Investing Simplified - Professor G on $SOFI (Nov 5, 2026)

Let's move on to the next arrow. This stock has been extremely volatile and somewhat frustrating, so I understand that, but let me talk about what's going on here. This stock is "SoFi".

The stock is trading around $17, down 35% this year and 47% from its November high, but recently jumped 13% after its earnings report on October 27. Here's why. Sophie's work has never been stronger than it is now.

Revenue rose by 44% to a record high of $1.37 billion. The company added 1.2 million members, bringing the total number of members to 17.1 million, and deposits reached $51.3 billion.

It also reported profits of $241 million and raised its full-year revenue forecast to $5.04 billion, with projections to reach $6.4 billion by 2027. So why is this stock still struggling?

The dilution of shareholder equity, concerns about short sellers, and rising interest rates have all weighed heavily on the stock, but the latest earnings showed a 73% year-on-year profit growth with a real improvement in personal loan losses.

Wall Street remains divided with an average price target of between $20 and $21, an increase of approximately 20%, although some analysts expect it to reach $26 or $27. So, what is my next step regarding this stock?

For me at the moment, I'm just holding onto the stocks. Sophie still represents a small position in my portfolio, and the company is performing exactly as I had hoped. If profitability continues to improve and we continue to see the same growth rate, I could certainly see myself buying more.

But for now, I'm going to let the investment take its course.

Both Sophie and the Drum Memory Fund rely on profitable businesses that have just broken records. Sophie and Micron continue to achieve record quarterly profits .

Applied Digital's revenues have more than quadrupled. All three stocks remain well below their high levels. This is the real discount.