SoFi Stock - The Biggest Problem With SoFi
from Nanalyze Hosted by Nanalyze
Stay informed with our free disruptive technology investing newsletter, Nanalyze Weekly. Signup now at https://www.nanalyze.com/nanalyze-weekly/. This episode is pulled from a YouTube presentation. View the original presentation at https://youtu.be/ChvCPVKZ4ww. SoFi stock has been tearing up the charts as cheerleaders mindlessly push shares of SoFi, though it's unlikely most can answer one simple question - what does SoFi do? A better question would be where SoFi's revenues come from, and 2/3 come from unsecured loans (43% of which are personal loans). With unsecured consumer debt at an all time high along with interest rates and a lot of irresponsible loan recipients asking for the government to "forgive" money they rightfully borrowed, this isn't exposure we want anything to do with. The only hope would be that SoFi's other two revenue segments - Technology and Financial Services - grow enough to diversify away their strong dependence on unsecured consumer loans. Should all these HENRYs start running into problems because many are dumb enough to live paycheck to paycheck, it's going to wreak havoc on SoFi's balance sheet where lots of this debt sits because institutions no longer have the same appetites for these securitized loans. $SOFI stock is one we'll be avoiding going forward.
Embed this episode
No transcript yet.