SoFi: Still Bullish, But I'm Not Thrilled With Certain Aspects (Rating Downgrade)
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SoFi has shown impressive growth in member count, net revenue, and adjusted EBITDA, indicating strong performance and future potential. However, the company's technological platform must succeed in Banking as a Service to be valued as a tech company. A recent deal with Blue Owl Capital Funds could reduce SoFi's reliance on holding loans and expand fee-based revenue.
March 04, 2025 | 2:15 pm
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SoFi's growth in members, revenue, and EBITDA is strong, but its tech platform's success in Banking as a Service is crucial for tech valuation. The Blue Owl deal may reduce loan reliance and boost fee revenue.
SoFi's impressive growth metrics indicate strong performance, but the company's valuation as a tech firm hinges on its success in Banking as a Service. The deal with Blue Owl Capital Funds is a strategic move to diversify revenue streams and reduce reliance on loan holdings, which could positively impact SoFi's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100