SOFI Stock Selloff Presents Buying Opportunity Despite Strong Growth
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SOFI stock plunged 15% due to plans to raise $750M via convertible senior notes, but this selloff presents a buying opportunity as the company continues to show strong growth.
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SOFI demonstrated 34-35% revenue growth, positive adjusted EPS for the first time, and tripled adjusted EBITDA YoY in latest earnings.
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Balance sheet is solid with deposits growing faster than loans, indicating efficient funding costs and profitability ahead.
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SOFI is successfully expanding products and cross-selling to existing customers, key to becoming a one-stop-shop.
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Valuation very attractive after selloff with 2027 P/E of 12.12x despite nearly 18% expected revenue CAGR; risks are volatility and competition from giant banks.