(Bullish) SoFi Stock Alert: Buy the Dip on This Fintech Darling
If you wanted to build a profitable bank, how would you do it?
The founders of SoFi (NASDAQ:SOFI) certainly had the right idea. Instead of lending to businesses (which tend to chase after the lowest-possible interest rates), why not loan cash to rich kids instead? Or at least the kids you think will become rich in the future.
It’s a business that has worked. Mostly, anyway. In January, the company reported that its net interest margin had expanded to 5.94% after seeing deposits rise 46% in the quarter. And though SoFi still loses money every quarter because of its significant marketing expenses, analysts believe the bank could generate as much as $260 million in profits by 2025.
The founders of SoFi (NASDAQ:SOFI) certainly had the right idea. Instead of lending to businesses (which tend to chase after the lowest-possible interest rates), why not loan cash to rich kids instead? Or at least the kids you think will become rich in the future.
It’s a business that has worked. Mostly, anyway. In January, the company reported that its net interest margin had expanded to 5.94% after seeing deposits rise 46% in the quarter. And though SoFi still loses money every quarter because of its significant marketing expenses, analysts believe the bank could generate as much as $260 million in profits by 2025.