I personally do not live in the US so have no chance to try out the app myself. Back then I bought some shares of this company because of the interesting growth story and the hype(was naive). I know there are many Sofi bulls out here, but mine was just a starter position.
The recent market downturn forces me to relook at my investments, and Sofi is one stock that I hesitate to buy more even at these prices. The more I study it, the more it looks like a bank, which means what they're doing can easily be replicated if legacy banks decide to invest in it. They seems to burn a lot of cash just to get people on board, and loans get approved much more easily which isn't necessarily a good thing imo especially in times like these.
So what exactly is the value proposition here? Is there anything so special about it over legacy banks that will make you want to use it besides all the freebies they give to hook you in? And do consumers really feel that their money is safe with them? Yes they have a lot of products, but any banks can create these products too. Moreover, traditional banks have much solid balance sheet which to me is still a much safer option.
Please enlighten me as I really wanna understand the company. And perhaps share with me their path to profitability too if you can project it.
Thanks a bunch
Leave a Reply