SoFi Technologies is growing much faster than PayPal, but that doesn't automatically make it the better investment.
SoFi Technologies is creating a competitive advantage through superior technology for financial services.
For every stock I consider buying, I evaluate the potential risks that could derail my investment.
SoFi continues underperforming the wider market, thanks to the slower GAAP EPS profitability and the elevated short interest of 18.6%. Despite so, we are maintaining our Buy rating, thanks to its discounted valuations, growing deposit base/members, and accelerated top/bottom line growth compared to its peers. This is on top of SOFI's intensified efforts in the Lending and Financial Services segment and the higher for longer interest rate environment.
SoFi's growing member base clearly signals its strong customer value proposition.