Hey Oliver, you know my investment philosophy - I follow institutional investors and invest in what they invest. Here's my take on SoFi.
Percent of Shares Held by Institutions is 38,5 (check here: https://www.nasdaq.com/market-activity/stocks/sofi/institutional-holdings). A little too low, if you ask me. I usually go for 80%+. This is not to say SoFi won't grow. It may grow. But if institutions aren't seeing a rosy picture, why should I?
One more thing that makes me uneasy is Sales (check here: https://www.nasdaq.com/market-activity/stocks/sofi/financials): For a total 2023 revenue of $2,9b, SoFi spends $2,1b on sales. Too much, I think. On the other hand, it doesn't appear to invest much in R&D so it keeps some of the revenue.
This doesn't contradict your thesis. By all means, invest in SoFi, if you're convinced the company has a bright future. SoFi's technical patterns aren't 100% convincing but it does appear to have completed a bottom. A good sign, which means SoFi can resume a long-term uptrend.
Hey Denis appreciate the comment and your insights too!
Understand re institutional investors, but that's just a different strategy that I don't personally look into much. How many smaller, growth companies have a 80% institutional ownership out of interest?
Agree but the R&D expenditure, but also I would argue the company is actually very innovative. They're essentially doing something nobody has done before.
And finally, I agree about the technicals. Unless there is a more widespread macro pull back, it does appear a "bottom" has been formed.
SoFi is very often traded pre-market, I'm certain there're lots of pros in the mix. If SoFi has their attention, something interesting must be going on. Let's wait and see.
Hey Oliver, you know my investment philosophy - I follow institutional investors and invest in what they invest. Here's my take on SoFi.
Percent of Shares Held by Institutions is 38,5 (check here: https://www.nasdaq.com/market-activity/stocks/sofi/institutional-holdings). A little too low, if you ask me. I usually go for 80%+. This is not to say SoFi won't grow. It may grow. But if institutions aren't seeing a rosy picture, why should I?
One more thing that makes me uneasy is Sales (check here: https://www.nasdaq.com/market-activity/stocks/sofi/financials): For a total 2023 revenue of $2,9b, SoFi spends $2,1b on sales. Too much, I think. On the other hand, it doesn't appear to invest much in R&D so it keeps some of the revenue.
This doesn't contradict your thesis. By all means, invest in SoFi, if you're convinced the company has a bright future. SoFi's technical patterns aren't 100% convincing but it does appear to have completed a bottom. A good sign, which means SoFi can resume a long-term uptrend.
Hey Denis appreciate the comment and your insights too!
Understand re institutional investors, but that's just a different strategy that I don't personally look into much. How many smaller, growth companies have a 80% institutional ownership out of interest?
Agree but the R&D expenditure, but also I would argue the company is actually very innovative. They're essentially doing something nobody has done before.
And finally, I agree about the technicals. Unless there is a more widespread macro pull back, it does appear a "bottom" has been formed.
Appreciate your insights!!
SoFi is very often traded pre-market, I'm certain there're lots of pros in the mix. If SoFi has their attention, something interesting must be going on. Let's wait and see.