SoFi Technologies (NASDAQ: SOFI) reported solid results a few weeks ago. The digital financial institution posted adjusted revenue of $460 million and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $76 million in the first quarter, both representing huge year-over-year gains. Those figures also meaningfully exceeded even the high end of management's target.
Regardless, the stock hasn't performed as well, and was only up 7% this year as of May 19. Moreover, SoFi shares are still down 81% from their peak. Does this present a worthwhile buying opportunity? Let's dissect the bearish and bullish arguments for this fintech stock so investors can have better information to make a smart decision.
Although SoFi is a digital bank, the products and services it offers are really the same as what other banks provide. Things like savings accounts, personal loans, and credit cards can also be found at a seemingly endless number of competitors. These commoditized offerings, and lack of true differentiation, might turn off some investors who are really only after businesses that have something unique to give customers.
Source Fool.com