Transcription
I got a massive update on SoFi. You must listen to this because SoFi is a stock that is about to take off. I have many catalysts in this video that if you understand properly, then you will have an edge versus other investors. You can make more money on SoFi as a stock. So, let's do a deep analysis. Let's cut through any of the BS. Let's get right to the point.
I always talk about SoFi and I talk about how strong the business is and I'm going to discuss the fundamentals and the technicals. Look, let's talk about the technicals a bit on SoFi right now and where SoFi is. In the last one month, the stock is up 18%. I told you guys this stock is going to make it's going to literally make a ton of money for investors. It's going to continue to do well. The business is amazing. Over the six-month period, it's up 90%. Analysts can't even keep up. They're going from 14 to to 20. They're like, "Man, I have to like pretty much raise my price target by 50%." Okay, 13 to 14. This guy is way behind. As you can tell, analysts don't really know what they're doing half the time, right? Let me be your analyst. Let me let me tell you what's up. Let me tell you how to make money hand over fist, bicep over tricep. I'm pumped up about SoFi. The stock's at $25. I said it's going to be a $30 billion market cap. And look at any of my old SoFi videos. I say in every single video. Now, the next point that we're kind of looking forward to is going to be the $50 billion market cap. And to get there, we're going to need some catalysts. So, let's talk about the catalysts.
But first, let's start off with the business. I like SoFi because of the upsell model. This is simply why I like SoFi because they have figured out how to acquire customers and make a lot of money from those customers. On the front end, they acquire customers through their big funnel. Okay, I'll talk about a funnel in just a second. And then as part of their big funnel, they get a wide net of customers and a lot of leads. And then they funnel those leads into products, products, products, products. And then um at the bottom, they have very expensive like high tier products where they make a ton of money. But on the top end, they still make some money. And that's good because all this adds up to lots of dollar bills.
Now, one thing that I actually don't really talk about much uh on YouTube, but I've learned back in college, in my senior year of finance school, um my professor and I really looked into Uber companies like an Uber or a uh or a Facebook at the time and it's because of something called the network effect and there's even a movie I believe network effect. Okay, so every new service increases the gravity uh per se, right? the gravity of the ecosystem, right? So, every time a new user kind of pulls into SoFi, there is a network effect of more money created for SoFi as a business. Similar to how Apple or Amazon work, once you're inside, it's kind of hard to leave. I mean, you become a fan. Uh, a long time ago, I was using Samsung. Now, I use iPhone and yeah, I I like iPhone. And then you just continue to be a customer, a repeat customer. So, uh, SoFi is really kind of like a super app for finance. It's not just a bank. Okay.
Now, talking about a funnel and what it is, uh, if you don't know, a funnel is basically just a system and a process to, uh, get a person or some type of attention into money. That's it, right? It's in marketing and sales. A funnel is a step-by-step path that guides a potential customer from first discovering something or a brand or a product all the way to endstage purchasing the product, service or um yeah product, service. Yeah, product or service. So also part of that is also good to obviously a strong funnel creates a loyal customer. So it's not just a customer, it's a loyal customer, right? A you can create a customer that buys you know almond milk once but it's better that the person becomes an almond drink uh almond milk drinker for life right of course. So it's called a funnel because it starts wide right and then it funnels down into more narrow and narrow and less people obviously end up adopting the product or service. So, we'll talk about what that looks like for SoFi because you need to understand that because the catalyst that I will discuss later in this video, you're going to be like, "Ah, that makes sense. They're going to make a ton of money." Because part of being a good investor is having high conviction. So, in my Discord community, I don't have a thousand positions. I'm not doing, you know, everything. I'm doing something very specific. And the trades that I give out, they're specific high conviction trades. And I made tons of money off of those trades because I have high conviction and I'm very specific and I'm not, you know, putting thousands of trades on. I'm making literally couple of trades a week on my calls and then we're making a ton of money. So it's all results driven. So to me, results is the most important. And then I focus on high conviction trades, high probability trades with, you know, the minimum risk possible, right? as low risk as possible, paying attention to risk management. That's that's my goal as a coach. That's what I do, right?
So, if you look at how the funnel starts, it starts wide. Lots of people see your content or ads, and then it narrows down where people take action. So, what that looks like for SoFi is they have a hook, right? They have a free checking account or savings account with a high APY product, right? Maybe it's a bonus. Maybe it's a 10 to $100 bonus. I really like that because they have something called like micro products. So, they have a $5 to $20 low friction like uh hooks. Basically, they hook you in. Maybe it's a budgeting tool, a short uh a short financial literacy challenge, right? You see everyone doing challenges on the internet. Uh or uh they even gify uh you know, rounding up your savings account. So, they're they're very genius. They hook you in. They might even give you a free stock to sign up. you know, we Robin Hood does that and Weeble and and and Mumu and and all those other brokerage firms that I don't use other than Robin Hood for the most part. Uh but giving a free stock obviously hooks someone in because it's kind of like a free gift. It's like candy. You know how those you you go to some um you walk around some popular places, they have samples, right? So it's kind of like a sample. And for SoFi, they have a tiered front-end product. So it's5 to $20 and then not everyone bites on a free account even though it's free. Not everyone bites. Like for me, I don't really I don't want to open up more accounts. I'm lazy to do that. I have one account. I'm good. That's it. Right. So, they added a mid-tier product because, you know, this is the funnel. They start off big and then uh some people take the low friction product, the 5 to 20 bucks. And then next one is they add in $97 uh you know, something like a $97 to $297 like course or webinar or something like that. You know, you see that all all the time on on the on the internet. Every single YouTuber is selling something. There is no other option YouTuber that does not sell a program, for example. They all sell a Patreon or a program and then they want to get as many customers on that as possible because it's a business. Uh, you know, yeah, YouTube is a business. Absolutely. And that's fine, right? You want to see a company do good things and make money along the way doing it. So, that is what I'm looking for. And I like that about Sofa. I think they have a great product. Um, and they have really good monetization tactics. So they offer personal loans, credit cards, mortgages, student loan refinancing. Uh and they encourage uh investing in stocks, ETFs, and crypto.
By the way, uh one of the biggest catalysts is that they are getting into crypto. Like if if this is this is the number I don't know if it's the number one catalyst, it's probably like the number two catalyst. Number two catalyst is that uh SoFi is going into blockchain powered international crypto services, right? So they launched or they just launched and they're in the process of monetizing further. SoFi actually partnered with Lightspark to deploy a blockchainbased international money transfer feature initially in Mexico. This service will let users send US dollars to recipients who receive local currency via realtime conversion through Bitcoin. And their expansion plan is to continue. So after Mexico SoFi intends to broaden the roll out. It's also reintroducing crypto services enabling members to buy, sell, and hold digital assets including Ethereum and other stable coins and of course Bitcoin. So yeah, they allow you to stake them. So staking is when you know you have, you know, Ethereum. I have Ethereum and then you're able to stake it. So I can even show you what that looks like. But that's good because this is this is a kind of like new grounds investors in in crypto. It's it's still actually pretty early. Like I got into crypto recently myself, like not that long ago. And it's great because it's a way to diversify and as an investor. It's also great as a company offering crypto because more investors will want to diversify. So here I have some Ethereum. I don't know if the desktop version will show you how much I'm making off staking. I don't think it will. I don't think it'll show you how much I'm making off staking. Yeah, it won't. But I stake Ethereum and it's basically kind of like a dividend because it will pay you um for holding you know for holding on to the coin. So this matters a lot because it makes crypto more attractive and more investors who will be getting into crypto will now you know benefit SoFi. So will be benefiting because yeah they're in the crypto space now. So this is a really huge catalyst and if they continue to execute here their feebased revenue will go up. So feebased revenue in Q2 uh it was $377 uh million up 72%. So it's a lot of money, you know, they're making a lot of money fee based revenue and fee based revenue is is nice obviously, you know, it's it's money. It's money that they're making, right? So this matters because fee income is higher margin. It's also less rate sensitive. Um, so like just doing like deep analysis here, it's not rate sensitive. So if rates go up or down, feebased revenues don't really care. They just make a percentage of like transactions. So they don't really care. you know, whenever you buy anything pretty much it's through Stripe. Whether you're buying someone's Patreon for 50 bucks a month or whatever it is, uh even Patreon's like backend is still like pretty sure it's still Stripe, right? Stripe processes payments. So, um for a lot of businesses, physical products, uh information products, uh services, people use Stripe and that's one going to be one of the biggest IPOs whenever they IPO, but they make a ton of feebased revenue. They make transaction revenue. So, SoFi is kind of like that and that's really really strong. Uh, so that's one of the biggest catalysts that I'm looking for is what will their crypto revenues be like? What is that going to look like? Cuz the more transactionbased revenue they're going to make, then they're going to be able to go for a higher valuation and more investors will obviously bid up the price and that's how we're going to get to 50 uh billion dollars in market cap. Uh, it's also through like trust and stickiness of course. So like having repeat customers and yeah like the SoFi loyalty uh program. So it it reinforces customers to stay on for a long time to increase the lifetime value. Really important because it's all about like LTV in lifetime value. I've talked about this in like other videos but essentially like the competitive advantage that uh a lot of companies will have is their customer loyalty, right? So it's like the game in town for any business and any person as like running a business whether you're an entrepreneur you're running a small mid or big business is like customer loyalty and repeat transactions for the most part right so even look at a huge company like Coca-Cola obviously like it's a global brand and everyone knows Coca-Cola but um it's kind of important that when a young person like starts drinking Pepsi or Coke like which one do they get introduced to first cuz then they have like the nostalgia effect. So like acquiring a customer is important and then keeping that customer so that you're drinking Coke forever, literally forever. So that's kind of like what I'm looking at for SoFi. They have a really low CAC, which stands for like customer acquisition costs. They have a low CAC cuz they're good at marketing and they're good at conversions. So, you know, they offer freebies upfront, right? Or they have really cheap, low friction products as we discussed. And then once you're kind of in the door, then they're cross-selling. And that's that's why like SoFi is going to become a $50 stock eventually. It's because they figured out low customer acquisition cost. They're vertically integrated, so they own the bank, so it's very like low cost for them. And this creates a competitive advantage. So what I'm looking for is really their acquisition and the biggest catalyst will be next earnings. Like what how many more customers will they acquire and how much products will those customers adopt?
I'm telling you, this is an opportunity that I've been talking about for a long time. like I hope that you made ridiculous amounts of money on SoFi. I've been talking about the stock since it was under $10 per share. So yeah, we purchased it many many times in my community. I sell puts on the stock. Yeah, if you're interested, by the way, in learning what selling puts is just type in invest with Henry selling puts. I have several videos. I have a full 2-hour course. It's free um on YouTube and you can learn like what selling puts is because I would be selling puts on SoFi without a doubt all the time weekly. That that's already what I do like every single Monday. I'm basically like guys, SoFi is still good. Let's sell some more put options. The strike price might change at what price I want to buy SoFi via selling that put. But it's pretty much a very similar strategy where we're just trying to acquire more and more shares because it's a great company.
In future videos will be uh more so along the lines of what is there what is the student loan refinancing tailwind going to look like for SoFi you know you saw Biden era uh you know there was a lot of pauses and endings to uh you know some student loan stuff so what is that going to look like because that's important for SoFi uh any partnerships with uh employers so offering SoFi a workplace uh benefit I mean will people adopt more of workplace benefits which can also boost SoFi's revenue so I'm taking a look at all these things as well as AI. You know, AI is very big. Obviously, we love Nvidia here. We we made a lot of money on Nvidia. We made a lot of money on Palunteer. Uh so, I'm looking at AIdriven financial tools as well to see how SoFi is taking advantage of that. So, you know, how they're doing that with their personalized insights. So, obviously, you go into the SoFi app and like they're like they have a lot of insights, right? They they kind of know where you're clicking, what you're looking at, and kind of like your next steps as a customer, what you may want, right? It's kind of like Amazon. they predict how much uh you're going to order of something before you even order it. Well, SoFi does something very similar. Um they kind of know which product could naturally be the next best product for you. Um whether it's, you know, automated investing or robo advisor at the very very bottom of the funnel that's the most profitable because then you're dealing with like kind of a lot bigger sums of money and stuff like that. And then last but not least, you know, in a future video, I'll probably cover uh their expansion into insurance. So building auto renters or health insurance products is going to be massive as well. It's going to continue to generate a lot of money.
So I'm bullish on SoFi. I think that it's going to be $50 a 50 well yeah it's going to be both. $50 per share and $50 billion market cap at some point. So yeah, if you made a lot of money, show some appreciation. Yeah, hit the like button, subscribe. I will have more videos on SoFi for sure. This is a stock that I really like, a stock that I hold, and a stock that I plan to invest more into. Uh yeah, so catch you in the next video.