 2022. If the company keeps growing and its financial results remain strong, a major drop in the share price could create an interesting long-term opportunity.
These are just my thoughts, not a prediction. I would rather wait for a better entry price than chase the stock higher. For me, the key is to watch the business, not just the share price.
