SoFi: Nu Who? A Bank Stock Bargain

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Alright, settle in, folks. You’ve probably heard the buzz about Nu Holdings (NU +1.42%). Sixty percent up last year? Twenty-five percent already this year? Oy vey! It’s practically printing money! And believe me, I know something about printing money. (It involves a lot of rubber stamps and a very understanding accountant.) But here’s the thing: just because something’s going up, doesn’t mean it’s a bargain. It’s like a used chariot – just because it’s moving doesn’t mean it won’t fall apart mid-race.

So, what’s a sensible investor to do? Look for alternatives, naturally. And let me tell you, I’ve found one. A real gem. A diamond in the rough, if you will. (Though, please don’t actually try to find diamonds in the rough. It’s mostly just dirt and disappointment.) It’s called SoFi Technologies (SOFI +2.33%). And it’s, shall we say, a little less… exuberant… in its current valuation. A steal, practically! (Don’t tell the brokers I said that.)

SoFi: The Growth Machine (No Gears Required)

Now, some of you youngsters are probably saying, “SoFi? Never heard of it!” Well, let me enlighten you. SoFi is an online bank. No branches. No stuffy tellers judging your deposit size. It’s the future, people! (Or, at least, a slightly less inconvenient present.) Founded in 2011, they started by helping folks wrestle with student loan debt. (A noble cause, believe me, I know a thing or two about debt.) But they’ve expanded. Now they’ve got checking accounts, credit cards, brokerage services… the whole shebang! They’re like the Swiss Army Knife of banking. Except, you know, digital.

As of last year, they’re boasting $50 billion in assets and over 13.6 million customers. That’s a lot of accounts! They’ve been growing their customer base every quarter since 2019. (Which, if you’ll recall, was a rather tumultuous year. So, good for them.) And their fourth-quarter revenue hit a record $1 billion – up 37% year over year! Analysts are predicting similar growth this year and next. (Though, let’s be honest, analysts predict a lot of things. Sometimes they’re right. Sometimes they’re… not.)

Online Banking: It’s Not Just for Millennials Anymore

Look, let’s face it: the world is going digital. Everything is done on an app these days. Ordering groceries, hailing a cab, even arguing with strangers… it’s all done with a swipe and a tap. And banking is no different. According to the American Bankers Association, 54% of bank customers prefer using a mobile app. (The other 46% are probably still writing checks. Bless their hearts.) Even the Baby Boomers are getting in on the act! They may not understand TikTok, but they can certainly manage their checking accounts on their iPads.

So, SoFi is perfectly positioned to capitalize on this trend. They’re a digital-first bank, built for the modern age. (Which, by the way, is increasingly filled with robots and self-driving cars. Just saying.)

Opportunity Knocks (Please Don’t Ignore It)

Now, some of you are probably thinking, “But Nu Holdings is also growing rapidly!” And you’re right! It is. But here’s the deal: SoFi shares are currently trading down 40% from their November peak. Why? Well, a little underwhelming guidance, some share dilution to raise funds, and a touch of profit-taking. (It happens. Even to the best of us.)

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But don’t let that scare you off! This is a temporary setback. The fundraising made sense, and SoFi has plenty of opportunity to put that money to good use. Plus, the analyst community still thinks SoFi shares are worth $26.56 apiece. That’s nearly 40% above the current price! (Which, if you ask me, is a pretty sweet deal. Like getting two bagels for the price of one.)

So, what are you waiting for? Do your research, talk to your broker, and consider adding SoFi to your portfolio. You might just thank me later. (And if you do, please send a fruit basket. I have a weakness for grapes.)

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2026-02-24 22:12