SoFi Technologies went public through a Chamath Palihapitiya-backed SPAC earlier this year, and like many other SPAC IPOs, it has taken a bit of a hit as the “SPAC mania” has died down. However…
in this Fool Live clip from a recent episode of “The Rank” (recorded on Sept. 20), Fool.com contributors Matt Frankel, CFP, and Jason Hall discuss why they ranked SoFi number one out of eight of their favorite fintech stocks.
Matt Frankel: A stock I own that I’ve invested quite a bit more in since it went public is SoFi ticker symbol, SOFI. This is short for Social Finance. This was a Chamath Palihapitiya SPAC, this is IPOE. SoFi started out as a relatively niche lender, we’ll call it. They started off as a private student lender. They branched out at the personal loans, mostly focused on loans for much of their history. They are just starting to branch out into financial services products.
I mentioned when we discussed Robinhood that SoFi does the stock trading thing better, in my opinion. They launched the stock trading platform that emphasizes investing. They try to build a community of investors who help each other and learn from each other. Really emphasize long-term holding. They have cryptocurrency trading, but they really tried to educate the investor a lot and that’s just one example. I’ll give to their products in a second. I’m going to share my screen for just one second to show you why SoFi is my number one. Let’s see if I can do that right. Can you see that, Jason?
Jason Hall: Yeah, it’s hilarious because I was literally going to hit share screen and show the same thing if you weren’t going to do it.
Frankel: Look, these are the SoFi members, 2.56 million members and the really key point to notice is that bottom bar year-over-year growth rate. Their growth is not only strong, but it’s accelerating. A lot of these growth companies you’re seeing growth start to decelerate a little bit now that the worst of the pandemic is coming out. All these tech companies got a huge boom during the stay at home economy. Especially financial companies they were doing the PPP loans, they were doing your stimulus checks people needed to move their money around and things like that. PayPal‘s revenue accelerated last year. You’re seeing SoFi’s revenue continued to accelerate. Going through there.
Another thing to point out with SoFi-Galileo, one of the most bullish things…
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