Should You Buy SoFi While It's Below $15?

Core Insights - SoFi Technologies has experienced significant stock price fluctuations, currently up 66% over the past year but still 47% below its all-time high, trading under $15 [1] - The company is recognized as a leading fintech, disrupting traditional banking with its all-digital banking app and modern financial products [2] Business Performance - SoFi has shown strong growth, reporting positive net income for five consecutive quarters, appealing particularly to young professionals [3] - Membership reached 10.1 million, a 34$0.15 [4] Revenue Segmentation - Lending remains the core business, contributing 51% of adjusted net revenue in Q4, but is sensitive to interest rate changes [5] - The diversification strategy includes financial services and a tech platform, which have shown strong growth and reduced reliance on lending [6] - Revenue and contribution profit by segment: - Lending: $418 million (18$246 million profit (9% growth) - Financial services: $257 million (84$115 million profit (358% growth) - Tech platform: $103 million (6$32 million profit (5% growth) [7] Market Position and Valuation - SoFi is evolving into a more stable banking entity, with higher growth potential compared to traditional banks [8] - The stock trades at a forward P/E ratio of 30, which is high for a bank but reasonable for a growth stock; its price-to-book ratio is 2.4, comparable to JPMorgan Chase's 2.2 [10] - The outlook for SoFi over the next five to ten years is positive, indicating potential for continued growth and stability [11]