TECHNICAL
FUNDEMENTAL
- The chart for SoFi Technologies indicates a sideways market with key support around $6.57 and resistance near $10.27.
- The declining trend line suggests bearish momentum.
- Current price action is near the lower support level, showing potential undervaluation.
- Volume profile shows more trading activity at higher price levels, implying resistance ahead.
FUNDEMENTAL
- Performance: SoFi's Q4 results were strong, with a notable increase in total net revenue and a shift to net income, surpassing market expectations.
- Growth Projections: The CFO predicts substantial growth for 2024, with the Financial Services business expected to grow by 75% and the Tech Platform segment by 20%.
- Product Uptake: Approximately 30% of product sales are from existing customers, indicating efficient marketing and potential for increased profitability without the need for additional customer acquisition costs.
- Stock Outlook: Given the company's trajectory and market positioning, the analysis suggests a 67% upside potential for SOFI stock over the next two years, supporting a "Buy" recommendation on the current price dip.
- Valuation: While SOFI’s forward non-GAAP P/E ratio appears high, long-term market undervaluation is suggested based on aggressive EPS growth forecasts.
- Risks: Valuation methods and the predicted rapid EPS growth could be flawed; high deposit and operating costs are concerns but expected to be offset by the company's tech and service advancements.
- Conclusion: The potential for significant stock appreciation is identified, with a reiterated "Buy" rating and a recommendation to take advantage of the current lower stock price.
Trade active:
The next few months are going to be very exciting. Everything is still looking great and I cant wait to see us beat earnings