SoFi CEO Just Bought More After 2 Big Acquisitions

Ladies and gentlemen, quick update. After our last SoFi video, we talked about how Anthony Notto purchased $250,000 of new stock in SoFi. But this time, we ended up seeing a pretty particular story. SoFi acquired two different businesses, which was the opposite of what Anthony Notto said he would do whenever he was buying stock. >> So, you know, if March 1st was last week, I would have been buying the stock. Now, that doesn't mean when March 1st gets here, I'd buy the stock because there are always factors that can cause me not to be able to buy the stock. You know, if we're looking at an acquisition, um even if it's not going to happen, it's like we're seriously considering an acquisition, I'm not going to go buy the stock. Like, I don't want to There's a saying that says when you when you skate on a pond, you guys are from Canada, it's cold. I'm sure you've skated on ponds. You you don't want to skate on the edges of the pond in the spring. Why? the ice is melting, it's softer and you could fall in. I always want to be in the middle of the pond when it comes to things like buying the stock or otherwise. So, one of the companies that SoFi acquired was Primary Bid, which we're pretty confident on because if you go to primarybid.com, it's the first thing you see on their website. Primary Bid Technologies has been acquired by SoFi Technologies, a US-listed financial services company. On May 8th is when this was announced. Then, we also saw an article from Sky News that the Fly ended up reporting on. SoFi Technologies agrees to take over most of Primary Bid. So Sofi Technologies is acquiring most of the assets of Primary Bid, ending the British Fintech independent operations while enabling a partial return of capital to its investors. They also said while the company's financial position remains healthy with many years of cash runway, this is viewed as an optimal outcome for shareholders given domestic market conditions. This is not the first time we've heard of Primary Bid. Back in October of 2024, SoFi actually did a partnership with them called DSP 2.0. 0 or direct share program 2.0. Anthonyotto back then had this to say. For decades, companies wanted to offer the opportunity to participate in their IPOs to their employees, partners, customers, and others who help them grow. Unfortunately, traditional DSPs often have high account minimum requirements, carry significant costs to the companies, or lack benefits to underwriters, limiting their appeal. SoFi now offers companies going public a turnkey 100% digital way to offer IPO shares to employees and other people who helped build their business and whomever else they want to direct those shares to. Whether it's to 10 people or 10,000 people, people can open an account from their smartphone within seconds, transfer money seamlessly, and stay informed throughout the IPO process with no cost or deposit requirements. You can immediately see why SoFi did this. Whether that's to force SoFi invest setups through Galileo customers or potentially big business banking or SoFi at work. There's a ton of cross cells now where SoFi is working with extremely large enterprises that might look to go public soon. And then they can also offer the actual SoFi bank as being a platform where customers can end up collecting those shares or potentially end up selling them or doing whatever they want with those shares that they've been given out. Now, who could those customers be? Past primary bid customers looked to be Aston Martin, Deliveroo, there were a bunch other, but these were very, very big companies. And there's been other very famous DSPs that have happened. Uber paying drivers to celebrate their IPO or Airbnb's direct share program for eligible hosts. These are very famous direct share programs to benefit the people who actually ended up helping their success. Now, I'm interested to see what other companies SoFi deals with. Obviously, it wasn't none, or else they wouldn't have bought the company. So, they definitely have seen some success doing this, but I'm interested to see how this is going to accelerate or what the margin expansion is going to happen if they're not paying out primary bid. And instead, all of that margin that they were paying out goes directly back into SoFi's pocket. The same way whenever they bought Galo, they didn't have to pay out to Galileo. It's all under their own stack. Now, I hate to say this because I honestly have not been talking about this a lot, but whenever you talk about the AWS of fintech, this definitely fits in well with owning the entire stack. Between helping companies set up a card program, helping them get employee benefits, big business banking, also offering tools for their IPO, there's an additional amount of services that SoFi can continue to close in on that completely surrounds a business and offers them everything they need in a one turnkey solution. Then that goes to the second acquisition that SoFi did, which was Composer Trade or just called Composer here. But instead of me explaining the basics of this company, I'll just let the actual founder explain it in this video. >> Hey, I'm Ben, the CEO of Composer. And today, we're launching AI for trading. 5 years ago, it hit me. The best traders think in strategies. If momentum is strong, when volatility spikes, then rotate into these assets. But executing that manually, you need to track every indicator, watch a dozen assets, and time each trade perfectly every single time. It's impossible. What I needed was a platform that could think of if then logic, monitor the markets, and execute trades for me automatically. An AI that understands trading strategies the way traders do. But that platform didn't exist, so we built it. Not alerts, news feeds, or stock tips, but an AI that understands strategies, builds them, back tests them, and executes them. Let me show you. I tell Composer AI a strategy in plain English and it composes the entire thing instantly. There it is fully built, back tested and ready to run. And from here on out, Composer monitors the market, spots the signals and executes the trades automatically. To make this possible, we had to own every layer. 5 years of building, our own brokerage, our own strategy language, our own execution infrastructure. Because real AI for trading isn't a wrapper on someone else's tools. It's an entire stack from idea to trade. So, if you're a trader who thinks in strategies, tell Composer AI your idea and let it build it for you. Browse thousands of curated strategies. Share your interests and receive trade ideas you've never thought of. Composer is AI for trading, where creativity meets the market. >> So, that's Composer, an AI tool for trading, which we've seen other versions of this posted via public.com or even Robin Hood is expected to release theirs very soon. But now, potentially, SoFi can start integrating one that has been building for years into their own stack. Whenever going through some of their investing materials, what I found was that there was a big difference between some of the simplistic things that they also offer and then very complex things for businesses and active traders. So, one of them was potentially just going through and saying, "Help me choose which industries to invest in or how to potentially create a strategy that rotates between blue chip companies and more volatile stocks depending on market conditions." Very simplistic, back-tested strategies that you could potentially say, "Okay, set me up for this and go forward." And then the amount of trades that end up getting placed via this AI agent could mean a lot of potential fees for something like SoFi if they're going to execute on way more trades in a day or month than the actual investor would have done. But then whenever I start looking at some of the other assets that they've been able to put out on their investing strategies, it looks to be able to get quite complex, which is also very exciting for a more active trader or potentially for corporate or business investing, which might also play into what SoFi is trying to offer a solution for all financial needs. Either way, it looks like SoFi is trying to stay on top and continue to hold up that ranking of being the number one platform for DIY investing, which could mean that a new investor that is looking for a new app, whether that's Robin Hood, Public, or SoFi, ends up finding these rankings, ends up seeing that they have the agent AI tools that they want and says, "Hey, every time I have a paycheck, put it in towards, you know, the mag seven names or something like this without having to pay the meers of an index fund that is tracking those investments. and instead this AI agent might be cheaper to do so. But no, this doesn't seem very new. Obviously, public has been doing this and Robin Hood's about to do this as well where you can end up writing in different strategies and then they'll execute based on crypto stocks or even option strategies. Both of these acquisitions should increase SoFi's overall feebased revenue. Last quarter, we ended up seeing a massive rise in overall lending. So that's what ended up bringing down feebased revenue mix. But overall feebased revenue just continued to grow quarter after quarter. But then we need to talk about Anthony's insider buys because obviously last time we spoke he ended up buying 5,870 shares at roughly $15.73. And that was great. That was on Friday. Then on Monday he bought another 15,500 shares at $16 a share. And then that just ends up getting people even more excited that he's back into this DCA mode. as long as the price is under who knows $20 or something like this. But overall, the CEO buying can only mean one thing. He believes that the stock is undervalued. And although he gets paid a large sum of money, and that's people's biggest critiques with his small purchases, small $250,000 purchases, is that a lot of his compensation comes in the form of SoFi shares. So, he's not going to be selling SoFi shares to then go buy SoFi shares in the open market. So, his actual compensation in cash per year is about $1 million. out of that $1 million in the last two days, he's already spent over half of it. And if you were to scroll even further back, he spent more than what his annual income is just on SoFi stock to buy back into a company that he already has hundreds of millions of dollars worth. So, while it might not be the biggest news for Anthony to buy, it's definitely not bad news. And purchases from a CEO or management is only a good sign. I remain pretty optimistic on SoFi and believe that they're going to continue to grow and compound over time, but a lot of where their actual stock is headed is dependent on rate hikes and the odds of that happening is continuing to climb. Ladies and gentlemen, if you like this sort of content, make sure you subscribe. But until next time, bye for