Why Today’s SoFi Breakout Could Lead to a Triple-Digit Rally Tomorrow

Stocks to buy

Did I call it or what? I’m talking about SoFi (SOFI), which popped in response to second-quarter earnings, which were fantastic. SoFi’s stock soared as investors digested the report. But then – a hiccup. SoftBank moved to sell part of its stake in the company, and SOFI shares took a dip. What comes next?

Well, in the current economic environment, fintech companies were expected to report slowing growth and not-so-great earnings. And yet SoFi released superb numbers. Across the board, the key theme there was reaccelerating growth. Management also lifted its full-year revenue and EBITDA guidance. SoFi is firing on all cylinders.

Remember; Amazon (AMZN) got to where it is by being a one-stop shop for all-things ecommerce. SoFi is following Jeff Bezos & Co.’s blueprint in the fintech space. We’ve been bullish on the stock for a long time now, and we’ll continue to be for a lot longer. At the end of the day, SOFI is a long-term growth asset.

Compared to legacy financial giants, SoFi is a lower cost financial platform across the board. Instead of having five or six platforms for your banking purposes, you only need SoFi –  which provides higher yields on savings accounts, better fees on crypto buying, better mortgage rates, better personal loan rates, and so much more.

What more do you want out of your bank?

The advantages that allow SoFi to act as the Amazon of Finance are built into its DNA, meaning it’s not easy for a Wells Fargo or Bank of America to replicate. This is more pronounced as the firm attracts more talented developers to its workforce, allowing it to create a more polished finished product than possible at legacy banks.

That said, it’s important to note that we’re not bullish on where the company will be six months from now. We’re focused on its five- and 10-year outlook.

So long as the company continues to power forward, our conviction remains strong. In truth, the move from SoftBank is non-news. We’re going to stay the course if the fundamentals remain robust, and that’s the case today.

I think this stock could go to $100, $150, even $200 over the coming years, and I’m in it for the long haul.

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