Should You Sell SoFi Stock Now as the Bears Get Stronger?

Core Insights - SoFi is a notable exception among SPAC IPOs, with its stock recently reaching record highs above $30, three times its SPAC IPO price [1] - The company has outperformed market expectations, with a stock increase of 90% year-to-date in 2023 [2] Business Model - SoFi operates as a hybrid of a traditional bank and a fintech, benefiting from a banking charter that allows access to low-cost member deposits and reduces reliance on expensive wholesale borrowing [5] - The company has diversified its revenue streams, increasingly generating income from non-lending ventures, including cryptocurrency trading, which traditional banks typically avoid [6] - SoFi also originates loans for third parties, targeting customers who do not meet its credit standards, resulting in a high-margin, low-risk business model with annualized originations exceeding $9.5 billion and a revenue run rate over $500 million [7] Member Growth - The member count for SoFi has increased by 34% year-over-year to 11.7 million in Q2, representing a significant growth opportunity for cross-selling as the company continues to expand its product offerings [8]