SoFi Now Faces the Ultimate Loyalty Test

Where do you stand? Investors are split over the future of this company... Here’s our take. [Derby City Daily logo]( [Derby City Daily logo]( May 1, 2024 [SoFi Now Faces the Ultimate Loyalty Test]( By Andy Swan Quick Note Before We Get Started: We’ve been telling you to check out Jonathan Rose's Masters in Trading Live segment for weeks now. A trade a day in less than 15 minutes? And for free ? For anyone trying to make money in this volatile market (and aren’t we all?) – Jonathan’s 11:00 a.m. show has become a must watch. The trades he’s shared there have delivered results like 35%, 51%, 179%, and 192%, often in a matter of days. All thanks to a unique trading strategy he’s been perfecting over the last 25 years. [On May 8]( you'll get an “insider’s” look at that very strategy if you attend the special event Jonathan just announced. [All you have to do is claim your seat here](. Now, let’s talk about SOFI... SoFi Technologies (SOFI) reported earnings before the bell Monday that beat expectations on nearly every level. But the market didn't like what it saw... SOFI Stock Price, Last 5 Days (TradingView) At first glance, it's a headscratcher. SoFi reported: ✓ Its second consecutive quarter of profit (2 cents a share bested the consensus $0.01) ✓ Quarterly net revenue of $645 million, up 37% year over year and far exceeding the expected $555.3 million ✓ Adjusted EBITDA of $144 million, growing 91% year over year ✓ 622,000 new member additions, bringing its total count to 8.1 million members – a 44% year-over-year gain ✓ Raised revenue guidance for the year, now expecting between $2.39 billion and $2.43 billion in FY'24 And yet... SOFI plunged more than 10%. What gives? We think the answer comes down to an even bigger question that investors are asking themselves right now: Is SoFi just another bank, or is it an actual [digital wallet play of the future]( RECOMMENDED LINK [The new financial threat that could wipe out millions...]( During the Internet boom, companies like Pets.com were supposed to be promising investments riding the wave of a new tech boom. But then they were gone within a blink of an eye. One of the most successful investors in history just stepped forward to say the same thing is about to happen to AI stocks. Many of today’s high-flying AI stocks are going to crash and burn like countless internet stocks did in 2000. (You may own some of these AI stocks right now.) [If you want to avoid the carnage, please pay close attention to this important video](. Choose Your Side Right now, SoFi's growth deceleration has investors wondering if it should really be labeled a "bank" and be valued as such. Raised guidance is typically a [“best-case” earnings scenario]( but in this case, it also sheds light on the stark slowdown in SoFi’s annual growth: Source: investors.sofi.com And as this X user points out, it’s this “rapid deceleration in growth” that’s raising red flags: The company's "uninspiring" call didn't help to quell fears about its growth prospects. And near term, it’s clear that even the "best quarter in the company's history" couldn't push its stock higher as Wall Street grows impatient. On the flip side, there are plenty of investors still in SoFi’s bullish camp – folks who are betting on the transformation of the company's target market expanding [beyond student loans](. [Folks like us who see SOFI as a winner in the future of banking](. RECOMMENDED LINK [[Urgent!] Live Trading Webinar on May 8]( On Wednesday, May 8, at 10 a.m., former Wall Street floor trader and market maker, Jonathan Rose, will reveal his #1 strategy for finding 100% gains in 30 days or less. [Click here to sign up now]( The Verdict Ultimately, only you can decide which side you stand on. As for us, [we’re still betting on SOFI]( becoming far more than just a bank and will treat these dips as opportunities to add shares. But we also acknowledge that the company needs to recover its user growth momentum and continue to execute on those users being more profitable than traditional banking customers. Two "loyalty" tests are happening in parallel: - Is the SoFi customer actually loyal enough to be highly profitable for the platform down the road? - And are SOFI shareholders loyal enough to take that bumpy ride to find out? Our consumer data remains strong for SOFI – mentions are surging as much as 81% year over year as I write this, while Consumer Happiness has gained four points to nearly 80%. We’ll be keeping a close eye on growth and the company's long-term vision from here. Until next time, [Andy Swan's signature] [Andy Swan's signature] Andy Swan Founder, LikeFolio P.S. I mentioned it earlier but this is worth a reminder: [Go here now]( to grab your seat for Jonathan Rose’s Masters in Trading Summit happening May 8. This guy is a legend. Nine out of 10 of his trade recommendations go up. [You’ll want a front-row seat](. Discover More Free Insights from Derby City Daily Here's what you may have missed from Derby City Daily this week... ✓ [What the Market Is Still Getting Wrong About Tesla (Watch Now)]( ✓ [Here’s Proof NVDA Is Just Getting Started]( ✓ [How Tesla’s Post-Earnings Surge Led to a 268% Profit in Two Days]( Get Instant Access Click to read these free reports and automatically sign up for research throughout the week. [The Infinite Income Manifesto]( [25 Doomed Blue Chip Stocks]( [5 Unapologetically Profitable Stocks for 2024]( © 2024 TradeSmith, LLC t/a Derby City Insights. All Rights Reserved. 1125 N. Charles Street, Baltimore, MD 21201 To unsubscribe or change your email preferences, please [click here](. [Terms of Use]( | [Privacy Policy](