JD88 personal page - To The Moon

JD88

No personal profile

5Follow

1Followers

0Topic

0Badge

04-27

another crap post

Sorry, the original content has been removed

04-16

$NIO Inc.(NIO)$ Add another 100 shares. Trust the company moving in the right direction. Focus on the company, not share price. Short term it can be hurt, be patient!

03-18

This is pure bull s!!

SoFi Technologies: Pessimism Is Justified

2023-10-16

You have no idea what are you talking.

Sorry, the original content has been removed

2023-07-25

Is analyst trap!!! Earning out sure drop!! Becareful!

BTIG Analyst Increases Price Target for Upstart Holdings Expresses ...

2023-07-19

who keep pumping this stock??

Sorry, the original content has been removed

2023-07-01

Trash analyst!

Sorry, the original content has been removed

2023-06-23

Totally manipulation. Analyst are bullshit.

Compass Point Initiates Coverage of SoFi Technologies at "Sell" With a Price Target of $5.00

2023-05-15

If you don't do your own due diligent, you may sell away your good stocks because of those manipulation clown!

Sorry, the original content has been removed

2023-05-15

Joke!

Sorry, the original content has been removed

2022-11-16

bullshit

Sorry, the original content has been removed

2022-06-21

bullshit

Sorry, the original content has been removed

2022-01-27

Great ariticle, would you like to share it?

@TigerEvents:Join Tiger Ski Championship, Win a Bonus of Up to USD 2022

2021-09-11

$Oatly Group AB(OTLY)$not bad

Go to Tiger App to see more news

{"i18n":{"language":"en_US"},"userPageInfo":{"id":3574241875611006,"uuid":"3574241875611006","gmtCreate":1611148891187,"gmtModify":1611148891187,"name":"JD88","pinyin":"jd88","introduction":"","introductionEn":"","signature":"","avatar":"https://static.laohu8.com/default-avatar.jpg","hat":"https://static.tigerbbs.com/0a8758340a08196056f8bc1e54805193","hatId":"ca_profile_frame_Lm11L6","hatName":"","vip":1,"status":2,"fanSize":1,"headSize":5,"tweetSize":16,"questionSize":0,"limitLevel":999,"accountStatus":4,"level":{"id":1,"name":"萌萌虎","nameTw":"萌萌虎","represent":"呱呱坠地","factor":"评论帖子3次或发布1条主帖（非转发）","iconColor":"3C9E83","bgColor":"A2F1D9"},"themeCounts":0,"badgeCounts":0,"badges":[],"moderator":false,"superModerator":false,"manageSymbols":null,"badgeLevel":null,"boolIsFan":false,"boolIsHead":false,"favoriteSize":0,"symbols":null,"coverImage":null,"realNameVerified":"success","userBadges":[{"badgeId":"1026c425416b44e0aac28c11a0848493-2","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Senior Tiger","description":"Join the tiger community for 1000 days","bigImgUrl":"https://static.tigerbbs.com/0063fb68ea29c9ae6858c58630e182d5","smallImgUrl":"https://static.tigerbbs.com/96c699a93be4214d4b49aea6a5a5d1a4","grayImgUrl":"https://static.tigerbbs.com/35b0e542a9ff77046ed69ef602bc105d","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.10.18","exceedPercentage":null,"individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1001},{"badgeId":"44212b71d0be4ec88898348dbe882e03-2","templateUuid":"44212b71d0be4ec88898348dbe882e03","name":"Executive Tiger","description":"The transaction amount of the securities account reaches $300,000","bigImgUrl":"https://static.tigerbbs.com/9d20b23f1b6335407f882bc5c2ad12c0","smallImgUrl":"https://static.tigerbbs.com/ada3b4533518ace8404a3f6dd192bd29","grayImgUrl":"https://static.tigerbbs.com/177f283ba21d1c077054dac07f88f3bd","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.07.14","exceedPercentage":"80.71%","individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1101},{"badgeId":"972123088c9646f7b6091ae0662215be-3","templateUuid":"972123088c9646f7b6091ae0662215be","name":"Legendary Trader","description":"Total number of securities or futures transactions reached 300","bigImgUrl":"https://static.tigerbbs.com/656db16598a0b8f21429e10d6c1cb033","smallImgUrl":"https://static.tigerbbs.com/03f10910d4dd9234f9b5702a3342193a","grayImgUrl":"https://static.tigerbbs.com/0c767e35268feb729d50d3fa9a386c5a","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":1,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2022.08.13","exceedPercentage":"93.74%","individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1100},{"badgeId":"7a9f168ff73447fe856ed6c938b61789-1","templateUuid":"7a9f168ff73447fe856ed6c938b61789","name":"Knowledgeable Investor","description":"Traded more than 10 stocks","bigImgUrl":"https://static.tigerbbs.com/e74cc24115c4fbae6154ec1b1041bf47","smallImgUrl":"https://static.tigerbbs.com/d48265cbfd97c57f9048db29f22227b0","grayImgUrl":"https://static.tigerbbs.com/76c6d6898b073c77e1c537ebe9ac1c57","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","exceedPercentage":null,"individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1102},{"badgeId":"a83d7582f45846ffbccbce770ce65d84-1","templateUuid":"a83d7582f45846ffbccbce770ce65d84","name":"Real Trader","description":"Completed a transaction","bigImgUrl":"https://static.tigerbbs.com/2e08a1cc2087a1de93402c2c290fa65b","smallImgUrl":"https://static.tigerbbs.com/4504a6397ce1137932d56e5f4ce27166","grayImgUrl":"https://static.tigerbbs.com/4b22c79415b4cd6e3d8ebc4a0fa32604","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","exceedPercentage":null,"individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1100}],"userBadgeCount":5,"currentWearingBadge":{"badgeId":"972123088c9646f7b6091ae0662215be-3","templateUuid":"972123088c9646f7b6091ae0662215be","name":"Legendary Trader","description":"Total number of securities or futures transactions reached 300","bigImgUrl":"https://static.tigerbbs.com/656db16598a0b8f21429e10d6c1cb033","smallImgUrl":"https://static.tigerbbs.com/03f10910d4dd9234f9b5702a3342193a","grayImgUrl":"https://static.tigerbbs.com/0c767e35268feb729d50d3fa9a386c5a","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":1,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2022.08.13","exceedPercentage":"93.22%","individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1100},"individualDisplayBadges":null,"crmLevel":7,"crmLevelSwitch":1,"location":null,"starInvestorFollowerNum":0,"starInvestorFlag":false,"starInvestorOrderShareNum":0,"subscribeStarInvestorNum":0,"ror":null,"winRationPercentage":null,"showRor":false,"investmentPhilosophy":null,"starInvestorSubscribeFlag":false},"baikeInfo":{},"tab":"post","tweets":[{"id":299554315997344,"gmtCreate":1714152801594,"gmtModify":1714153108626,"author":{"id":"3574241875611006","authorId":"3574241875611006","name":"JD88","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":7,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"another crap post","listText":"another crap post","text":"another crap post","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/299554315997344","repostId":"2430075522","repostType":2,"isVote":1,"tweetType":1,"viewCount":90,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":295686504526136,"gmtCreate":1713199015182,"gmtModify":1713199018505,"author":{"id":"3574241875611006","authorId":"3574241875611006","name":"JD88","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":7,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/NIO\">$NIO Inc.(NIO)$&nbsp;</a> Add another 100 shares. Trust the company moving in the right direction. Focus on the company, not share price. Short term it can be hurt, be patient!&nbsp;","listText":"<a href=\"https://ttm.financial/S/NIO\">$NIO Inc.(NIO)$&nbsp;</a> Add another 100 shares. Trust the company moving in the right direction. Focus on the company, not share price. Short term it can be hurt, be patient!&nbsp;","text":"$NIO Inc.(NIO)$ Add another 100 shares. Trust the company moving in the right direction. Focus on the company, not share price. Short term it can be hurt, be patient!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/295686504526136","isVote":1,"tweetType":1,"viewCount":270,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":285633092669592,"gmtCreate":1710769440558,"gmtModify":1710769444175,"author":{"id":"3574241875611006","authorId":"3574241875611006","name":"JD88","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":7,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"This is pure bull s!!&nbsp;","listText":"This is pure bull s!!&nbsp;","text":"This is pure bull s!!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/285633092669592","repostId":"1168982126","repostType":2,"repost":{"id":"1168982126","pubTimestamp":1710752254,"share":"https://www.laohu8.com/m/news/1168982126?lang=&edition=full","pubTime":"2024-03-18 16:57","market":"us","language":"en","title":"SoFi Technologies: Pessimism Is Justified","url":"https://stock-news.laohu8.com/highlight/detail?id=1168982126","media":"seekingalpha","summary":"SummaryThe potential decline in interest rates could negatively impact SoFi's net interest income.Consumers' weakening financial health may lead to higher delinquency rates and limit SOFI's future gro","content":"<html><head></head><body><h2 id=\"id_3855195556\" style=\"text-align: left;\">Summary</h2><ul style=\"\"><li><p>The potential decline in interest rates could negatively impact SoFi&#39;s net interest income.</p></li><li><p>Consumers&#39; weakening financial health may lead to higher delinquency rates and limit SOFI&#39;s future growth.</p></li><li><p>The company&#39;s valuation, in the current environment, is likely expensive.</p></li></ul><h2 id=\"id_3534563060\" style=\"text-align: left;\">Introduction</h2><p style=\"text-align: left;\">In my previous articles, I had a sell rating on SoFi Technologies. In both of the articles, my primary argument for a sell thesis was the potential macroeconomic headwind. At the time, I believed that the slowly declining consumers&#39; financial health could create a headwind for the company going forward. Today, I continue to stand by my reasoning from the previous articles. SoFi&#39;s stock has declined about 5% since the publication of my previous article compared to a 20% increase in the S&amp;P 500 during this time. Further, I believe the macroeconomic conditions have significantly worsened with initial signs of weakness in the market leading to the continuation of my negative view of the company. Thus, I believe my bearish case on SoFi strengthened in the past few months. Consumers&#39; financial conditions are weakening, which will likely affect SoFi&#39;s bottom line and also pressure the company to expand more conservatively. Finally, with the expectation of a declining federal funds rate in 2024, SoFi&#39;s net interest income, NII, could be negatively affected. Therefore, I am maintaining my sell thesis on SoFi.</p><h2 id=\"id_1359816226\" style=\"text-align: left;\">Declining Interest Rate</h2><p style=\"text-align: left;\">SoFi had a great calendar year in 2023. The company&#39;s top and bottom-line growth was extremely strong. In the 2023Q4 earnings report, SoFi reported a net interest income of $389.6 million which was up 87% from the prior-year period. The company was able to report such exceptional NII growth as a result of increasing interest rates on interest earnings assets by 3 basis points sequentially and 8 basis points year-over-year. Considering that the company&#39;s total revenue for the quarter was $615 million, I believe it is reasonable to say SoFi, being a fintech company, is heavily reliant on interest income.</p><p style=\"text-align: left;\">Unfortunately, SoFi&#39;s interest income could be challenged in 2024. During the last FOMC meeting of 2023 held in December, the Federal Reserve Chair Jerome Powell indicated that the organization may cut the federal funds rate 3 times in 2024 effectively lowering the market interest rate. Some economists including Goldman Sachs (GS) are expecting the Fed to cut rates by 5 times, which is far more aggressive than the Fed estimates.</p><p style=\"text-align: left;\">The lowering of the interest rate will likely impact SoFi&#39;s interest income on its loans as the interest rate on the loans declines. The magnitude of the impact will ultimately depend on the pace at which the Federal Reserve utilizes in lowering the federal funds rate, but as the market suggests, I believe it is highly likely that SoFi&#39;s net interest income to be pressured going into 2024.</p><p style=\"text-align: left;\">The initial example of the potentially lower interest rates impacting banks came from JPMorgan Chase (JPM) during their earnings call on January 12th. The company said that the &#34;lower interest rates will decrease NII&#34;. As such, it is highly likely for SoFi to see the impact of the macroeconomic conditions in 2024.</p><h2 id=\"id_1355741606\" style=\"text-align: left;\">Consumers&#39; Financial Health</h2><p style=\"text-align: left;\">On top of the potential headwind forming from the interest rate environment for SoFi, consumers&#39; weakening financial health will also likely pressure the company. Weakening financial health could not only increase the delinquency rates, but it could also pressure the company to be more conservative in its underwriting limiting future growth.</p><p style=\"text-align: left;\">As the chart below shows, according to the St. Louis Federal Reserve, delinquency rates on all consumer loans have continued to increase for the past several quarters. In the most recent quarter, 2023Q3, the loan delinquency rates reached 2.53%, which was 6.75% growth quarter-over-quarter. Beyond the delinquency rate that is higher than pre-pandemic levels, the rate at which the rate is continually increasing is alarming. From 2023Q1 to 2023Q2 and from 2022Q4 to 2023Q1, the delinquency rate rose 6.76% and 7.25% quarter-over-quarter, respectively, which means that there was no slowdown in the increase of the delinquency rate for the past few quarters. As such, with no meaningful slowdowns, it could be likely for the consumers&#39; financial health to worsen going forward.</p><p style=\"text-align: left;\"></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/e4a832a2451a1c9ce5ad72d6fbb90b6c\" alt=\"Consumer Loan Delinquency Rate Chart\" title=\"Consumer Loan Delinquency Rate Chart\" tg-width=\"640\" tg-height=\"243\"/><span>Consumer Loan Delinquency Rate Chart</span></p><p style=\"text-align: left;\"><strong>St. Louis Federal Reserve</strong></p><p style=\"text-align: left;\"></p><p style=\"text-align: left;\">In addition to the historical data provided by the Federal Reserve, JP Morgan&#39;s earnings report, as mentioned earlier, has hinted at continually increasing consumer delinquency rates. The company is expecting the charge-off rates to hit 3.5% compared to 2.79% in 2023.</p><p style=\"text-align: left;\">Overall, I believe it is likely for the consumers&#39; financial health to continue declining, and because the majority of SoFi&#39;s bottom line comes from its lending business, there will likely be a significant impact on SoFi&#39;s business if the consumers&#39; financial health continues to deteriorate.</p><h2 id=\"id_2434584353\" style=\"text-align: left;\">Management Team&#39;s View</h2><p style=\"text-align: left;\">SoFi reported a stellar 2023Q4 earnings report. Everything from top to bottom-line results were strong as the revenue grew 35% year-over-year and the company reached GAAP profitability on expanding margins. However, the continuation of these positive results is unlikely in 2024.</p><p style=\"text-align: left;\">In addition to my view of the macroeconomic conditions involving consumers&#39; financial health and the interest rate environment, SoFi&#39;s management team also provided a sour 2024 outlook. During the earnings call, the company&#39;s management team said that the company is &#34; taking a conservative and pragmatic approach toward [the] Lending segment revenue, expecting to largely maintain it, given our concerns about the 2024 macro environment as it relates to uncertainty on rates, the economy, and industry liquidity.&#34; As a result, SoFi is expecting &#34;the Lending segment revenue to be 92% to 95% of 2023 lending revenue,&#34; hinting at a decline in the company&#39;s highest margin business segment. In the fourth quarter, the lending segment&#39;s contribution profit was $226 million compared to the financial services and technology platform&#39;s $25 and $30 million, respectively. As such, the macroeconomic conditions are expected to have a profound effect on SoFi throughout 2024.</p><p style=\"text-align: left;\">One may argue that SoFi&#39;s diversification process could offset these macroeconomic risks in 2024. The management team said that financial services and technology platforms will drive growth in 2024 increasing the percentage of adjusted revenue to 50% from 38% in 2023. While diversification is certainly a positive factor in the long-term, I do not see this fully offsetting the slowdown and risks in the lending segment business as the profit margins on these segments, as of now, are significantly lower than lending segments. The lending segment&#39;s contribution profit to revenue margin was 65.25% compared to 23.58% for financial services and technology platforms. Therefore, I believe there are significant headwinds to SoFi&#39;s growth potential in 2024 due to macroeconomic conditions.</p><h2 id=\"id_631715272\" style=\"text-align: left;\">Valuation</h2><p style=\"text-align: left;\">Some investors bullish on SoFi&#39;s prospects may argue that the company&#39;s strong growth and expected profitability in 2024 and onwards constitute a bullish outlook along with a premium valuation. However, even when considering the company&#39;s past strong growth and expected profitability, I believe SoFi&#39;s valuation is too expensive today.</p><p style=\"text-align: left;\">The company, at the time of writing, has a market capitalization of $6.89 billion today with a 2024 forward price-to-earnings of 96.67. 2024 is the first year SoFi is expected to report profitability, so one may say that the price-to-earnings ratio is high. Thus, looking at 2025, SoFi has a forward price-to-earnings ratio of 27.78.</p><p style=\"text-align: left;\">For the current valuation to be reasonable where investors could expect a valuation appreciation, at the absolute minimum, 2025 forward price-to-earnings multiple should be undervalued leaving room for valuation appreciation throughout 2024. However, considering the current macroeconomic condition, I do not believe there is much upside potential at this level. Not only will bonds be more attractive even after 3 rate cuts at the target federal funds rate of 4.5 to 4.75%, but the macroeconomic conditions will weigh on the company&#39;s growth expectations. For example, the company&#39;s 2025 forward price-to-earnings ratio is 27.78, which means that the investors are paying 27.78 times the company&#39;s earnings for a single share. Not taking intensive growth into account, this means that the annual return an investor could expect on investment is about 3.6% (1/27.78) compared to the treasury bond return of about 4.5%. Investors pay a premium on the stock over bonds because of an upside potential justifying high valuation, but if the market environment does not allow this, I do not think a premium valuation should be rewarded as it is too risky. Therefore, it is likely that there are more risks than reward potential in SoFi&#39;s current valuation.</p><h2 id=\"id_3804928683\" style=\"text-align: left;\">Risk to Thesis</h2><p style=\"text-align: left;\">My bearish thesis relies on souring macroeconomic conditions. However, if it is the case that the macroeconomic conditions do not worsen in 2024, my thesis could be at risk. SoFi&#39;s management team, during the 2023Q4 earnings call, mentioned that their outlook is conservative. As such, if it is the case that the management&#39;s initial 2024 outlook is too conservative due to the economic slowdown&#39;s magnitude being shallow, my bearish thesis could be at risk</p><h2 id=\"id_2599730362\" style=\"text-align: left;\">Summary</h2><p style=\"text-align: left;\">Going into 2024, I believe the risks to reward potentially are unfavorable for SoFi as the macroeconomic risks are expected to create strong headwinds for the company. The Federal Reserve is expected to lower the federal funds rate likely pressuring the company&#39;s net interest income and margin. Further, as the consumers&#39; financial health continues to deteriorate, the company may experience higher levels of delinquency rates or be pressured to be more conservative in its loan underwriting. Finally, given the massive macroeconomic headwinds in the upcoming quarters, I believe the current valuation is too expensive. Therefore, SoFi is a sell.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>SoFi Technologies: Pessimism Is Justified</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSoFi Technologies: Pessimism Is Justified\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-03-18 16:57 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4678810-sofi-pessimism-is-justified><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryThe potential decline in interest rates could negatively impact SoFi's net interest income.Consumers' weakening financial health may lead to higher delinquency rates and limit SOFI's future ...</p>\n\n<a href=\"https://seekingalpha.com/article/4678810-sofi-pessimism-is-justified\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SOFI":"SoFi Technologies Inc."},"source_url":"https://seekingalpha.com/article/4678810-sofi-pessimism-is-justified","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1168982126","content_text":"SummaryThe potential decline in interest rates could negatively impact SoFi's net interest income.Consumers' weakening financial health may lead to higher delinquency rates and limit SOFI's future growth.The company's valuation, in the current environment, is likely expensive.IntroductionIn my previous articles, I had a sell rating on SoFi Technologies. In both of the articles, my primary argument for a sell thesis was the potential macroeconomic headwind. At the time, I believed that the slowly declining consumers' financial health could create a headwind for the company going forward. Today, I continue to stand by my reasoning from the previous articles. SoFi's stock has declined about 5% since the publication of my previous article compared to a 20% increase in the S&P 500 during this time. Further, I believe the macroeconomic conditions have significantly worsened with initial signs of weakness in the market leading to the continuation of my negative view of the company. Thus, I believe my bearish case on SoFi strengthened in the past few months. Consumers' financial conditions are weakening, which will likely affect SoFi's bottom line and also pressure the company to expand more conservatively. Finally, with the expectation of a declining federal funds rate in 2024, SoFi's net interest income, NII, could be negatively affected. Therefore, I am maintaining my sell thesis on SoFi.Declining Interest RateSoFi had a great calendar year in 2023. The company's top and bottom-line growth was extremely strong. In the 2023Q4 earnings report, SoFi reported a net interest income of $389.6 million which was up 87% from the prior-year period. The company was able to report such exceptional NII growth as a result of increasing interest rates on interest earnings assets by 3 basis points sequentially and 8 basis points year-over-year. Considering that the company's total revenue for the quarter was $615 million, I believe it is reasonable to say SoFi, being a fintech company, is heavily reliant on interest income.Unfortunately, SoFi's interest income could be challenged in 2024. During the last FOMC meeting of 2023 held in December, the Federal Reserve Chair Jerome Powell indicated that the organization may cut the federal funds rate 3 times in 2024 effectively lowering the market interest rate. Some economists including Goldman Sachs (GS) are expecting the Fed to cut rates by 5 times, which is far more aggressive than the Fed estimates.The lowering of the interest rate will likely impact SoFi's interest income on its loans as the interest rate on the loans declines. The magnitude of the impact will ultimately depend on the pace at which the Federal Reserve utilizes in lowering the federal funds rate, but as the market suggests, I believe it is highly likely that SoFi's net interest income to be pressured going into 2024.The initial example of the potentially lower interest rates impacting banks came from JPMorgan Chase (JPM) during their earnings call on January 12th. The company said that the \"lower interest rates will decrease NII\". As such, it is highly likely for SoFi to see the impact of the macroeconomic conditions in 2024.Consumers' Financial HealthOn top of the potential headwind forming from the interest rate environment for SoFi, consumers' weakening financial health will also likely pressure the company. Weakening financial health could not only increase the delinquency rates, but it could also pressure the company to be more conservative in its underwriting limiting future growth.As the chart below shows, according to the St. Louis Federal Reserve, delinquency rates on all consumer loans have continued to increase for the past several quarters. In the most recent quarter, 2023Q3, the loan delinquency rates reached 2.53%, which was 6.75% growth quarter-over-quarter. Beyond the delinquency rate that is higher than pre-pandemic levels, the rate at which the rate is continually increasing is alarming. From 2023Q1 to 2023Q2 and from 2022Q4 to 2023Q1, the delinquency rate rose 6.76% and 7.25% quarter-over-quarter, respectively, which means that there was no slowdown in the increase of the delinquency rate for the past few quarters. As such, with no meaningful slowdowns, it could be likely for the consumers' financial health to worsen going forward.Consumer Loan Delinquency Rate ChartSt. Louis Federal ReserveIn addition to the historical data provided by the Federal Reserve, JP Morgan's earnings report, as mentioned earlier, has hinted at continually increasing consumer delinquency rates. The company is expecting the charge-off rates to hit 3.5% compared to 2.79% in 2023.Overall, I believe it is likely for the consumers' financial health to continue declining, and because the majority of SoFi's bottom line comes from its lending business, there will likely be a significant impact on SoFi's business if the consumers' financial health continues to deteriorate.Management Team's ViewSoFi reported a stellar 2023Q4 earnings report. Everything from top to bottom-line results were strong as the revenue grew 35% year-over-year and the company reached GAAP profitability on expanding margins. However, the continuation of these positive results is unlikely in 2024.In addition to my view of the macroeconomic conditions involving consumers' financial health and the interest rate environment, SoFi's management team also provided a sour 2024 outlook. During the earnings call, the company's management team said that the company is \" taking a conservative and pragmatic approach toward [the] Lending segment revenue, expecting to largely maintain it, given our concerns about the 2024 macro environment as it relates to uncertainty on rates, the economy, and industry liquidity.\" As a result, SoFi is expecting \"the Lending segment revenue to be 92% to 95% of 2023 lending revenue,\" hinting at a decline in the company's highest margin business segment. In the fourth quarter, the lending segment's contribution profit was $226 million compared to the financial services and technology platform's $25 and $30 million, respectively. As such, the macroeconomic conditions are expected to have a profound effect on SoFi throughout 2024.One may argue that SoFi's diversification process could offset these macroeconomic risks in 2024. The management team said that financial services and technology platforms will drive growth in 2024 increasing the percentage of adjusted revenue to 50% from 38% in 2023. While diversification is certainly a positive factor in the long-term, I do not see this fully offsetting the slowdown and risks in the lending segment business as the profit margins on these segments, as of now, are significantly lower than lending segments. The lending segment's contribution profit to revenue margin was 65.25% compared to 23.58% for financial services and technology platforms. Therefore, I believe there are significant headwinds to SoFi's growth potential in 2024 due to macroeconomic conditions.ValuationSome investors bullish on SoFi's prospects may argue that the company's strong growth and expected profitability in 2024 and onwards constitute a bullish outlook along with a premium valuation. However, even when considering the company's past strong growth and expected profitability, I believe SoFi's valuation is too expensive today.The company, at the time of writing, has a market capitalization of $6.89 billion today with a 2024 forward price-to-earnings of 96.67. 2024 is the first year SoFi is expected to report profitability, so one may say that the price-to-earnings ratio is high. Thus, looking at 2025, SoFi has a forward price-to-earnings ratio of 27.78.For the current valuation to be reasonable where investors could expect a valuation appreciation, at the absolute minimum, 2025 forward price-to-earnings multiple should be undervalued leaving room for valuation appreciation throughout 2024. However, considering the current macroeconomic condition, I do not believe there is much upside potential at this level. Not only will bonds be more attractive even after 3 rate cuts at the target federal funds rate of 4.5 to 4.75%, but the macroeconomic conditions will weigh on the company's growth expectations. For example, the company's 2025 forward price-to-earnings ratio is 27.78, which means that the investors are paying 27.78 times the company's earnings for a single share. Not taking intensive growth into account, this means that the annual return an investor could expect on investment is about 3.6% (1/27.78) compared to the treasury bond return of about 4.5%. Investors pay a premium on the stock over bonds because of an upside potential justifying high valuation, but if the market environment does not allow this, I do not think a premium valuation should be rewarded as it is too risky. Therefore, it is likely that there are more risks than reward potential in SoFi's current valuation.Risk to ThesisMy bearish thesis relies on souring macroeconomic conditions. However, if it is the case that the macroeconomic conditions do not worsen in 2024, my thesis could be at risk. SoFi's management team, during the 2023Q4 earnings call, mentioned that their outlook is conservative. As such, if it is the case that the management's initial 2024 outlook is too conservative due to the economic slowdown's magnitude being shallow, my bearish thesis could be at riskSummaryGoing into 2024, I believe the risks to reward potentially are unfavorable for SoFi as the macroeconomic risks are expected to create strong headwinds for the company. The Federal Reserve is expected to lower the federal funds rate likely pressuring the company's net interest income and margin. Further, as the consumers' financial health continues to deteriorate, the company may experience higher levels of delinquency rates or be pressured to be more conservative in its loan underwriting. Finally, given the massive macroeconomic headwinds in the upcoming quarters, I believe the current valuation is too expensive. Therefore, SoFi is a sell.","news_type":1},"isVote":1,"tweetType":1,"viewCount":62,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":231160089895112,"gmtCreate":1697470046340,"gmtModify":1697470052263,"author":{"id":"3574241875611006","authorId":"3574241875611006","name":"JD88","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":7,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"You have no idea what are you talking.&nbsp;","listText":"You have no idea what are you talking.&nbsp;","text":"You have no idea what are you talking.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/231160089895112","repostId":"2375795789","repostType":2,"isVote":1,"tweetType":1,"viewCount":178,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":201776078332088,"gmtCreate":1690298187508,"gmtModify":1690298191591,"author":{"id":"3574241875611006","authorId":"3574241875611006","name":"JD88","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":7,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"Is analyst trap!!! Earning out sure drop!! Becareful!&nbsp;","listText":"Is analyst trap!!! Earning out sure drop!! Becareful!&nbsp;","text":"Is analyst trap!!! Earning out sure drop!! Becareful!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/201776078332088","repostId":"2354315391","repostType":2,"repost":{"id":"2354315391","pubTimestamp":1690290169,"share":"https://www.laohu8.com/m/news/2354315391?lang=&edition=full","pubTime":"2023-07-25 21:02","market":"us","language":"en","title":"BTIG Analyst Increases Price Target for Upstart Holdings Expresses ...","url":"https://stock-news.laohu8.com/highlight/detail?id=2354315391","media":"Best Stocks","summary":"BTIG Analyst Increases Price Target for Upstart Holdings Expresses ...","content":"<div>\n<p>BTIG Analyst Increases Price Target for Upstart Holdings Expresses ...</p>\n\n<a href=\"https://news.google.com/rss/articles/CBMiRWh0dHBzOi8vYmVzdHN0b2Nrcy5jb20vYnRpZy1hbmFseXN0LWluY3JlYXNlcy1wcmljZS10YXJnZXQtZm9yLXVwc3RhL9IBAA?oc=5\">Web Link</a>\n\n</div>\n","source":"redbox_crawler","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>BTIG Analyst Increases Price Target for Upstart Holdings Expresses ...</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBTIG Analyst Increases Price Target for Upstart Holdings Expresses ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-07-25 21:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://news.google.com/rss/articles/CBMiRWh0dHBzOi8vYmVzdHN0b2Nrcy5jb20vYnRpZy1hbmFseXN0LWluY3JlYXNlcy1wcmljZS10YXJnZXQtZm9yLXVwc3RhL9IBAA?oc=5><strong>Best Stocks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>BTIG Analyst Increases Price Target for Upstart Holdings Expresses ...</p>\n\n<a href=\"https://news.google.com/rss/articles/CBMiRWh0dHBzOi8vYmVzdHN0b2Nrcy5jb20vYnRpZy1hbmFseXN0LWluY3JlYXNlcy1wcmljZS10YXJnZXQtZm9yLXVwc3RhL9IBAA?oc=5\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4532":"文艺复兴科技持仓","UPST":"Upstart Holdings, Inc.","BK4585":"ETF&股票定投概念","LU1244550577.SGD":"FTIF - Franklin Global Multi-Asset Income A (Mdis) SGD-H1","BK4533":"AQR资本管理(全球第二大对冲基金)","LU1244550494.USD":"FRANKLIN GLOBAL MULTI-ASSET INCOME \"A\" (USDHEDGED) ACC","BK4114":"综合货品商店","BK4166":"消费信贷","BK4588":"碎股","TGT":"塔吉特","LU0052756011.USD":"TEMPLETON GLOBAL BALANCED \"A\" (USD) INC","LU0823411888.USD":"法巴消费创新基金 Cap","BK4561":"索罗斯持仓","BK4155":"大卖场与超市","BK4504":"桥水持仓","LU1267930227.SGD":"TEMPLETON GLOBAL BALANCED \"AS\" (SGD) ACC A","LU0128525689.USD":"TEMPLETON GLOBAL BALANCED \"A\"(USD) ACC","LU1244550221.USD":"FRANKLIN GLOBAL MULTI-ASSET  INCOME \"A\" (USDHEDGED) INC (M)","LU0310800965.SGD":"FTIF - Templeton Global Balanced A Acc SGD"},"source_url":"https://news.google.com/rss/articles/CBMiRWh0dHBzOi8vYmVzdHN0b2Nrcy5jb20vYnRpZy1hbmFseXN0LWluY3JlYXNlcy1wcmljZS10YXJnZXQtZm9yLXVwc3RhL9IBAA?oc=5","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2354315391","content_text":"BTIG Analyst Increases Price Target for Upstart Holdings Expresses ...","news_type":1},"isVote":1,"tweetType":1,"viewCount":225,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":199316860072016,"gmtCreate":1689696579530,"gmtModify":1689696583486,"author":{"id":"3574241875611006","authorId":"3574241875611006","name":"JD88","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":7,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"who keep pumping this stock??","listText":"who keep pumping this stock??","text":"who keep pumping this stock??","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/199316860072016","repostId":"2352752062","repostType":2,"isVote":1,"tweetType":1,"viewCount":191,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":192973835268096,"gmtCreate":1688142369960,"gmtModify":1688142648606,"author":{"id":"3574241875611006","authorId":"3574241875611006","name":"JD88","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":7,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"Trash analyst!","listText":"Trash analyst!","text":"Trash analyst!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/192973835268096","repostId":"2348328334","repostType":2,"isVote":1,"tweetType":1,"viewCount":70,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":190460583751952,"gmtCreate":1687524690672,"gmtModify":1687525783764,"author":{"id":"3574241875611006","authorId":"3574241875611006","name":"JD88","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":7,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"Totally manipulation. Analyst are bullshit.&nbsp;","listText":"Totally manipulation. Analyst are bullshit.&nbsp;","text":"Totally manipulation. Analyst are bullshit.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/190460583751952","repostId":"2345778715","repostType":2,"repost":{"id":"2345778715","pubTimestamp":1687523621,"share":"https://www.laohu8.com/m/news/2345778715?lang=&edition=full","pubTime":"2023-06-23 20:33","market":"us","language":"en","title":"Compass Point Initiates Coverage of SoFi Technologies at \"Sell\" With a Price Target of $5.00","url":"https://stock-news.laohu8.com/highlight/detail?id=2345778715","media":"Investing.com","summary":"Compass Point analyst Giuliano Bologna initiates coverage on SoFi Technologies ...(Premium-only article. Please sign in or upgrade to SI Premium to view.)","content":"<html><head></head><body><p>An analyst from Compass Point initiated coverage of SoFi Technologies (NASDAQ: SOFI) at &#39;sell&#39; with a price target of $5.00.</p><p style=\"text-align: left;\">Prior to this rating, SoFi Technologies had 6 buy ratings, 9 hold ratings, and 1 sell ratings.</p><p style=\"text-align: left;\">SoFi Technologies&#39;s stock price closed at $8.49. They are up 62.96% in the last month and up 46.89% in the last 12 months.</p><p style=\"text-align: left;\">According to Investing Pro, SoFi Technologies&#39;s fair value is $7.34, a downside of 13.50%. SoFi Technologies&#39;s fair value comes with a high degree of uncertainty.</p><p>SoFi Technologies shares fell over 5% in premarket trading.</p><p></p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/8c9445c9493095defd4b16590bc73e59\" title=\"\" tg-width=\"770\" tg-height=\"628\"/></p><p></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Compass Point Initiates Coverage of SoFi Technologies at \"Sell\" With a Price Target of $5.00</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCompass Point Initiates Coverage of SoFi Technologies at \"Sell\" With a Price Target of $5.00\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-06-23 20:33 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://in.investing.com/news/social-capital-hedosophia-v-receives-investment-bank-analyst-rating-update-3695959><strong>Investing.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>An analyst from Compass Point initiated coverage of SoFi Technologies (NASDAQ: SOFI) at 'sell' with a price target of $5.00.Prior to this rating, SoFi Technologies had 6 buy ratings, 9 hold ratings, ...</p>\n\n<a href=\"https://in.investing.com/news/social-capital-hedosophia-v-receives-investment-bank-analyst-rating-update-3695959\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://in.investing.com/news/social-capital-hedosophia-v-receives-investment-bank-analyst-rating-update-3695959","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2345778715","content_text":"An analyst from Compass Point initiated coverage of SoFi Technologies (NASDAQ: SOFI) at 'sell' with a price target of $5.00.Prior to this rating, SoFi Technologies had 6 buy ratings, 9 hold ratings, and 1 sell ratings.SoFi Technologies's stock price closed at $8.49. They are up 62.96% in the last month and up 46.89% in the last 12 months.According to Investing Pro, SoFi Technologies's fair value is $7.34, a downside of 13.50%. SoFi Technologies's fair value comes with a high degree of uncertainty.SoFi Technologies shares fell over 5% in premarket trading.","news_type":1},"isVote":1,"tweetType":1,"viewCount":261,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9970185755,"gmtCreate":1684160698877,"gmtModify":1684162622487,"author":{"id":"3574241875611006","authorId":"3574241875611006","name":"JD88","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":7,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"If you don't do your own due diligent, you may sell away your good stocks because of those manipulation clown!&nbsp;","listText":"If you don't do your own due diligent, you may sell away your good stocks because of those manipulation clown!&nbsp;","text":"If you don't do your own due diligent, you may sell away your good stocks because of those manipulation clown!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9970185755","repostId":"2335570895","repostType":2,"isVote":1,"tweetType":1,"viewCount":131,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9970116445,"gmtCreate":1684150790888,"gmtModify":1684150795539,"author":{"id":"3574241875611006","authorId":"3574241875611006","name":"JD88","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":7,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"Joke!","listText":"Joke!","text":"Joke!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9970116445","repostId":"1167853068","repostType":2,"isVote":1,"tweetType":1,"viewCount":103,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9963107876,"gmtCreate":1668610819895,"gmtModify":1676538084523,"author":{"id":"3574241875611006","authorId":"3574241875611006","name":"JD88","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":7,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"bullshit","listText":"bullshit","text":"bullshit","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9963107876","repostId":"2283926294","repostType":2,"isVote":1,"tweetType":1,"viewCount":180,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9049294450,"gmtCreate":1655796429970,"gmtModify":1676535707118,"author":{"id":"3574241875611006","authorId":"3574241875611006","name":"JD88","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":7,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"bullshit","listText":"bullshit","text":"bullshit","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9049294450","repostId":"1149288828","repostType":2,"isVote":1,"tweetType":1,"viewCount":150,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9099033288,"gmtCreate":1643276382843,"gmtModify":1676533794478,"author":{"id":"3574241875611006","authorId":"3574241875611006","name":"JD88","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":7,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9099033288","repostId":"9004448317","repostType":1,"repost":{"id":9004448317,"gmtCreate":1642676525258,"gmtModify":1676533734534,"author":{"id":"3527667667103859","authorId":"3527667667103859","name":"TigerEvents","avatar":"https://community-static.tradeup.com/news/c266ef25181ace18bec1262357bbe1a8","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"title":"Join Tiger Ski Championship, Win a Bonus of Up to USD 2022","htmlText":"2022 is the Year of Tiger in Chinese lunar calendar, it’s also a special year for Tiger Brokers. To celebrate the special year, we want to invite you to join the ski game presented by Tiger Brokers specially, and it’s very easy and interesting game for users to play. Join the game and win a bonus of up to USD 2022 and limited-edition Tiger Toys Spring Festival and Winter Olympic are both on the way, open your Tiger Trade App and play the ski game with us, win golden medals as many as you can! You could have chance to try Lucky Draw when you win medals.The more medal you win, the bigger bonus you may win! Big Rewards are as follow: <a href=\"https://www.tigerbrokers.com.sg/activity/market/2022/happy-new-year/#/\" target=\"_blank\">Click to Join the Game</a>","listText":"2022 is the Year of Tiger in Chinese lunar calendar, it’s also a special year for Tiger Brokers. To celebrate the special year, we want to invite you to join the ski game presented by Tiger Brokers specially, and it’s very easy and interesting game for users to play. Join the game and win a bonus of up to USD 2022 and limited-edition Tiger Toys Spring Festival and Winter Olympic are both on the way, open your Tiger Trade App and play the ski game with us, win golden medals as many as you can! You could have chance to try Lucky Draw when you win medals.The more medal you win, the bigger bonus you may win! Big Rewards are as follow: <a href=\"https://www.tigerbrokers.com.sg/activity/market/2022/happy-new-year/#/\" target=\"_blank\">Click to Join the Game</a>","text":"2022 is the Year of Tiger in Chinese lunar calendar, it’s also a special year for Tiger Brokers. To celebrate the special year, we want to invite you to join the ski game presented by Tiger Brokers specially, and it’s very easy and interesting game for users to play. Join the game and win a bonus of up to USD 2022 and limited-edition Tiger Toys Spring Festival and Winter Olympic are both on the way, open your Tiger Trade App and play the ski game with us, win golden medals as many as you can! You could have chance to try Lucky Draw when you win medals.The more medal you win, the bigger bonus you may win! Big Rewards are as follow: Click to Join the Game","images":[{"img":"https://static.tigerbbs.com/a7b44fa056439fb4010fa55e163d27c3","width":"750","height":"1726"}],"top":1,"highlighted":1,"essential":2,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9004448317","isVote":1,"tweetType":1,"viewCount":0,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":2,"langContent":"EN","totalScore":0},"isVote":1,"tweetType":1,"viewCount":113,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":881534979,"gmtCreate":1631360248591,"gmtModify":1676530535463,"author":{"id":"3574241875611006","authorId":"3574241875611006","name":"JD88","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":7,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"<a href=\"https://laohu8.com/S/OTLY\">$Oatly Group AB(OTLY)$</a>not bad","listText":"<a href=\"https://laohu8.com/S/OTLY\">$Oatly Group AB(OTLY)$</a>not bad","text":"$Oatly Group AB(OTLY)$not bad","images":[{"img":"https://static.tigerbbs.com/15f26c6ac869c8833198eafd2a36d76f","width":"1080","height":"2213"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/881534979","isVote":1,"tweetType":1,"viewCount":54,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0}],"hots":[{"id":295686504526136,"gmtCreate":1713199015182,"gmtModify":1713199018505,"author":{"id":"3574241875611006","authorId":"3574241875611006","name":"JD88","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":7,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/NIO\">$NIO Inc.(NIO)$&nbsp;</a> Add another 100 shares. Trust the company moving in the right direction. Focus on the company, not share price. Short term it can be hurt, be patient!&nbsp;","listText":"<a href=\"https://ttm.financial/S/NIO\">$NIO Inc.(NIO)$&nbsp;</a> Add another 100 shares. Trust the company moving in the right direction. Focus on the company, not share price. Short term it can be hurt, be patient!&nbsp;","text":"$NIO Inc.(NIO)$ Add another 100 shares. Trust the company moving in the right direction. Focus on the company, not share price. Short term it can be hurt, be patient!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/295686504526136","isVote":1,"tweetType":1,"viewCount":270,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":881534979,"gmtCreate":1631360248591,"gmtModify":1676530535463,"author":{"id":"3574241875611006","authorId":"3574241875611006","name":"JD88","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":7,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"<a href=\"https://laohu8.com/S/OTLY\">$Oatly Group AB(OTLY)$</a>not bad","listText":"<a href=\"https://laohu8.com/S/OTLY\">$Oatly Group AB(OTLY)$</a>not bad","text":"$Oatly Group AB(OTLY)$not bad","images":[{"img":"https://static.tigerbbs.com/15f26c6ac869c8833198eafd2a36d76f","width":"1080","height":"2213"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/881534979","isVote":1,"tweetType":1,"viewCount":54,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":231160089895112,"gmtCreate":1697470046340,"gmtModify":1697470052263,"author":{"id":"3574241875611006","authorId":"3574241875611006","name":"JD88","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":7,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"You have no idea what are you talking.&nbsp;","listText":"You have no idea what are you talking.&nbsp;","text":"You have no idea what are you talking.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/231160089895112","repostId":"2375795789","repostType":2,"repost":{"id":"2375795789","pubTimestamp":1697450979,"share":"https://www.laohu8.com/m/news/2375795789?lang=&edition=full","pubTime":"2023-10-16 18:09","market":"us","language":"en","title":"SoFi Technologies' Future: Can It Validate Its Premium Valuation? I Don't Think So","url":"https://stock-news.laohu8.com/highlight/detail?id=2375795789","media":"Seekingalpha","summary":"Investors are concerned that there are just too many competing products vying for market share. As a result, it is still uncertain if they will be able to maintain their current level of profitability. That is why I find it difficult to get enthusiastic about SoFi. I'm forced to ponder whether SoFi will be able to stand out in a more constrained and competitive context. This takes me to the next section, thinking about 2024. 2023 is Closing, 2024 Brings Up Questions SOFI revenue growth rates SoFi's 2023 is","content":"<html><head></head><body><ul style=\"\"><li><p>I&#39;m skeptical about SoFi Technologies, Inc.&#39;s valuation compared to its peers in the financial services sector.</p></li><li><p>The competitive landscape in this industry raises doubts about SoFi&#39;s ability to maintain profitability.</p></li><li><p>As we approach 2024, questions about SoFi&#39;s growth rates and valuation multiples continue to linger.</p></li></ul><p>I going to make a greatest artwork as I can, by my head, my hand and by my mind.</p><h2 id=\"id_3402011725\">Investment Thesis</h2><p><strong>SoFi Technologies, Inc.</strong> (NASDAQ: SOFI) is a battleground stock. This means that there are both bears and bulls on either side of the stock. And both sides put across ferocious arguments. Whilst I have a bearish tilt when it comes to SoFi, I can also recognize some aspects where SoFi is delivering strong prospects, particularly when it comes to its adoption curve.</p><p>However, while many have been quick to argue that SoFi is a cheaply valued stock, that&#39;s where I draw the line. I don&#39;t believe that SoFi Technologies, Inc. stock is particularly undervalued. In fact, I find that its peers are significantly cheaper-priced. And I also highlight that this sector is becoming increasingly competitive.</p><h2 id=\"id_914715612\">Some Necessary Perspective</h2><p>SoFi is a one-stop fintech company that focuses on providing various financial products and services, including student and personal loans, mortgages, and more. It aims to be a comprehensive and personalized financial platform for individuals, or members - as they like to refer to customers.</p><p>SoFi doesn&#39;t directly offer payment processing services like <a href=\"https://laohu8.com/S/PYPL\">PayPal</a> (PYPL), <a href=\"https://laohu8.com/S/SQ\">Block</a> (SQ), or Global Payments (GPN) for that matter, but they are peers in the broader range of financial services and products. And I&#39;ve opted for the graphic that follows to show a broad selection of fintech companies. Again, the point of this exercise is to highlight the general investment sentiment facing fintech.</p><p></p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/4fa5eb5aff5ac727d7ae9591277ac3f5\" tg-width=\"635\" tg-height=\"518\"/></p><p>Data by YCharts</p><p>And what you see is that in the past 6 months, SoFi&#39;s share performance has sizzled. Admittedly, this is from a low base from earlier in the year. Nevertheless, the point still remains. Investor appetite for this general sector has been relatively muted. But this hasn&#39;t stopped SoFi from charging ahead.</p><p>In fact, we should recall that some of its peers are already highly profitable and consistently generating strong free cash flows, for instance, PayPal. And here I&#39;m not referring to stock-based compensation added back to bolster EBITDA. Nevertheless, investor appetite for getting involved in this sector remains relatively subdued. Why?</p><p>Investors are concerned that there are just too many competing products vying for market share. As a result, it is still uncertain if they will be able to maintain their current level of profitability. That is why I find it difficult to get enthusiastic about SoFi. I&#39;m forced to ponder whether SoFi will be able to stand out in a more constrained and competitive context.</p><p>This takes me to the next section, thinking about 2024.</p><h2 id=\"id_3461026403\">2023 is Closing, 2024 Brings Up Questions</h2><p></p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/ae6b3a7a14171d740c92c91ce85c4cd3\" tg-width=\"1531\" tg-height=\"581\"/></p><p>SOFI revenue growth rates</p><p>SoFi&#39;s 2023 is expected to close on a very strong footing. Since SoFi performed so well in the first half of 2023, the second half of 2023 would have to be especially weak to materially undermine 2023 as a whole.</p><p>Nevertheless, I believe the message coming out of SoFi is still relatively clear. SoFi&#39;s growth rates are slowing down.</p><p></p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/49f3b76b966554d3d3d65e47b66af9cb\" tg-width=\"455\" tg-height=\"361\"/></p><p>SA Premium</p><p>I recognize that these revenue estimates are purposely conservative to allow for SoFi to sandbag these results. But even if we add 5% to both Q3 and Q4 SoFi revenues, the business is clearly slowing down. There&#39;s no ambiguity. And how much will investors be willing to pay for a business that is in the process of becoming ex-growth?</p><h2 id=\"id_2723825\">SOFI&#39;s Stock Multiple -- Not Stretched, But Not Cheap</h2><p></p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/cf003a0c6152f20328f524ffed4cf0bc\" tg-width=\"635\" tg-height=\"435\"/></p><p>Data by YCharts</p><p>In the past several months we&#39;ve seen SoFi&#39;s multiple expand. And not just expand, but actually <em>double from around 2x forward sales to around 4x forward sales.</em></p><p>Can we expect SoFi&#39;s multiple to expand further in 2024? Perhaps. However, recall that SoFi is now expected to grow in the high 20s% to 30% CAGR. So, clearly, slowing down.</p><p>But then I recall that there are businesses like PayPal or even MoneyLion (ML) that are priced at approximately 8x EBITDA, or less than 3x EBITDA, respectively. I have to wonder whether SoFi can truly support its 20x forward EBITDA valuation? (disclosure: I&#39;m long ML). I find myself too unsure, and unwilling to deploy my hard-earned capital here.</p><h2 id=\"id_343866292\">The Bottom Line</h2><p>SoFi is undeniably a battleground stock, with passionate arguments on both sides.</p><p>While I lean bearish on SoFi, I can&#39;t ignore the promising aspects, particularly its adoption curve. However, I remain skeptical about its valuation; I don&#39;t see it as particularly undervalued when compared to cheaper peers.</p><p>The financial services sector is fiercely competitive, and investors are cautious due to concerns about profitability sustainability amidst fierce competition.</p><p>I&#39;m left uncertain about whether SoFi Technologies, Inc. can truly stand out in this competitive landscape, especially as 2024 approaches with questions about its growth rates and valuation multiples.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>SoFi Technologies' Future: Can It Validate Its Premium Valuation? I Don't Think So</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSoFi Technologies' Future: Can It Validate Its Premium Valuation? I Don't Think So\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-10-16 18:09 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4640523-sofi-technologies-future-can-it-validate-its-premium-valuation-i-dont-think-so><strong>Seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>I'm skeptical about SoFi Technologies, Inc.'s valuation compared to its peers in the financial services sector.The competitive landscape in this industry raises doubts about SoFi's ability to maintain...</p>\n\n<a href=\"https://seekingalpha.com/article/4640523-sofi-technologies-future-can-it-validate-its-premium-valuation-i-dont-think-so\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SOFI":"SoFi Technologies Inc."},"source_url":"https://seekingalpha.com/article/4640523-sofi-technologies-future-can-it-validate-its-premium-valuation-i-dont-think-so","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2375795789","content_text":"I'm skeptical about SoFi Technologies, Inc.'s valuation compared to its peers in the financial services sector.The competitive landscape in this industry raises doubts about SoFi's ability to maintain profitability.As we approach 2024, questions about SoFi's growth rates and valuation multiples continue to linger.I going to make a greatest artwork as I can, by my head, my hand and by my mind.Investment ThesisSoFi Technologies, Inc. (NASDAQ: SOFI) is a battleground stock. This means that there are both bears and bulls on either side of the stock. And both sides put across ferocious arguments. Whilst I have a bearish tilt when it comes to SoFi, I can also recognize some aspects where SoFi is delivering strong prospects, particularly when it comes to its adoption curve.However, while many have been quick to argue that SoFi is a cheaply valued stock, that's where I draw the line. I don't believe that SoFi Technologies, Inc. stock is particularly undervalued. In fact, I find that its peers are significantly cheaper-priced. And I also highlight that this sector is becoming increasingly competitive.Some Necessary PerspectiveSoFi is a one-stop fintech company that focuses on providing various financial products and services, including student and personal loans, mortgages, and more. It aims to be a comprehensive and personalized financial platform for individuals, or members - as they like to refer to customers.SoFi doesn't directly offer payment processing services like PayPal (PYPL), Block (SQ), or Global Payments (GPN) for that matter, but they are peers in the broader range of financial services and products. And I've opted for the graphic that follows to show a broad selection of fintech companies. Again, the point of this exercise is to highlight the general investment sentiment facing fintech.Data by YChartsAnd what you see is that in the past 6 months, SoFi's share performance has sizzled. Admittedly, this is from a low base from earlier in the year. Nevertheless, the point still remains. Investor appetite for this general sector has been relatively muted. But this hasn't stopped SoFi from charging ahead.In fact, we should recall that some of its peers are already highly profitable and consistently generating strong free cash flows, for instance, PayPal. And here I'm not referring to stock-based compensation added back to bolster EBITDA. Nevertheless, investor appetite for getting involved in this sector remains relatively subdued. Why?Investors are concerned that there are just too many competing products vying for market share. As a result, it is still uncertain if they will be able to maintain their current level of profitability. That is why I find it difficult to get enthusiastic about SoFi. I'm forced to ponder whether SoFi will be able to stand out in a more constrained and competitive context.This takes me to the next section, thinking about 2024.2023 is Closing, 2024 Brings Up QuestionsSOFI revenue growth ratesSoFi's 2023 is expected to close on a very strong footing. Since SoFi performed so well in the first half of 2023, the second half of 2023 would have to be especially weak to materially undermine 2023 as a whole.Nevertheless, I believe the message coming out of SoFi is still relatively clear. SoFi's growth rates are slowing down.SA PremiumI recognize that these revenue estimates are purposely conservative to allow for SoFi to sandbag these results. But even if we add 5% to both Q3 and Q4 SoFi revenues, the business is clearly slowing down. There's no ambiguity. And how much will investors be willing to pay for a business that is in the process of becoming ex-growth?SOFI's Stock Multiple -- Not Stretched, But Not CheapData by YChartsIn the past several months we've seen SoFi's multiple expand. And not just expand, but actually double from around 2x forward sales to around 4x forward sales.Can we expect SoFi's multiple to expand further in 2024? Perhaps. However, recall that SoFi is now expected to grow in the high 20s% to 30% CAGR. So, clearly, slowing down.But then I recall that there are businesses like PayPal or even MoneyLion (ML) that are priced at approximately 8x EBITDA, or less than 3x EBITDA, respectively. I have to wonder whether SoFi can truly support its 20x forward EBITDA valuation? (disclosure: I'm long ML). I find myself too unsure, and unwilling to deploy my hard-earned capital here.The Bottom LineSoFi is undeniably a battleground stock, with passionate arguments on both sides.While I lean bearish on SoFi, I can't ignore the promising aspects, particularly its adoption curve. However, I remain skeptical about its valuation; I don't see it as particularly undervalued when compared to cheaper peers.The financial services sector is fiercely competitive, and investors are cautious due to concerns about profitability sustainability amidst fierce competition.I'm left uncertain about whether SoFi Technologies, Inc. can truly stand out in this competitive landscape, especially as 2024 approaches with questions about its growth rates and valuation multiples.","news_type":1},"isVote":1,"tweetType":1,"viewCount":178,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9970116445,"gmtCreate":1684150790888,"gmtModify":1684150795539,"author":{"id":"3574241875611006","authorId":"3574241875611006","name":"JD88","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":7,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"Joke!","listText":"Joke!","text":"Joke!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9970116445","repostId":"1167853068","repostType":2,"repost":{"id":"1167853068","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1684149910,"share":"https://www.laohu8.com/m/news/1167853068?lang=&edition=full","pubTime":"2023-05-15 19:25","market":"us","language":"en","title":"SoFi Shares Drop After Wedbush Downgraded SoFi to Sell","url":"https://stock-news.laohu8.com/highlight/detail?id=1167853068","media":"Tiger Newspress","summary":"In a report released today, David Chiaverini from Wedbush downgraded SoFi Technologies to Sell, with","content":"<html><head></head><body><p>In a report released today, David Chiaverini from Wedbush downgraded SoFi Technologies to Sell, with a price target of $2.50. The company’s shares closed last Friday at $5.02.</p><p>SoFi shares dropped 5% in premarket trading Monday.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/386142242056f99c0d80b1e7be34556f\" tg-width=\"825\" tg-height=\"619\"/></p><p></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>SoFi Shares Drop After Wedbush Downgraded SoFi to Sell</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSoFi Shares Drop After Wedbush Downgraded SoFi to Sell\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2023-05-15 19:25</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>In a report released today, David Chiaverini from Wedbush downgraded SoFi Technologies to Sell, with a price target of $2.50. The company’s shares closed last Friday at $5.02.</p><p>SoFi shares dropped 5% in premarket trading Monday.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/386142242056f99c0d80b1e7be34556f\" tg-width=\"825\" tg-height=\"619\"/></p><p></p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SOFI":"SoFi Technologies Inc."},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1167853068","content_text":"In a report released today, David Chiaverini from Wedbush downgraded SoFi Technologies to Sell, with a price target of $2.50. The company’s shares closed last Friday at $5.02.SoFi shares dropped 5% in premarket trading Monday.","news_type":1},"isVote":1,"tweetType":1,"viewCount":103,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":285633092669592,"gmtCreate":1710769440558,"gmtModify":1710769444175,"author":{"id":"3574241875611006","authorId":"3574241875611006","name":"JD88","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":7,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"This is pure bull s!!&nbsp;","listText":"This is pure bull s!!&nbsp;","text":"This is pure bull s!!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/285633092669592","repostId":"1168982126","repostType":2,"repost":{"id":"1168982126","pubTimestamp":1710752254,"share":"https://www.laohu8.com/m/news/1168982126?lang=&edition=full","pubTime":"2024-03-18 16:57","market":"us","language":"en","title":"SoFi Technologies: Pessimism Is Justified","url":"https://stock-news.laohu8.com/highlight/detail?id=1168982126","media":"seekingalpha","summary":"SummaryThe potential decline in interest rates could negatively impact SoFi's net interest income.Consumers' weakening financial health may lead to higher delinquency rates and limit SOFI's future gro","content":"<html><head></head><body><h2 id=\"id_3855195556\" style=\"text-align: left;\">Summary</h2><ul style=\"\"><li><p>The potential decline in interest rates could negatively impact SoFi&#39;s net interest income.</p></li><li><p>Consumers&#39; weakening financial health may lead to higher delinquency rates and limit SOFI&#39;s future growth.</p></li><li><p>The company&#39;s valuation, in the current environment, is likely expensive.</p></li></ul><h2 id=\"id_3534563060\" style=\"text-align: left;\">Introduction</h2><p style=\"text-align: left;\">In my previous articles, I had a sell rating on SoFi Technologies. In both of the articles, my primary argument for a sell thesis was the potential macroeconomic headwind. At the time, I believed that the slowly declining consumers&#39; financial health could create a headwind for the company going forward. Today, I continue to stand by my reasoning from the previous articles. SoFi&#39;s stock has declined about 5% since the publication of my previous article compared to a 20% increase in the S&amp;P 500 during this time. Further, I believe the macroeconomic conditions have significantly worsened with initial signs of weakness in the market leading to the continuation of my negative view of the company. Thus, I believe my bearish case on SoFi strengthened in the past few months. Consumers&#39; financial conditions are weakening, which will likely affect SoFi&#39;s bottom line and also pressure the company to expand more conservatively. Finally, with the expectation of a declining federal funds rate in 2024, SoFi&#39;s net interest income, NII, could be negatively affected. Therefore, I am maintaining my sell thesis on SoFi.</p><h2 id=\"id_1359816226\" style=\"text-align: left;\">Declining Interest Rate</h2><p style=\"text-align: left;\">SoFi had a great calendar year in 2023. The company&#39;s top and bottom-line growth was extremely strong. In the 2023Q4 earnings report, SoFi reported a net interest income of $389.6 million which was up 87% from the prior-year period. The company was able to report such exceptional NII growth as a result of increasing interest rates on interest earnings assets by 3 basis points sequentially and 8 basis points year-over-year. Considering that the company&#39;s total revenue for the quarter was $615 million, I believe it is reasonable to say SoFi, being a fintech company, is heavily reliant on interest income.</p><p style=\"text-align: left;\">Unfortunately, SoFi&#39;s interest income could be challenged in 2024. During the last FOMC meeting of 2023 held in December, the Federal Reserve Chair Jerome Powell indicated that the organization may cut the federal funds rate 3 times in 2024 effectively lowering the market interest rate. Some economists including Goldman Sachs (GS) are expecting the Fed to cut rates by 5 times, which is far more aggressive than the Fed estimates.</p><p style=\"text-align: left;\">The lowering of the interest rate will likely impact SoFi&#39;s interest income on its loans as the interest rate on the loans declines. The magnitude of the impact will ultimately depend on the pace at which the Federal Reserve utilizes in lowering the federal funds rate, but as the market suggests, I believe it is highly likely that SoFi&#39;s net interest income to be pressured going into 2024.</p><p style=\"text-align: left;\">The initial example of the potentially lower interest rates impacting banks came from JPMorgan Chase (JPM) during their earnings call on January 12th. The company said that the &#34;lower interest rates will decrease NII&#34;. As such, it is highly likely for SoFi to see the impact of the macroeconomic conditions in 2024.</p><h2 id=\"id_1355741606\" style=\"text-align: left;\">Consumers&#39; Financial Health</h2><p style=\"text-align: left;\">On top of the potential headwind forming from the interest rate environment for SoFi, consumers&#39; weakening financial health will also likely pressure the company. Weakening financial health could not only increase the delinquency rates, but it could also pressure the company to be more conservative in its underwriting limiting future growth.</p><p style=\"text-align: left;\">As the chart below shows, according to the St. Louis Federal Reserve, delinquency rates on all consumer loans have continued to increase for the past several quarters. In the most recent quarter, 2023Q3, the loan delinquency rates reached 2.53%, which was 6.75% growth quarter-over-quarter. Beyond the delinquency rate that is higher than pre-pandemic levels, the rate at which the rate is continually increasing is alarming. From 2023Q1 to 2023Q2 and from 2022Q4 to 2023Q1, the delinquency rate rose 6.76% and 7.25% quarter-over-quarter, respectively, which means that there was no slowdown in the increase of the delinquency rate for the past few quarters. As such, with no meaningful slowdowns, it could be likely for the consumers&#39; financial health to worsen going forward.</p><p style=\"text-align: left;\"></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/e4a832a2451a1c9ce5ad72d6fbb90b6c\" alt=\"Consumer Loan Delinquency Rate Chart\" title=\"Consumer Loan Delinquency Rate Chart\" tg-width=\"640\" tg-height=\"243\"/><span>Consumer Loan Delinquency Rate Chart</span></p><p style=\"text-align: left;\"><strong>St. Louis Federal Reserve</strong></p><p style=\"text-align: left;\"></p><p style=\"text-align: left;\">In addition to the historical data provided by the Federal Reserve, JP Morgan&#39;s earnings report, as mentioned earlier, has hinted at continually increasing consumer delinquency rates. The company is expecting the charge-off rates to hit 3.5% compared to 2.79% in 2023.</p><p style=\"text-align: left;\">Overall, I believe it is likely for the consumers&#39; financial health to continue declining, and because the majority of SoFi&#39;s bottom line comes from its lending business, there will likely be a significant impact on SoFi&#39;s business if the consumers&#39; financial health continues to deteriorate.</p><h2 id=\"id_2434584353\" style=\"text-align: left;\">Management Team&#39;s View</h2><p style=\"text-align: left;\">SoFi reported a stellar 2023Q4 earnings report. Everything from top to bottom-line results were strong as the revenue grew 35% year-over-year and the company reached GAAP profitability on expanding margins. However, the continuation of these positive results is unlikely in 2024.</p><p style=\"text-align: left;\">In addition to my view of the macroeconomic conditions involving consumers&#39; financial health and the interest rate environment, SoFi&#39;s management team also provided a sour 2024 outlook. During the earnings call, the company&#39;s management team said that the company is &#34; taking a conservative and pragmatic approach toward [the] Lending segment revenue, expecting to largely maintain it, given our concerns about the 2024 macro environment as it relates to uncertainty on rates, the economy, and industry liquidity.&#34; As a result, SoFi is expecting &#34;the Lending segment revenue to be 92% to 95% of 2023 lending revenue,&#34; hinting at a decline in the company&#39;s highest margin business segment. In the fourth quarter, the lending segment&#39;s contribution profit was $226 million compared to the financial services and technology platform&#39;s $25 and $30 million, respectively. As such, the macroeconomic conditions are expected to have a profound effect on SoFi throughout 2024.</p><p style=\"text-align: left;\">One may argue that SoFi&#39;s diversification process could offset these macroeconomic risks in 2024. The management team said that financial services and technology platforms will drive growth in 2024 increasing the percentage of adjusted revenue to 50% from 38% in 2023. While diversification is certainly a positive factor in the long-term, I do not see this fully offsetting the slowdown and risks in the lending segment business as the profit margins on these segments, as of now, are significantly lower than lending segments. The lending segment&#39;s contribution profit to revenue margin was 65.25% compared to 23.58% for financial services and technology platforms. Therefore, I believe there are significant headwinds to SoFi&#39;s growth potential in 2024 due to macroeconomic conditions.</p><h2 id=\"id_631715272\" style=\"text-align: left;\">Valuation</h2><p style=\"text-align: left;\">Some investors bullish on SoFi&#39;s prospects may argue that the company&#39;s strong growth and expected profitability in 2024 and onwards constitute a bullish outlook along with a premium valuation. However, even when considering the company&#39;s past strong growth and expected profitability, I believe SoFi&#39;s valuation is too expensive today.</p><p style=\"text-align: left;\">The company, at the time of writing, has a market capitalization of $6.89 billion today with a 2024 forward price-to-earnings of 96.67. 2024 is the first year SoFi is expected to report profitability, so one may say that the price-to-earnings ratio is high. Thus, looking at 2025, SoFi has a forward price-to-earnings ratio of 27.78.</p><p style=\"text-align: left;\">For the current valuation to be reasonable where investors could expect a valuation appreciation, at the absolute minimum, 2025 forward price-to-earnings multiple should be undervalued leaving room for valuation appreciation throughout 2024. However, considering the current macroeconomic condition, I do not believe there is much upside potential at this level. Not only will bonds be more attractive even after 3 rate cuts at the target federal funds rate of 4.5 to 4.75%, but the macroeconomic conditions will weigh on the company&#39;s growth expectations. For example, the company&#39;s 2025 forward price-to-earnings ratio is 27.78, which means that the investors are paying 27.78 times the company&#39;s earnings for a single share. Not taking intensive growth into account, this means that the annual return an investor could expect on investment is about 3.6% (1/27.78) compared to the treasury bond return of about 4.5%. Investors pay a premium on the stock over bonds because of an upside potential justifying high valuation, but if the market environment does not allow this, I do not think a premium valuation should be rewarded as it is too risky. Therefore, it is likely that there are more risks than reward potential in SoFi&#39;s current valuation.</p><h2 id=\"id_3804928683\" style=\"text-align: left;\">Risk to Thesis</h2><p style=\"text-align: left;\">My bearish thesis relies on souring macroeconomic conditions. However, if it is the case that the macroeconomic conditions do not worsen in 2024, my thesis could be at risk. SoFi&#39;s management team, during the 2023Q4 earnings call, mentioned that their outlook is conservative. As such, if it is the case that the management&#39;s initial 2024 outlook is too conservative due to the economic slowdown&#39;s magnitude being shallow, my bearish thesis could be at risk</p><h2 id=\"id_2599730362\" style=\"text-align: left;\">Summary</h2><p style=\"text-align: left;\">Going into 2024, I believe the risks to reward potentially are unfavorable for SoFi as the macroeconomic risks are expected to create strong headwinds for the company. The Federal Reserve is expected to lower the federal funds rate likely pressuring the company&#39;s net interest income and margin. Further, as the consumers&#39; financial health continues to deteriorate, the company may experience higher levels of delinquency rates or be pressured to be more conservative in its loan underwriting. Finally, given the massive macroeconomic headwinds in the upcoming quarters, I believe the current valuation is too expensive. Therefore, SoFi is a sell.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>SoFi Technologies: Pessimism Is Justified</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSoFi Technologies: Pessimism Is Justified\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-03-18 16:57 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4678810-sofi-pessimism-is-justified><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryThe potential decline in interest rates could negatively impact SoFi's net interest income.Consumers' weakening financial health may lead to higher delinquency rates and limit SOFI's future ...</p>\n\n<a href=\"https://seekingalpha.com/article/4678810-sofi-pessimism-is-justified\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SOFI":"SoFi Technologies Inc."},"source_url":"https://seekingalpha.com/article/4678810-sofi-pessimism-is-justified","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1168982126","content_text":"SummaryThe potential decline in interest rates could negatively impact SoFi's net interest income.Consumers' weakening financial health may lead to higher delinquency rates and limit SOFI's future growth.The company's valuation, in the current environment, is likely expensive.IntroductionIn my previous articles, I had a sell rating on SoFi Technologies. In both of the articles, my primary argument for a sell thesis was the potential macroeconomic headwind. At the time, I believed that the slowly declining consumers' financial health could create a headwind for the company going forward. Today, I continue to stand by my reasoning from the previous articles. SoFi's stock has declined about 5% since the publication of my previous article compared to a 20% increase in the S&P 500 during this time. Further, I believe the macroeconomic conditions have significantly worsened with initial signs of weakness in the market leading to the continuation of my negative view of the company. Thus, I believe my bearish case on SoFi strengthened in the past few months. Consumers' financial conditions are weakening, which will likely affect SoFi's bottom line and also pressure the company to expand more conservatively. Finally, with the expectation of a declining federal funds rate in 2024, SoFi's net interest income, NII, could be negatively affected. Therefore, I am maintaining my sell thesis on SoFi.Declining Interest RateSoFi had a great calendar year in 2023. The company's top and bottom-line growth was extremely strong. In the 2023Q4 earnings report, SoFi reported a net interest income of $389.6 million which was up 87% from the prior-year period. The company was able to report such exceptional NII growth as a result of increasing interest rates on interest earnings assets by 3 basis points sequentially and 8 basis points year-over-year. Considering that the company's total revenue for the quarter was $615 million, I believe it is reasonable to say SoFi, being a fintech company, is heavily reliant on interest income.Unfortunately, SoFi's interest income could be challenged in 2024. During the last FOMC meeting of 2023 held in December, the Federal Reserve Chair Jerome Powell indicated that the organization may cut the federal funds rate 3 times in 2024 effectively lowering the market interest rate. Some economists including Goldman Sachs (GS) are expecting the Fed to cut rates by 5 times, which is far more aggressive than the Fed estimates.The lowering of the interest rate will likely impact SoFi's interest income on its loans as the interest rate on the loans declines. The magnitude of the impact will ultimately depend on the pace at which the Federal Reserve utilizes in lowering the federal funds rate, but as the market suggests, I believe it is highly likely that SoFi's net interest income to be pressured going into 2024.The initial example of the potentially lower interest rates impacting banks came from JPMorgan Chase (JPM) during their earnings call on January 12th. The company said that the \"lower interest rates will decrease NII\". As such, it is highly likely for SoFi to see the impact of the macroeconomic conditions in 2024.Consumers' Financial HealthOn top of the potential headwind forming from the interest rate environment for SoFi, consumers' weakening financial health will also likely pressure the company. Weakening financial health could not only increase the delinquency rates, but it could also pressure the company to be more conservative in its underwriting limiting future growth.As the chart below shows, according to the St. Louis Federal Reserve, delinquency rates on all consumer loans have continued to increase for the past several quarters. In the most recent quarter, 2023Q3, the loan delinquency rates reached 2.53%, which was 6.75% growth quarter-over-quarter. Beyond the delinquency rate that is higher than pre-pandemic levels, the rate at which the rate is continually increasing is alarming. From 2023Q1 to 2023Q2 and from 2022Q4 to 2023Q1, the delinquency rate rose 6.76% and 7.25% quarter-over-quarter, respectively, which means that there was no slowdown in the increase of the delinquency rate for the past few quarters. As such, with no meaningful slowdowns, it could be likely for the consumers' financial health to worsen going forward.Consumer Loan Delinquency Rate ChartSt. Louis Federal ReserveIn addition to the historical data provided by the Federal Reserve, JP Morgan's earnings report, as mentioned earlier, has hinted at continually increasing consumer delinquency rates. The company is expecting the charge-off rates to hit 3.5% compared to 2.79% in 2023.Overall, I believe it is likely for the consumers' financial health to continue declining, and because the majority of SoFi's bottom line comes from its lending business, there will likely be a significant impact on SoFi's business if the consumers' financial health continues to deteriorate.Management Team's ViewSoFi reported a stellar 2023Q4 earnings report. Everything from top to bottom-line results were strong as the revenue grew 35% year-over-year and the company reached GAAP profitability on expanding margins. However, the continuation of these positive results is unlikely in 2024.In addition to my view of the macroeconomic conditions involving consumers' financial health and the interest rate environment, SoFi's management team also provided a sour 2024 outlook. During the earnings call, the company's management team said that the company is \" taking a conservative and pragmatic approach toward [the] Lending segment revenue, expecting to largely maintain it, given our concerns about the 2024 macro environment as it relates to uncertainty on rates, the economy, and industry liquidity.\" As a result, SoFi is expecting \"the Lending segment revenue to be 92% to 95% of 2023 lending revenue,\" hinting at a decline in the company's highest margin business segment. In the fourth quarter, the lending segment's contribution profit was $226 million compared to the financial services and technology platform's $25 and $30 million, respectively. As such, the macroeconomic conditions are expected to have a profound effect on SoFi throughout 2024.One may argue that SoFi's diversification process could offset these macroeconomic risks in 2024. The management team said that financial services and technology platforms will drive growth in 2024 increasing the percentage of adjusted revenue to 50% from 38% in 2023. While diversification is certainly a positive factor in the long-term, I do not see this fully offsetting the slowdown and risks in the lending segment business as the profit margins on these segments, as of now, are significantly lower than lending segments. The lending segment's contribution profit to revenue margin was 65.25% compared to 23.58% for financial services and technology platforms. Therefore, I believe there are significant headwinds to SoFi's growth potential in 2024 due to macroeconomic conditions.ValuationSome investors bullish on SoFi's prospects may argue that the company's strong growth and expected profitability in 2024 and onwards constitute a bullish outlook along with a premium valuation. However, even when considering the company's past strong growth and expected profitability, I believe SoFi's valuation is too expensive today.The company, at the time of writing, has a market capitalization of $6.89 billion today with a 2024 forward price-to-earnings of 96.67. 2024 is the first year SoFi is expected to report profitability, so one may say that the price-to-earnings ratio is high. Thus, looking at 2025, SoFi has a forward price-to-earnings ratio of 27.78.For the current valuation to be reasonable where investors could expect a valuation appreciation, at the absolute minimum, 2025 forward price-to-earnings multiple should be undervalued leaving room for valuation appreciation throughout 2024. However, considering the current macroeconomic condition, I do not believe there is much upside potential at this level. Not only will bonds be more attractive even after 3 rate cuts at the target federal funds rate of 4.5 to 4.75%, but the macroeconomic conditions will weigh on the company's growth expectations. For example, the company's 2025 forward price-to-earnings ratio is 27.78, which means that the investors are paying 27.78 times the company's earnings for a single share. Not taking intensive growth into account, this means that the annual return an investor could expect on investment is about 3.6% (1/27.78) compared to the treasury bond return of about 4.5%. Investors pay a premium on the stock over bonds because of an upside potential justifying high valuation, but if the market environment does not allow this, I do not think a premium valuation should be rewarded as it is too risky. Therefore, it is likely that there are more risks than reward potential in SoFi's current valuation.Risk to ThesisMy bearish thesis relies on souring macroeconomic conditions. However, if it is the case that the macroeconomic conditions do not worsen in 2024, my thesis could be at risk. SoFi's management team, during the 2023Q4 earnings call, mentioned that their outlook is conservative. As such, if it is the case that the management's initial 2024 outlook is too conservative due to the economic slowdown's magnitude being shallow, my bearish thesis could be at riskSummaryGoing into 2024, I believe the risks to reward potentially are unfavorable for SoFi as the macroeconomic risks are expected to create strong headwinds for the company. The Federal Reserve is expected to lower the federal funds rate likely pressuring the company's net interest income and margin. Further, as the consumers' financial health continues to deteriorate, the company may experience higher levels of delinquency rates or be pressured to be more conservative in its loan underwriting. Finally, given the massive macroeconomic headwinds in the upcoming quarters, I believe the current valuation is too expensive. Therefore, SoFi is a sell.","news_type":1},"isVote":1,"tweetType":1,"viewCount":62,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":190460583751952,"gmtCreate":1687524690672,"gmtModify":1687525783764,"author":{"id":"3574241875611006","authorId":"3574241875611006","name":"JD88","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":7,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"Totally manipulation. Analyst are bullshit.&nbsp;","listText":"Totally manipulation. Analyst are bullshit.&nbsp;","text":"Totally manipulation. Analyst are bullshit.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/190460583751952","repostId":"2345778715","repostType":2,"repost":{"id":"2345778715","pubTimestamp":1687523621,"share":"https://www.laohu8.com/m/news/2345778715?lang=&edition=full","pubTime":"2023-06-23 20:33","market":"us","language":"en","title":"Compass Point Initiates Coverage of SoFi Technologies at \"Sell\" With a Price Target of $5.00","url":"https://stock-news.laohu8.com/highlight/detail?id=2345778715","media":"Investing.com","summary":"Compass Point analyst Giuliano Bologna initiates coverage on SoFi Technologies ...(Premium-only article. Please sign in or upgrade to SI Premium to view.)","content":"<html><head></head><body><p>An analyst from Compass Point initiated coverage of SoFi Technologies (NASDAQ: SOFI) at &#39;sell&#39; with a price target of $5.00.</p><p style=\"text-align: left;\">Prior to this rating, SoFi Technologies had 6 buy ratings, 9 hold ratings, and 1 sell ratings.</p><p style=\"text-align: left;\">SoFi Technologies&#39;s stock price closed at $8.49. They are up 62.96% in the last month and up 46.89% in the last 12 months.</p><p style=\"text-align: left;\">According to Investing Pro, SoFi Technologies&#39;s fair value is $7.34, a downside of 13.50%. SoFi Technologies&#39;s fair value comes with a high degree of uncertainty.</p><p>SoFi Technologies shares fell over 5% in premarket trading.</p><p></p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/8c9445c9493095defd4b16590bc73e59\" title=\"\" tg-width=\"770\" tg-height=\"628\"/></p><p></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Compass Point Initiates Coverage of SoFi Technologies at \"Sell\" With a Price Target of $5.00</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCompass Point Initiates Coverage of SoFi Technologies at \"Sell\" With a Price Target of $5.00\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-06-23 20:33 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://in.investing.com/news/social-capital-hedosophia-v-receives-investment-bank-analyst-rating-update-3695959><strong>Investing.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>An analyst from Compass Point initiated coverage of SoFi Technologies (NASDAQ: SOFI) at 'sell' with a price target of $5.00.Prior to this rating, SoFi Technologies had 6 buy ratings, 9 hold ratings, ...</p>\n\n<a href=\"https://in.investing.com/news/social-capital-hedosophia-v-receives-investment-bank-analyst-rating-update-3695959\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://in.investing.com/news/social-capital-hedosophia-v-receives-investment-bank-analyst-rating-update-3695959","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2345778715","content_text":"An analyst from Compass Point initiated coverage of SoFi Technologies (NASDAQ: SOFI) at 'sell' with a price target of $5.00.Prior to this rating, SoFi Technologies had 6 buy ratings, 9 hold ratings, and 1 sell ratings.SoFi Technologies's stock price closed at $8.49. They are up 62.96% in the last month and up 46.89% in the last 12 months.According to Investing Pro, SoFi Technologies's fair value is $7.34, a downside of 13.50%. SoFi Technologies's fair value comes with a high degree of uncertainty.SoFi Technologies shares fell over 5% in premarket trading.","news_type":1},"isVote":1,"tweetType":1,"viewCount":261,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":299554315997344,"gmtCreate":1714152801594,"gmtModify":1714153108626,"author":{"id":"3574241875611006","authorId":"3574241875611006","name":"JD88","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":7,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"another crap post","listText":"another crap post","text":"another crap post","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/299554315997344","repostId":"2430075522","repostType":2,"isVote":1,"tweetType":1,"viewCount":90,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":201776078332088,"gmtCreate":1690298187508,"gmtModify":1690298191591,"author":{"id":"3574241875611006","authorId":"3574241875611006","name":"JD88","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":7,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"Is analyst trap!!! Earning out sure drop!! Becareful!&nbsp;","listText":"Is analyst trap!!! Earning out sure drop!! Becareful!&nbsp;","text":"Is analyst trap!!! Earning out sure drop!! Becareful!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/201776078332088","repostId":"2354315391","repostType":2,"isVote":1,"tweetType":1,"viewCount":225,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":199316860072016,"gmtCreate":1689696579530,"gmtModify":1689696583486,"author":{"id":"3574241875611006","authorId":"3574241875611006","name":"JD88","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":7,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"who keep pumping this stock??","listText":"who keep pumping this stock??","text":"who keep pumping this stock??","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/199316860072016","repostId":"2352752062","repostType":2,"repost":{"id":"2352752062","pubTimestamp":1689660300,"share":"https://www.laohu8.com/m/news/2352752062?lang=&edition=full","pubTime":"2023-07-18 14:05","market":"us","language":"en","title":"Why Did Upstart Stock Jump Nearly 14% on Monday","url":"https://stock-news.laohu8.com/highlight/detail?id=2352752062","media":"Motley Fool","summary":"An improving inflation picture combined with a high-short interest fueled another leg of Upstart's ongoing short squeeze.","content":"<html><head></head><body><h2 id=\"id_1257074368\">What happened</h2><p>Shares of fintech platform <strong>Upstart</strong> rocketed 13.7% higher on Monday.</p><p>The company, founded in 2012 and public since late 2020, has long predicated itself on the use of AI to better underwrite loans. However, since late 2021, the former highflier has experienced a brutal drawdown, as buyers of Upstart&#39;s loans fled the platform in droves amid high inflation and fears of a recession. That led not only to the stock being taken to the woodshed, but for its short interest to rise to a whopping 32.5% of shares outstanding as of the end of June.</p><p>However, financial and fintech stocks appear to be rising today as well as other economically sensitive stocks especially harmed by rapidly rising interest rates. This is likely due to some better-than-expected inflation readings last week, while job growth remains robust.</p><p>Given Upstart&#39;s sky-high short interest, recent optimism over the economy is leading to a pretty epic short squeeze on the stock ahead of earnings season.</p><h2 id=\"id_776822546\">So what</h2><p>One of the dangers of short selling is that unlike buying a stock where your loss is limited to 100%, when you borrow a stock and sell it short, your losses could potentially be unlimited. Therefore, when a heavily shorted stock runs higher, the short seller&#39;s prime broker may issue a margin call and force the short seller to buy back their stock at a loss.  </p><p>That could be what&#39;s happening with Upstart today. After all, many of the economic headwinds that caused such a big sell-off over the past 18 months appear to be subsiding. In 2021, the inflationary scare caused interest rates to go higher and delinquencies to increase for Upstart&#39;s personal and auto loans.</p><p>Not only did delinquencies tick up, but because Upstart&#39;s loan buyers, mostly banks and credit unions, were seeing their cost of capital rapidly rise, with a lot of uncertainty as to how high it would go, many essentially stopped buying loans. And since Upstart doesn&#39;t have a banking license and therefore doesn&#39;t own its own deposits, it was at the mercy of these third parties.</p><p>However, inflation is now coming down, with many thinking the Federal Reserve is nearly done with its federal funds rate hikes even though the jobs market has remained strong. Moreover, Upstart has announced a couple of long-term funding deals that will provide it with some committed capital. That will help mitigate, though not totally eliminate, the threat of large capital flights in the medium term.</p><p>Investors perhaps are now anticipating a Goldilocks scenario &#34;soft landing&#34; for the economy, which would be an ideal scenario for Upstart and the worst one for its short sellers.</p><h2 id=\"id_3819029773\">Now what</h2><p>With today&#39;s rally, Upstart is now up a stunning 300% on the year and now trades at a $4.4 billion market cap and six times sales. The company is currently making losses, as it&#39;s had to decrease originations.   </p><p>It&#39;s pretty hard to value Upstart precisely because we don&#39;t really know how much funding will return when interest rates settle or how much market share Upstart can regain in the personal loan space once funding comes back.</p><p>Still, with its short interest still likely high, AI being a new buzzword, and the potential for an economic recovery and optimism this earnings season, it wouldn&#39;t surprise me to see the stock go higher.</p><p>Investors should just beware this rally may be mostly due to non-fundamental factors.</p><p>Last Wednesday, Upstart announced that it has partnered with Arbor Financial Credit Union to provide its members with personal loans. </p><p style=\"text-align: start;\">&#34;We are excited to welcome Arbor Financial Credit Union to the family of Upstart lending partners,&#34; said <strong>Michael Lock</strong>, SVP of Lending Partnerships for Upstart. &#34;As part of the Upstart Referral Network, Arbor is able to attract new members and offer them its personal loans through an all-digital lending experience.&#34;</p><p style=\"text-align: start;\">Upstart is an AI lending marketplace that partners with banks and credit unions to expand access to affordable credit.  Upstart provides a fully-digital, automated lending platform that allows for greater than two-thirds of its loans to be approved instantly.</p><p style=\"text-align: start;\">Upstart will release its second quarter financial results on August 8 after the market close and will discuss the results during a conference call and webcast that day at 4:30 p.m. ET.</p></body></html>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Did Upstart Stock Jump Nearly 14% on Monday</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Did Upstart Stock Jump Nearly 14% on Monday\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-07-18 14:05 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2023/07/17/why-upstart-rocketed-14-higher-today/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>What happenedShares of fintech platform Upstart rocketed 13.7% higher on Monday.The company, founded in 2012 and public since late 2020, has long predicated itself on the use of AI to better ...</p>\n\n<a href=\"https://www.fool.com/investing/2023/07/17/why-upstart-rocketed-14-higher-today/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"UPST":"Upstart Holdings, Inc.","BK4561":"索罗斯持仓","BK4166":"消费信贷","BK4585":"ETF&股票定投概念","BK4588":"碎股"},"source_url":"https://www.fool.com/investing/2023/07/17/why-upstart-rocketed-14-higher-today/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2352752062","content_text":"What happenedShares of fintech platform Upstart rocketed 13.7% higher on Monday.The company, founded in 2012 and public since late 2020, has long predicated itself on the use of AI to better underwrite loans. However, since late 2021, the former highflier has experienced a brutal drawdown, as buyers of Upstart's loans fled the platform in droves amid high inflation and fears of a recession. That led not only to the stock being taken to the woodshed, but for its short interest to rise to a whopping 32.5% of shares outstanding as of the end of June.However, financial and fintech stocks appear to be rising today as well as other economically sensitive stocks especially harmed by rapidly rising interest rates. This is likely due to some better-than-expected inflation readings last week, while job growth remains robust.Given Upstart's sky-high short interest, recent optimism over the economy is leading to a pretty epic short squeeze on the stock ahead of earnings season.So whatOne of the dangers of short selling is that unlike buying a stock where your loss is limited to 100%, when you borrow a stock and sell it short, your losses could potentially be unlimited. Therefore, when a heavily shorted stock runs higher, the short seller's prime broker may issue a margin call and force the short seller to buy back their stock at a loss.  That could be what's happening with Upstart today. After all, many of the economic headwinds that caused such a big sell-off over the past 18 months appear to be subsiding. In 2021, the inflationary scare caused interest rates to go higher and delinquencies to increase for Upstart's personal and auto loans.Not only did delinquencies tick up, but because Upstart's loan buyers, mostly banks and credit unions, were seeing their cost of capital rapidly rise, with a lot of uncertainty as to how high it would go, many essentially stopped buying loans. And since Upstart doesn't have a banking license and therefore doesn't own its own deposits, it was at the mercy of these third parties.However, inflation is now coming down, with many thinking the Federal Reserve is nearly done with its federal funds rate hikes even though the jobs market has remained strong. Moreover, Upstart has announced a couple of long-term funding deals that will provide it with some committed capital. That will help mitigate, though not totally eliminate, the threat of large capital flights in the medium term.Investors perhaps are now anticipating a Goldilocks scenario \"soft landing\" for the economy, which would be an ideal scenario for Upstart and the worst one for its short sellers.Now whatWith today's rally, Upstart is now up a stunning 300% on the year and now trades at a $4.4 billion market cap and six times sales. The company is currently making losses, as it's had to decrease originations.   It's pretty hard to value Upstart precisely because we don't really know how much funding will return when interest rates settle or how much market share Upstart can regain in the personal loan space once funding comes back.Still, with its short interest still likely high, AI being a new buzzword, and the potential for an economic recovery and optimism this earnings season, it wouldn't surprise me to see the stock go higher.Investors should just beware this rally may be mostly due to non-fundamental factors.Last Wednesday, Upstart announced that it has partnered with Arbor Financial Credit Union to provide its members with personal loans. \"We are excited to welcome Arbor Financial Credit Union to the family of Upstart lending partners,\" said Michael Lock, SVP of Lending Partnerships for Upstart. \"As part of the Upstart Referral Network, Arbor is able to attract new members and offer them its personal loans through an all-digital lending experience.\"Upstart is an AI lending marketplace that partners with banks and credit unions to expand access to affordable credit.  Upstart provides a fully-digital, automated lending platform that allows for greater than two-thirds of its loans to be approved instantly.Upstart will release its second quarter financial results on August 8 after the market close and will discuss the results during a conference call and webcast that day at 4:30 p.m. ET.","news_type":1},"isVote":1,"tweetType":1,"viewCount":191,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":192973835268096,"gmtCreate":1688142369960,"gmtModify":1688142648606,"author":{"id":"3574241875611006","authorId":"3574241875611006","name":"JD88","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":7,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"Trash analyst!","listText":"Trash analyst!","text":"Trash analyst!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/192973835268096","repostId":"2348328334","repostType":2,"isVote":1,"tweetType":1,"viewCount":70,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9970185755,"gmtCreate":1684160698877,"gmtModify":1684162622487,"author":{"id":"3574241875611006","authorId":"3574241875611006","name":"JD88","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":7,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"If you don't do your own due diligent, you may sell away your good stocks because of those manipulation clown!&nbsp;","listText":"If you don't do your own due diligent, you may sell away your good stocks because of those manipulation clown!&nbsp;","text":"If you don't do your own due diligent, you may sell away your good stocks because of those manipulation clown!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9970185755","repostId":"2335570895","repostType":2,"isVote":1,"tweetType":1,"viewCount":131,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9963107876,"gmtCreate":1668610819895,"gmtModify":1676538084523,"author":{"id":"3574241875611006","authorId":"3574241875611006","name":"JD88","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":7,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"bullshit","listText":"bullshit","text":"bullshit","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9963107876","repostId":"2283926294","repostType":2,"isVote":1,"tweetType":1,"viewCount":180,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9099033288,"gmtCreate":1643276382843,"gmtModify":1676533794478,"author":{"id":"3574241875611006","authorId":"3574241875611006","name":"JD88","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":7,"crmLevelSwitch":1,"followedFlag":false},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9099033288","repostId":"9004448317","repostType":1,"repost":{"id":9004448317,"gmtCreate":1642676525258,"gmtModify":1676533734534,"author":{"id":"3527667667103859","authorId":"3527667667103859","name":"TigerEvents","avatar":"https://community-static.tradeup.com/news/c266ef25181ace18bec1262357bbe1a8","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"title":"Join Tiger Ski Championship, Win a Bonus of Up to USD 2022","htmlText":"2022 is the Year of Tiger in Chinese lunar calendar, it’s also a special year for Tiger Brokers. To celebrate the special year, we want to invite you to join the ski game presented by Tiger Brokers specially, and it’s very easy and interesting game for users to play. Join the game and win a bonus of up to USD 2022 and limited-edition Tiger Toys Spring Festival and Winter Olympic are both on the way, open your Tiger Trade App and play the ski game with us, win golden medals as many as you can! You could have chance to try Lucky Draw when you win medals.The more medal you win, the bigger bonus you may win! Big Rewards are as follow: <a href=\"https://www.tigerbrokers.com.sg/activity/market/2022/happy-new-year/#/\" target=\"_blank\">Click to Join the Game</a>","listText":"2022 is the Year of Tiger in Chinese lunar calendar, it’s also a special year for Tiger Brokers. To celebrate the special year, we want to invite you to join the ski game presented by Tiger Brokers specially, and it’s very easy and interesting game for users to play. Join the game and win a bonus of up to USD 2022 and limited-edition Tiger Toys Spring Festival and Winter Olympic are both on the way, open your Tiger Trade App and play the ski game with us, win golden medals as many as you can! You could have chance to try Lucky Draw when you win medals.The more medal you win, the bigger bonus you may win! Big Rewards are as follow: <a href=\"https://www.tigerbrokers.com.sg/activity/market/2022/happy-new-year/#/\" target=\"_blank\">Click to Join the Game</a>","text":"2022 is the Year of Tiger in Chinese lunar calendar, it’s also a special year for Tiger Brokers. To celebrate the special year, we want to invite you to join the ski game presented by Tiger Brokers specially, and it’s very easy and interesting game for users to play. Join the game and win a bonus of up to USD 2022 and limited-edition Tiger Toys Spring Festival and Winter Olympic are both on the way, open your Tiger Trade App and play the ski game with us, win golden medals as many as you can! You could have chance to try Lucky Draw when you win medals.The more medal you win, the bigger bonus you may win! Big Rewards are as follow: Click to Join the Game","images":[{"img":"https://static.tigerbbs.com/a7b44fa056439fb4010fa55e163d27c3","width":"750","height":"1726"}],"top":1,"highlighted":1,"essential":2,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9004448317","isVote":1,"tweetType":1,"viewCount":0,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":2,"langContent":"EN","totalScore":0},"isVote":1,"tweetType":1,"viewCount":113,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"lives":[]}