SoFi Technologies (SOFI) remains a key holding in my portfolio because of its long-term growth potential and strong positioning in the fintech space. While the stock has faced some volatility, I believe its unique approach—operating as a full-service digital bank—gives it a competitive advantage. SoFi's ability to offer banking services, personal loans, and investment products under one platform sets it apart from traditional banks and other fintech companies. The company's recent $697.6 million securitization of personal loans also indicates strong demand and effective risk management. While profitability remains a concern, SoFi is consistently growing revenue, expanding its customer base, and reducing reliance on third-party banking partners, all of which should contribute to long-term profitability.
In addition to holding shares, I have also sold Put options on SOFI, which means I may be assigned additional shares at a lower price. This strategy reflects my confidence in the stock's future, as it allows me to accumulate shares at a discount while generating premium income in the process. While some analysts have issued bearish ratings, others have price targets as high as $20, showing a wide range of expectations. I believe that as SoFi continues to scale and improve its balance sheet, investor sentiment will shift positively, potentially driving the stock higher over time. The company's ability to retain deposits and lower borrowing costs as a chartered bank is a crucial advantage that will help it compete in a high-interest rate environment.
Of course, this is not financial advice—just my personal outlook on the stock. I understand that short-term volatility and market sentiment can impact SoFi's price action, but my focus is on the bigger picture. The fintech industry is still in its early stages, and SoFi is well-positioned to capture a significant share of this market. With continued growth in its banking and lending divisions, I see the potential for long-term appreciation, and I’m comfortable holding my shares while strategically using options to enhance my position.
