1-Star Price
INVESTOR
5-Star Price
INVESTOR
Economic Moat
INVESTOR
Capital Allocation
INVESTOR
No-moat-rated SoFi technologies reported solid second-quarter earnings as weak student loan origination was offset by personal loans and deposit growth that came in well above our expectations. SoFi’s net revenue grew 57% year over year and 9.7% from last quarter to $362.5 million. As we incorporate these results, we do not expect to materially alter our $15 fair value estimate for SoFi.
SoFi is a financial services company that was founded in 2011 and is currently based in San Francisco. Initially known for its student loan refinancing business, the company has expanded its product offerings to include personal loans, credit cards, mortgages, investment accounts, banking services, and financial planning. The company intends to be a one-stop shop for its clients' finances and operates solely through its mobile app and website. Through its acquisition of Galileo in 2020 the company also offers payment and account services for debit cards and digital banking.
