#3 - SoFi Technologies (NASDAQ:SOFI)
The banking sector is traditionally a winner in times of inflation. However, this may not be your typical inflation event. And that makes it an ideal time to think outside the box with the newly public SoFi Technologies (NASDAQ:SOFI).
Digital banking was a necessity during the pandemic. In fact, digital banking penetration increased by 14% in 2020. There’s a saying in sports, “don’t let them see your backup.” When it comes to fintech companies like SoFi once they attract customers, they tend to stick around.
Do not let the fact that SoFi went public via a special purpose acquisition company (SPAC) cloud your thinking. Unlike many SPAC companies that are going public on little more than a kiss and a promise, SoFi already is generating strong revenue. In 2020, it delivered net revenue of $621 million. And it’s projecting that number to reach $1 billion this year.
With a combination of a growing member base and growing revenue, the bank is also expecting to deliver positive EBITDA in 2021. SOFI stock may be choppy until its lockup period ends in July, but investors that do not currently own a position in the company should put it on their watch list.
About SoFi Technologies
SoFi Technologies, Inc provides various financial services in the United States, Latin America, and Canada. It operates through three segments: Lending, Technology Platform, and Financial Services. The company offers lending and financial services and products that allows its members to borrow, save, spend, invest, and protect money.
Read More - Current Price
- $7.87
- Consensus Rating
- Hold
- Ratings Breakdown
- 6 Buy Ratings, 10 Hold Ratings, 3 Sell Ratings.
- Consensus Price Target
- $9.08 (15.4% Upside)
