SOFI is a compelling buy due to strong revenue growth (41%) and attractive valuation (P/B ~1.8) following multiple compression.

The first one that I wanted to go over is SoFi shares are actually down 44%. But if you look at their revenue, the revenue is actually up 41% over the past year. So what in the world is going?

And the first thing to look at with SoFi is that they've had phenomenal revenue growth on both the lending side of the business. This is traditional bank lending where you're giving out more personal loans, also student loans.

Those are kind of the two things that they've grown up on. They've moved more into mortgages lately, but it's just a loan business. Simple as that.

The other big piece is financial services. So, they've grown financial services significantly. This is going to be fees from credit cards and their loan platform business also ends up in this. So, much more feebased businesses.

The big flaw in their revenue growth over the past year is this segment right here, the technology platform business. What the idea behind this was is, hey, we're going to develop this technology for ourselves.

Why don't we then license it out to other companies? The problem is a lot of other banks also do this very competitive space and they lost a huge customer that was chime late in 2025.

So that's why that revenue has started to decline. This has just not been the growth business that a lot of investors thought that it was going to be.

The other thing that happened to SoFi is they've just simply had mar multiple compression. What that means is that their price to earnings multiple, price to sales multiple, price to book multiple is going to be really the most important for a banking stock has gone from as high as about five in September 2025.

That was when the stock kind of peaked right around that period of time. You know, it was four in November, October. That has fallen by more than 50% over this period of time. It's now about 1.8.

You look at other big banks are trading for a little bit in excess of two times their book value. So shares are now getting to the point where they're a pretty compelling valuation for investors.

And this is a phenomenal growth company. That's what really differentiates it from a lot of its competitors. And I think the real core of that thesis to me is that this is a digital first company.

Most traditional banks are going to have branches. They're going to have thousands, tens of thousands of people who are working for them. SoFi is going to be much more digital, be able to scale that business around the US and eventually around the world much more than those companies.

That's really how they've been able to grow their business.

There's lots of lowhanging fruit for them as well. Most of their customers still only have about one product. So you go in, you get, let's say, a personal loan for $10,000. The next thing you do is they want you to add a credit card.

They want you to open a bank account. They want you to open a stock brokerage account. As customers do that more, this is really going to compound because their member base has compounded at a 35% compound growth rate since 2023.

Now 15.8 million members. I could see that being easily over 100 million members a decade from now. Like I said, more members using more products. That's going to mean more growth for SoFi.

So, phenomenal growth for SoFi over the past couple of years, 40% over the trailing 12 months. I think this is going to be a company that's going to compound and you're getting at a pretty compelling valuation right now.