I Can't Stay Quiet on SoFi Stock Any Longer

Hey, welcome back subscribers. My name is Ali. This is my world of stocks. And hey, you know, my number one favorite fintech stock just went live with a giant partnership deal with Mastercard. And given how much the stock is actually down right now, I thought it would be a good time to not only share my thoughts on that, but also just run through my personal five most bullish reasons for why I'm still choosing to buy SoFi stock throughout this year in 2026. And again, one of those points includes this new Mastercard partnership that I think could actually be a real gamecher for their business and for the stock long term. So, you won't want to miss it. Hit that like button if you want uh if you want me to keep updating you on SoFi stock in the future and plenty of other stocks too. Make sure you subscribe for that. Um but let's go ahead and jump straight into this. Now, first up here, reason number one for buying me buying SoFi stock here today. It all has to do with just the sheer disconnect between how the market is pricing SoFi shares and what I feel that they should actually be worth. Guys, when I hunt for stocks to add to my portfolio, I specifically look for companies that the market just simply has no clue on how to properly value their business. And SoFi might be one of the best examples of this. Now, coming off the top, shares are currently down about half their entire value. And that's left their PEG ratio at only around 0.7, which is more than 30% cheaper than the sector median. Now, two things on that. First of all, a PEG factors in future growth, and a metric of anything less than one, it's already considered a fantastic deal for it. But more importantly, in this specific case in particular, um it's it's an even more incredible value because the finance sector as a whole is already one of the cheapest in the entire market. And the reason for that is because it includes all those old legacy banks that are rarely ever growing at more than just kind of like a low singledigit clip. and and thus they tend to carry some of the cheapest valuations because you know why are you going to buy them so much if they're not going to be experiencing a ton of growth. So they tend to command a low cost for them. But SoFi is a thin tech meaning they also carry tremendous growth like a technology stock not like a legacy finance one. So for them to not only be less than one on a PEG, again already an incredible value on its own, but it's also over 30% lower than that old legacy finance sector to begin with, which was already an incredibly uh uh cheap one uh to for starters. And that's something that I feel the market just for whatever reason just doesn't seem to be catching on to yet, at least when it comes to SoFi. But hey, you don't have to take my word for it. You can just look at the factual numbers for yourself. This brings us to reason number two, the incredible growth with also a national bank charter twist. Now, according to analyst estimates, SoFi revenue and EPS are projected to grow around 30% annually over the coming years. Now, that's a level of growth you will almost never see in a legacy bank. But like I said, there's even a bonus twist when it comes to SoFi because they're not just a tech company anymore. Uh they're not just a tech company, but they also have now their national bank charter, which adds to their profitability like a legacy bank. It's helping them expand on their bottom line, too. In fact, projected free cash flows are expected to to break well north of $2 billion by 2028. In other words, this is no longer the unprofitable spa from 5 years ago that, you know, was burning through like hundreds of millions of dollars of venture cap capital. rather SoFi has now delivered 11 consecutive quarters of profitability and they continue to break record highs. Again, a big driving force for this long-term is going to be that bank charter that really separates them from almost every other fintech on the market that have almost complete reliance and dependence on those big legacy banks to actually fund and originate their all of their loans. while those partner banks then get to, you know, take huge cuts from all the fees and interest income, which is one of the reasons why legacy banks are so profitable to begin with. Well, SoFi saw this issue coming years ago for for, you know, FinTech. So, they worked hard on acquiring a national bank charter for themselves back in 2022. This now allows them to use their own consumer deposits to fund their loans. And boy, have they taken deposits. Back in 2022, they had about $1.2 billion worth of them. But fast forward to today and that number has skyrocketed to over 46 billion. And because of it, around 93% of SoFi's total funding base now comes directly from those lowcost deposits. U that's a move that has now helped them save over $700 million per year in funding expenses compared to borrowing on the open market. And that right there is why their net interest margin is sitting at almost 6%. That's a level that traditional retail banks can only dream of. Usually it's like half that amount. So with SoFi, you get the incredible growth of a of a tech with the rising profitability now too that will eventually rival a legacy fin. But together you get a great, you know, putting the two together, a great fintech. Our reason number three though is that all of this wouldn't even be possible if it wasn't for their incredibly sticky, highly engaging consumer ecosystem where by offering that all-in-one finance experience app, consumers have been really motivated to save, borrow, insure, and even invest all in one buttery smooth online platform. And not to stick on the whole kind of bank charter point here for too long, but just so you know, that's another reason for why so many people have flocked over to SoFi, because by having zero brickandmortar overhead to worry about or third party fees to have to deal with, um, SoFi has actually been able to pass higher yields along to savers and better better rates along to borrowers, which is help helping attract more of them to the platform. And while other finance companies have to spend, you know, hundreds of dollars in marketing just to acquire one customer, acquire each customer just for a single product alone, uh, SoFi instead focuses on crossmarketing all of their different products on that same um, customer within the entire ecosystem. And it's working out fantastic. Last quarter, for example, we saw the sheer power of this flywheel in effect as total members surged to 15.8 8 million, growing 35% year-over-year, while total products grew by even more at 42% up to 24.4 million. Now, for context, this was also the very first time in the company's history that they actually added literally double the amount of new products compared to new members. And even more impressive was their cross buy rate which measures how many products are adopted by existing users which accelerated to an incredible 51% meaning that you know more than half of the products being open on SoFi today are being taken by people who are already active on the platform. This pushed their products per members uh to an all-time high of 1.54. And again, all of this engagement in my opinion is being driven by that just that kind of sheer high quality of their services. In fact, SoFi has already been ranked as the number one US bank for overall customer satisfaction and trust by Forbes, even beating out every single legacy giant out there. That's kind of embarrassing for them to be honest. How how you going to lose to to this new company here? You should have that stuff locked down if you've been around for decades. So many decades, right? And even JD Power also awarded um SoFi the uh number one for overall investor satisfaction as well. It's crazy that they're beating everybody on this. And those are just very high, I would say, proof of concept awards. That should really give you a good idea of how well SoFi is performing, even down to a consumer level, which is what really drives everything else from the bottom up. I would say that's like the foundation you need. And yet, we're not even done with my biggest reasons yet. Coming in at number four, this will be a quick one, but is just in the fact that their own CEO, I think it's a big deal, has been so active in buying back stock himself. This is something that I always want to see in any stock that I'm investing in. If you're the CEO, if if the company is actually as good and as strong as you say it is, then you too should be buying the stock as well. It shouldn't just be me, it should also be you. You're leading the company. You know how great they are. Don't tell me about how great everything is. if you don't even have the confidence to buy shares of your own company yourself that that you're in charge of that you're leading. Well, thankfully this is a CEO that to be honest I have a lot of respect for because he's doing exactly that. Whenever the stock falls he goes out and he buys shares illustrating that he actually does believe um that this is a company that is being undervalued here in the market at today's prices. In fact, this year alone, Anthony Nodto has already spent more than double the amount that he spent over the past couple years combined at over $2.2 million in purchases through the first half alone of 2026. Some of those purchases even breaking north of $18 a share. And on average, it's all above where the stock currently trades today. In other words, even at higher prices, SoFi's own CEO thought that shares were still undervalued. again even when they were higher than where they are today. They're even lower now. But lastly, my fifth and final point about SoFi is in just their relentless pace of product innovation and in how, you know, rather than sitting back and getting complacent, which I would argue that like all the legacy finance players have done, uh, SoFi just continues to push the boundaries so much so that they just kind of remain ahead. And I think that's going to continue long term. And I think we could just kind of very quickly highlight some of this by illust uh or illustrate this by looking at their expansion into artificial intelligence as well as the historic payments deal now with Mastercard. Now on the AI front, they recently launched SoFi Coach, which is the industry's very first generative AI smart financial guide. It connects to all of a members financial accounts. It analyzes their real-time spending habits. It monitors credit reports. And it just delivers all these like customized automated um financial um like reports and advice actually directly inside the app all within that robust ecosystem that we just talked about and helps them um improve their finances, helps them uh make all the right necessary moves. On top of that, they just acquired Composer to bring actual AI agents directly into the SoFi platform as well. Now, these aren't just basic chat bots that spit out generic tips. These things can actually build, back test, and automate entire trading strategies for the user, for the the trader, the investor in real time. And it's a pretty big deal. And just as big of a deal is that SoFi is now the first bank ever, the very first one to use their own stable coin to instantly settle payments on Mastercard's global network where historically merchants were reluctant to use any form of, you know, any any kind of crypto because they'd have to train staff, replace the card terminals, they'd have to, you know, change their accounting software. they have to deal with all kinds of wild price volatilities and regulations and and all kinds of things that you see happening in crypto. But instead, SoFi is using their own token called SoFi USD that is fully pegged to the US dollar and it's backed by cash helping them eliminate much of these hurdles and issues. So now every time someone uses a SoFi card like through through the Mastercard network, right? Like SoFi card uh it's got the little Mastercard stamp on it. every time they use that. Well, not only will SoFi be collecting processing fees, but because every token is backed by real cash sitting at the Fed, they also collect interest on that giant pile of money, too. With SoFi members already spending over $25 billion on their cards every single year, this instantly turns everyday card swipes into a high margin cash cow that other players aren't even taking advantage of. It's kind of crazy that like it takes SoFi to to to be the first one to do this like so many other things that they do. But anyway, it's just another great example of how, you know, when you pull back and you look at the entire like big picture, you can really see that. SoFi is this growth engine almost beast. I would say that I don't know the I I feel maybe the market is just too stuck in the past to to still to to fully appreciate everything that SoFi has done that is doing and that they will probably do in the future. And again, this is all just my personal opinion. So, as always, do your own research, extensive research, and make your own decisions. But for me, I just see a lot of real long-term value in this name. and it's why I continue to buy shares to this day. But what do you guys think? I'd love to hear your thoughts down below. Do you agree with me? Um, do you agree with my bullish points on SoFi? Or are you more pessimistic about where SoFi trades today and maybe what the future holds for them long term? Let me know your thoughts. I welcome all opinions, good, bad, anything. I'd love to hear from you down below and we can have a chat about it. But either way, I just hope that you enjoy this video. I've got more coming for you soon, so stay tuned. Uh, but I'll catch you guys in the next one. All right, take care, my friends. Bye-bye.