Tevis: I'd Put My Entire Net Worth in This Stock

Let's rotate to another fintech that I believe you do have exposure to right now and that is SoFi. So, you mentioned that you're writing covered calls on about 20% of your shares right now at a 0.1 delta monthlies >> and you have a leaps position fully built out and no changes to your current share count. Um, successfully bought back your cash secured puts at 80% profit. SoFi. I mean, this feels like I is just in a weird position with SoFi. I feel like SoFi, I don't know if you follow sports and stuff, but like I feel like SoFi to me is like not a good comparison, like a Terry Judy or like uh someone on a team that's like, man, they were hyped up and they were they've had good moments and they've been okay, but overall a bit disappointing it feels like. And you keep getting your hopes up, you know, you keep seeing uh more internal purchases, right? uh from the CEO notto just just buying more stock and putting his salary into stock and at the end of the day it's just sitting there you know it started out the year it was trading at Jan 1 I believe that we were trading at about 26 and a half bucks it's trading at 17 now it's never given you know a huge drop since the beginning of the year just kind of traverse how do you look at the stock >> oh man okay so I'm going to I'm going to step in to to try to defend SoFi a little bit um SoFi is a company that I've been making content about for about 5 years now. It's one of the OG companies that I've consistently been following for that entire time. Okay. So, from a let's say history in my portfolio, SoFi is definitely the OG in in that whole portfolio. We have to really break apart here the stock with the company. The stock has underperformed heavily this year. Okay, nobody is doubting that. I'm not going to argue against that. The company on the other hand is firing on all cylinders, right? Like you have over 40% growth. You have the loan platform business which is knocking it out of the park. You now have the SoFi USD which they just recently launched. Big business banking launching in July. Like there are so many green shoots for this company and the only thing that and I posted about this recently. The thing that's hurting SoFi right now from a market perception point of view, it's not hurting them from a business point of view, don't get me wrong, right? >> Market perception is the rate environment. Okay, they had two to three rate cuts as baseline. Well, at the beginning of the year, that's what the Fed estimate was. Two to three rate cuts. Iran happened. all of this stuff, you know, and now like we're talking about having a rate hike from Worsh in in potentially July or September, right? >> Yeah. >> That narrative is detrimental because SoFi essentially trades in a basket with other financial services companies and financial services companies have gotten hurt across the board. Yeah, SoFi maybe has gotten hurt more disproportionately or or you know maybe a little bit more but at the same time this is a company that when we were expecting two to three rate cuts we were at all-time highs at 32 bucks right and now all of a sudden when management for the first time did not raise their guidance because and even that I think is bullish right because if you think about management like they have a history of always double beating and raising guidance and that's probably what you're going to get when they report earnings in a couple weeks. Q1 was the first time that they didn't raise their guidance. They maintained their guidance. Why? A lot of people took this to be very bullish. But why? Because their original guidance had two rate cuts baked in. Their current guidance has zero rate cuts baked in and they still maintained it regardless. SoFi can do well in any rate environment. They've proven that. They had a student loan moratorum, right? They had a high rate environment where personal loans really carried the water for the entire business. And now in a lower rate environment, you expect student loans and home loans to really do well. You expect the loan platform business to do well. And especially as they are back into crypto now, there's a lot of innovation that's happening on that front as well. So with Sofi, like I think the gap between the company and the stock, >> yeah, >> is massive. I think the company is misunderstood and misappreciated. And that's opportunity for for somebody like myself. So what did I do? You know, when Anthony was buying shares, I was buying LEAPS. And my position has been fully built up for a long time. My cost basis is in the single digits with SoFi. Like I said, I've been making content for SoFi since they uh spacked back in 2021 for my POE. And like I think is a is a great leader. I think he's a competitor. I think he wants to grow this company to be much larger. I mean, he said uh he shared his ambitions for this to be a top 10 financial institution. I think they can get there eventually and they're executing to get there. Like, you tell me another bank that's growing over 40% year-over-year, >> you know, and they're vertically integrated to some degree because they own the technology uh underlying like the the the actual rails the Galileo technicus put together. Many people see that tech platform as something that is a B2B side of their business. And yes, that's been the most disappointing side of SoFi's business. It hasn't held up on growth. But management has said, "Look, first and foremost, the SoFi consumer business is the number one customer of the technology platform." And only after that do we service and build for other customers. Because of the technology platform, they have unlocked vertical integration that helps in their margins, that helps in the actual rates and APYs that they offer and much more from a speed perspective from crypto, for example. Right? So there's so much I could ramble on about SoFi for all day. But the the point that I'm trying to make is that I could literally put my entire net worth into SoFi, go to sleep for 5 years, and feel no if ends or buts about it because I have confidence in the execution and the health of the underlying business regardless of what the stock does. Guess what? We're gonna get into a rate environment maybe in 2027 where we have rate cuts back on the table and sofa is going to go back to all-time highs. >> And like I know that to to be like I'm I'm the most secure in that and that's why I'm buying LEAPS, right? I'm buying LEAPS, $25 strike, $18 strike, $20 strike in 2028 because I know by 2028 we're going to turn this rate environment around. >> Wow. Yeah. So, let's take a look at the data for a second and then I do have a bit of a funny question on this one as well. But you talked about it really, really well there, the earnings continuously accelerating here, right, over time. And this is, you know, I just showed everyone on EPS for the last stock that we were looking at, but this is pretty cool to see, right? They've beaten revenue every single quarter for over four years straight here. You pull out the 10 uh last 20 quarters, they've beaten every single quarter. I mean, that's all the data that I have uh unfortunately inside of here. uh but literally they have not missed uh on revenue and they have not missed on EPS uh since Q2 of 2021. So that is four years straight of beats on revenue as well as on uh earning uh on EPS obviously we talked about the stocks down about 33% right now. They did see that pump I think when the moratorum came off right to go to alltime highs >> and then they also of course had you know the rate cuts and some of those pieces that you were mentioning there as well. They're estimating, they're going to report here in just 13 days, estimating over uh 1.1 billion dollars of revenue for that as well. So, there's definitely a lot to be excited about and look at there. I do want to ask one thing because I think it's a little funny. So, SoFi is not available in Canada right? >> No. Yeah. No, they're not. >> Would you uh would you use the app if they were available in Canada? >> I would absolutely use the app. I think there's a lot of benefits that uh an app like Sofa would provide. I've I've played around with it. Um I have you know friends in the states as well I visit all the time. So like um I'm familiar with with the app experience and some complaints that people have had also with the app historically the SoFi Invest experience but yeah like I think there's a lot of things that are not available in Canada right Robin Hood's not available in Canada and >> not yet >> just not yet exactly also you know one other thing on that that I want to mention don't forget because we have earnings coming up SoFi made three micro acquisitions at the beginning of this year right they have primary bid for IPOs they bought Peach and they bought uh Composer as well to bring that AI side into the invest experience. Like those are going to start to pay dividends as well in the not only in the UX but >> shout out to Composer former Wolf client >> actually. >> Yeah. >> Love that. Yeah. Like those are going to start to pay dividends as well like in the retail investing platform. Um, and it's ultimately going to lead to a higher level of cross-selling, and it's ultimately going to lead to a stickier member, and I think that growth is going to accelerate even further. So, we'll see what they