Trade Call: Wait for Earnings Before Buying SOFI Due to Overvaluation
"So, if you're interested in buying SoFi stock before they announce earnings on Tuesday, October 28th, I would say it would be more prudent to wait until after the earnings results, digest the information, and then make your purchase after seeing what the company reports. I'm okay with missing out on the upside here because I think there's much more downside following these earnings results than upside."
The speaker advises investors to avoid buying SOFI stock ahead of the upcoming earnings announcement, citing that the stock has significantly overvalued levels with a current market price well above intrinsic value and a forward PE near historical highs. He believes waiting until after the earnings report will provide clearer insights and reduce downside risk.
Bullish Trade Call on SOFI with Earnings Catalyst
"So, is SoFi set to deliver? Well, I believe the answer is yes. And let's get into my reasoning. So, first of all, my position on SoFi right now, I have several hundred shares or 3,100 shares. I'm up about 33% on the stock and I think SoFi is headed for some really big numbers. I would say there's a very strong support at $25 per share and my current position on SoFi. I have $26 puts which I think is a really smart strategy to sell puts before earnings in case it does fall down. I'd be more than happy to buy SoFi at $26 per share."
The speaker expresses strong bullish conviction on SOFI, highlighting a significant rally (up 33%) in his holdings and a belief that earnings will drive the stock even higher. He identifies key technical support at $25, employs a hedging strategy with $26 puts, and indicates willingness to add positions at that level.
SoFi Stock Forecast with Mixed Catalysts and Risk
"So all that being said, where do I see SoFi stock by the end of next year? Well, I still think SoFi stock is most likely to move higher, but with substantial risk. And so, I see the share price rising to between $35 a share and $40 per share by the end of next year. But this is going to come with significant risk. The downside could be much more. And the upside could also be much more. Its a high risk, high-reward type situation for SoFi stock investors next year."
The speaker outlines his forecast for SoFi, stating that while the stock has performed strongly and is expected to move higher based on various forward PE scenarios, there are significant risks from a slowing economy and potential defaults in its lending portfolio. He projects the stock price to reach between $35 and $40 by the end of next year, highlighting a high risk, high-reward situation.
Sell Cash Secured Put for SoFi
"Stock number two is going to be SoFi Technologies, stock ticker SoFi. I would love to own the stock more at that mid $20 range. As such, I want to sell a cash secured put looking to enter this stock in the mid $20 range. So, here we go again. Let"s sell a cash secured put. And as you could see the option chain on your screen, we"re going to sell the November 21st $25 strike, which will give us around $1.20 in terms of premium, equating to $120 per contract."
The speaker presents a strategy for SoFi Technologies by using options to potentially enter the stock at a lower price. He plans to sell a cash secured put with a $25 strike expiring November 21st to generate income while waiting for a pullback into the mid $20 range.
Options Strategy for SoFi Technologies (SOFI)
"And that's going to bring us to stock number two, which is going to be SoFi Technologies, stock ticker Sofi. It has had a phenomenal run, but I would like to buy it just say 15% lower if we do get some volatility over the next month or so. So for me, I'm going to take the approach from an options strategy looking to generate income with the hopes of buying a stock that I want to buy at a price that I want to buy it at. I like the $23 level for SoFi. By selling the $23 put with an expiration date of November 21st, I could collect $1.25 per contract."
The speaker outlines an options strategy for SoFi Technologies (SOFI), preferring to sell cash-secured puts at a $23 strike price to generate income and potentially acquire the stock at a lower price.
Trade Call: Buy SoFi on Dip for Strong Growth and Margin Expansion
"The first stock which I haven't talked about in a while is SoFi. SoFi is down 7% over the last 5 days... I bought the dip on August 20th at $21 and now it's sitting at 25... I might even average up at $25 because I believe the stock is just extremely undervalued relative to the potential... fundamentals have also improved a lot and earnings per share should be up 150% going into 2026."
The speaker outlines a strong buy case for SoFi (ticker: SOFI), emphasizing its rebound from previous lows, improved fundamentals, and multiple tailwinds including fee-based revenue growth, potential upside from crypto re-entry, and a favorable housing market environment. The call is to buy or average up on dips given its attractive valuation relative to future earnings and margin improvements.
Comparative Commentary on SoFi Versus Robinhood
"SoFi drops for the seventh straight day. It hasn’t taken off the way Robinhood has, yet I like SoFi. If their growth continues their phenomenal 29% growth, I think SoFi is going to take off, despite their higher valuation."
The analyst compares SoFi (SOFI) with Robinhood, noting that while Robinhood has seen explosive gains, SoFi appears to be lagging. Despite its expensive valuation, the analyst remains optimistic about SoFi if its growth momentum continues, suggesting it could be an interesting opportunity.
Consider a Starter Position in SOFI on a 30% Dip
"I might be willing to take a starter position because I do like SoFi and I like where they're at, but unless this drops by probably 30% or more, I'm going to be holding off on making this a big position."
The hosts analyze SoFi Technologies (trading as SOFI) and note that while the company shows strong deposit growth and competitive positioning, its current valuation (around 4x book value and roughly 13x projected 2030 earnings) is expensive. They recommend waiting for a price drop of approximately 30% to align with a more attractive, single digit 5-year earnings multiple before initiating a larger position.