SoFi Technologies: Short Sellers Should Be Worried Going Into Earnings

SoFi Technologies: Short Sellers Should Be Worried Going Into Earnings

Summary

charter one bank personal loans

  • I discuss the implications of SOFI obtaining their banking charter as this allows SOFI to utilize deposits to fund loans, creating better margins.
  • The banking charter could open up new revenue streams through its Galileo platform.
  • SOFI raised guidance with the federal student loan moratorium still intact, it’s on track to be lifted in Q2 which will bring a large revenue stream back online.
  • I think SOFI is going to become a missed opportunity for many investors and I will not be one of them.
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As of 1/, million shares of SoFi Technologies (SOFI) are sold short, which correlates to 16.9% of the float being shorted. Shares of SOFI seem to have found a bottom, and I am wondering why short-sellers are not exiting this position? SOFI has built a one-stop consumer financial services company experiencing considerable internal and external growth through its Galileo platform. The signs indicate SOFI’s vertically integrated platform will generate increased future revenue and EBITDA trends. Unlike traditional banks, SOFI has built an integrated app delivering an ecosystem with one of the broadest product sets of financial products in the neobank space.

SOFI is set to report earnings on 3/1/22, conveniently 2 weeks after the Superbowl held at SOFI Stadium. I am shocked that shares of SOFI have dropped to the $ range, especially after the recently approved bank charter. While traditional finance has changed substantially, traditional banking hasn’t been disrupted as the big banks still operate in the same way. I think that’s going to change, and future banking clients will be drawn to a complete virtual banking system that is operated in the cloud. Read More