This is a HUGE Buy Signal for SoFi Stock! 😲

Hey, welcome back subscribers to My World of Stocks. I In today's video, we're going to be talking about what I believe is some very bullish news for one of my absolute favorite fintech disruptors in the market in SoFi Technologies, ticker symbol SOFI. Now, uh what this really comes down to for me personally is I just love how bullish the CEO has been on his company and the stock. And a few reasons why I completely agree with him and why he's been buying and at current levels that I just see as being so attractive for SoFi, and I'm going to explain why in this video. Now, typically when a stock is crashing like SoFi has more recently, losing about half its entire value from the top, uh most executives would release maybe a generic PR statement. Maybe they go on CNBC, tell everyone that the underlying business is doing just fine, and then they just kind of ride it out while hoping for the best. But, that's not what the CEO, Anthony Noto, is actually doing right now. He's out there putting a ton of his own hard-earned money right where his mouth is, buying larger amounts of the stock than I've ever seen in its entire history this very year. Now, we have actually seen him do this before, buying stock, particularly back when the stock was trading just in the single digits only a couple years ago in 2024, uh if you can believe it. And yeah, actually trading in the single digits, which by the way, after buying so heavily, uh and arguing that the stock was insanely undervalued, which I argued myself too, well, the stock proceeded to skyrocket from those levels. At one point, it even reached the 30s range. And yeah, during that time when the stock was soaring, everything was looking great for SoFi, um we kind of started to pause some of some of our buying. You know, the business was on fire, late investors were scared of missing out, so they were driving up the price, and there was really no reason to kind of buy anymore, so Noto didn't purchase the CEO, he didn't purchase a single new share throughout all of 2025. And even I myself paused a lot of my buying too because of how much it had already risen and actually how much it was growing in my own portfolio and becoming a a bit overweight in terms of influence in my portfolio to be honest with you. Um and I'm sure Noto probably saw it a similar way. It wasn't that dirt cheap valuation and opportunity that we initially saw in the stock earlier on. It was just kind of fairly valued to us now and was simply worth holding on to for what's still to come in the future. But then the stock started crashing again this year and once again the CEO started scooping up shares. Only this time he wasn't buying at $6 a share, but rather he's been aggressively buying even all the way up to the $18 range, which by the way happens to be even higher than where the stock currently sits today. And not just that, but his purchase um [snorts] his purchases in total have been much bigger in size. In fact, throughout just the first half of this year, he's already spent more than double the amount that he spent over the past couple years combined at over $2.2 million so far in 2026. Well, here's just three simple reasons for why I completely agree with his aggressive buying and why I've been adding shares myself too at these levels after the recent crash. Uh reason number one has everything to do with the valuation and how the market is completely mispricing what SoFi actually is in my opinion. See, in the stock market you generally have two types of companies when it comes to the finance sector. On one side, you have your large traditional bank, credit, and insurance type of company stocks uh that make up the bulk of that sector. These are great value plays, they tend to be highly profitable, they have great margins, they can afford attractive dividends, and they trade for very cheap multiples. Hence why value investors and income dividend investors tend to like them so much. However, they're also a bit boring. They're already large in size with a legacy business that, you know, management doesn't really try to innovate much on. They rarely spend money on research and development, and therefore their growth rates are typically crawling along at a snail's pace. But then on the other side of it, you have your younger financial technology stocks, what we call FinTechs. Now, these are fast-moving, highly disruptive innovators. They spend heavily on R&D. They launch new products constantly, and they typically offer much higher growth at the cost of also much higher valuations. But, what if I told you that you could actually get many of the same benefits from both, but with a cheap valuation, too? Well, that's exactly what SoFi is. I I guess without the dividends that you get from the from the legacy players. But, this is really a FinTech here uh that's also secured their own official bank charter now, meaning that they hold their own users' deposits, capturing those lucrative bank margins by drastically lowering their cost of capital compared to almost every other pure FinTech player out there, even giving them a huge competitive advantage for it, too. Yet, they're also expanding like a high-growth tech stock. Last quarter, for example, in a single quarter, they added more than a million new members, up 35% and nearly 15 million in total. And despite the economy dealing with some of the worst macro headwinds, SoFi was still able to grow their sales by over 40% year over year, with even their lending revenue actually surging by 55% despite analysts panicking about high interest rates hurting demand. Even their home loan segment skyrocketed by 137%, too. But again, you get this with rising profits, as well. In fact, their net income more than doubled in size. It's only in the earliest of stages, but it's getting it's going to be getting much larger in the future. And when looking at the rule of 40, a metric for judging both profitability and growth, which is something that most financial institutions have always struggled with having both of those, well SoFi has actually exceeded 40% in practically every quarter that the company's been public at close to 5 years with the most recent reading even topping 70%, which is almost unheard of among competitors. Yeah, when you look at the valuation, SoFi actually trades over 34% cheaper on a PEG basis than the sector median. A sector that again is already super cheap to begin with. It's one of the cheapest out there because of all of those low growth legacy players. In fact, the average PEG of around one is already considered generally by the market a great value, but SoFi is even lower than that, dramatically lower despite way having way higher growth. And that to me doesn't make a whole lot of sense. There's really a disconnect there from where this stock trades and where it should be. Speaking of which, reason number two is the pure growth engine that SoFi has built up through constant innovation and smart acquisitions. Now, unlike banks that are happy to sit on their hands collecting interest on loans, SoFi has aggressively pushed the envelope, especially when it comes to AI and future-proofing their ecosystem. Just recently, they made one of my favorite moves in acquiring an AI investing company Composer. This is an AI agent that allows users to create, test, and execute custom investing strategies using just your natural language. You literally just type out what you want your portfolio to do and the AI can build a customized strategy and automate the stock trades based on your prompts. And you can even tap into community-built strategies if you don't want to make your own, too. Now, this fits perfectly into SoFi's overall mission of targeting young, active investors on mobile that want digital-first, tech-heavy solutions for their money. And it doesn't stop there, either. They're launching their own stablecoin, they're utilizing blockchain technologies to roll out international wire transfers, and they're launching a bunch of new digital products too to constantly offer more value to their growing user base. For instance, customers with a bank account might use SoFi's AI features to analyze their finances, while the bank's own AI can automatically detect a better SoFi credit card that fits their exact spending habits, getting them to adopt a second product seamlessly. And it pairs great too with what is called SoFi Coach, which is another new AI tool that they just launched to help members budget, lower their costs, and optimize their finances within the app. In my opinion, if they continue to upgrade Coach with more AI features down the road, that could potentially replace the need for financial advisors altogether, which is a giant market too. And I could really see that happening, at least for many people. Plus, for SoFi, and a lot of people don't even know this by the way, but they've expanded well beyond just the consumer app, too. For example, one of the things that I'm most excited about myself as an investor in the stock is in how SoFi is almost becoming like the AWS of fintech through their back-end infrastructure acquisitions of Galileo and Technisys, where they basically own now much of the underlying technology and software platforms that other finance companies use to run their own apps. So, whenever a company wants to launch a new card or manage their users' money, well, they don't have to build it from scratch. They can just pay SoFi to use their own tech instead, thus acting almost like a toll booth, where SoFi gets a tiny cut behind the scenes every time a competitor's customer swipes a card or moves money around. It's just another brilliant move that adds to the overall diversity and strength of SoFi. Which brings me to my third and final reason, the the flywheel effect and the sheer scale of their total addressable market. Now, we've talked about their one-stop-shop strategy before on this channel, basically creating the only app that you'll ever need for anything related to your money, but I just want to mention that it is actually working better than ever right now. And it's the reason why I think that they'll be able to take such a big chunk of this giant market. As all their products start feeding each other, where you sign up for one thing, but really end up using multiple more products over time. And all the meanwhile, SoFi's customer acquisition costs plummet, where they really only need to acquire you once before the ecosystem gets you to use more products over time, and thus their growth verticals organically expand and their profits end up soaring. This is what we're already seeing in their business. Last quarter, for example, what they call their X buy rate jumped to 43%, meaning close to half of all their members are now using multiple SoFi products. And those members, by the way, have nearly tripled [snorts] in recent years. Same with their products, same with their margins, and same with user deposits, too. That one actually like quadrupled in size. And so, with that much capital pouring into their ecosystem, they're basically self-funding their own highly profitable loans. Now, they're cutting out the expensive middleman, and they're keeping all of that yield for themselves. This is how you tap into that multi-trillion-dollar global finance sector, where the growth for this company, a company that only did less than half of $1 billion in profits last year, um that growth is basically like endless at this point, um that is sitting in front of them. So, in summary, legacy banks have been getting away with a for a long time, getting away with charging ridiculous fees and offering terrible digital experiences for, I would say, like decades, really. And SoFi is now swooping in, they're taking their customers, they're offering a vastly superior digital-only product without the bloated overhead cost of running thousands of physical bank branches. And they're doing an incredible job of it. They were even named recently the number one bank in America by Forbes, beating out giant legacy institutions that that been around for over a century. And when you combine that rapidly expanding membership base, a sticky cross-selling ecosystem, and the gigantic market opportunity, you get a business here that in my opinion is built to generate strong growth for many years to come. What do you guys think? I'd love to hear your thoughts down below, and let me know if you agree or disagree with anything I said. But uh either way, I hope you enjoyed this quick little update on SoFi stock. It's usually a fun one to talk about, but um yeah, I've got more videos coming for you soon, so make sure you subscribe to stay tuned for those, and I will catch you guys in the next one. All right, take care, my friends. Bye-bye.