On the latest episode of “The Deep End” podcast, co-host Brad Freeman, co-host Shay Boloor, and Future Investing creator Tannor Manson outlined a bullish case for SoFi Technologies Inc. (NASDAQ:SOFI).
Market Mispricing and the Nvidia Comparison
Addressing the stock’s recent market underperformance, Freeman stated that purchasing SoFi stock at current valuation levels “is like buying Advanced Micro Devices, Inc. (NASDAQ:AMD) or Nvidia Corp. (NASDAQ:NVDA) at the depths of their” cyclical bottoms.
Valuation Disconnect and Growth Outlook
Boloor stated that SoFi is currently valued like a tech company while trading like a lender, leaving the stock vulnerable to daily swings in interest rates, credit concerns, and lending sentiment.
Manson stated that SoFi management functions as a “compulsive sandbagger” regarding financial guidance, despite management projecting 30% revenue growth and 40% earnings per share growth over the next three years.
Freeman added that market sentiment around SoFi has turned overly negative, arguing that most bad news is already priced into the stock.
Credit Metrics and Cost Advantages
Manson noted that SoFi has expanded to 16 million members and over $45 billion in deposits, with revenue growing at approximately 30%. Freeman cited 90-day delinquency rates of 0.40% and an annualized charge-off ratio of 3.7% as evidence of credit book resilience.
Freeman also stated that SoFi operates with a structural cost advantage over legacy financial institutions because it avoids branch real estate expenses and utilizes its bank charter to fund loans via lower-cost deposits rather than expensive warehouse debt.
Balance Sheet Structure and Capital Strategy
Addressing historical capital raises, Freeman stated that balance sheet optimizations allowed SoFi to eliminate high-interest debt and substitute it with low-cost deposit funding.
Manson explained that SoFi’s loan platform business generates fee-based revenue by originating loans for third-party institutional capital without consuming SoFi’s balance sheet capacity.
All three analysts confirmed they hold long positions in SoFi stock, with Boloor noting he remains invested despite being down 20% on his position.
How Has SOFI Performed in 2026?
Price Action: At the last check, the SOFI stock rose about 5.95% to $17.98 premarket on Tuesday. It was down about 43% over the last year, and 35.18% year-to-date.
Benzinga’s Edge Stock Rankings indicate that SOFI maintains a weak price trend in the short, medium, and long terms, with a poor growth score.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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