San Francisco-headquartered SoFi Technologies (NASDAQ:SOFI) is a fintech market disruptor that’s still establishing itself as a competitor among U.S. banks.
Hence, don’t expect to milk SOFI stock for moonshot gains in the short term. Instead, think long-term with SoFi Technologies and be prepared for a marathon, not a sprint.
SoFi Technologies has gained attention lately, even from the likes of Mad Money host Jim Cramer. The company also has its skeptics, and investors should be able to see both sides of the debate. Nonetheless, I’m still willing to pound the table on behalf of SoFi Technologies, just as I’ve been doing for a while now.
Don’t Stop Because of the Chop
SOFI stock has been frustratingly choppy in 2023’s second half. I attribute this mainly to the market’s jitters over the prospect of higher-for-longer interest rate policy.
This doesn’t mean the stock will be range-bound forever, though. In the immediate term, SoFi Technologies should thrive as required federal student loan repayments start up again.
This is bad news for the borrowers, but it’s positive for SoFi Technologies, which helps people refinance their loans. You may have heard about annualized student loan interest rates being as high as 8.05%. Truly, it’s a win-win if SoFi Technologies can make student loan borrowers’ interest payments more manageable.
From repaying student loans to financing a vacation or just saving for retirement, SoFi Technologies is slowly but surely establishing itself as a go-to platform for Millennials and Generation Z. In that spirit of disruption and innovation, SoFi Technologies just launched a brand campaign called “All Your Ambitions, All In One App.”
I’d assert that this slogan concisely sums up SoFi Technologies’ appeal to its customers. In time, SoFi Technologies’ new marketing campaign might gain traction as the company leverages advertising opportunities in NFL broadcasts as well as a variety of streaming platforms.
SoFi Technologies Works With a Famous Credit-Card Company
Interestingly, one established giant in the world of lenders and credit-card issuers is actually choosing to work with SoFi Technologies. Certainly, it’s a positive sign when SoFi Technologies’ better-known rival is prepared to collaborate.
Here’s the lowdown. Reportedly, SoFi Technologies subsidiary Galileo is working with Mastercard (NYSE:MA) to allow lenders to offer the Galileo Buy Now, Pay Later for B2B service to small business clients.
You might think of buy now, pay later (BNPL) as something that individual borrowers use. However, businesses can also take advantage of this borrowing option. With this partnership, “banks and fintechs working with Galileo can. . . offer installment financing options to small businesses” through the Mastercard Installments service.
This, the press release emphasizes, provides small businesses with “more flexibility to make larger purchases and manage their cash flow.” Meanwhile, this collaboration could help legitimize Galileo and SoFi Technologies as facilitators of value-added lending and borrowing options.
SOFI Stock: Hold It for Years, Not Weeks
A few years ago, it might have been inconceivable that Mastercard would forge a partnership with SoFi Technologies. But here we are, and it’s now a reality.
In other words, SoFi Technologies is 100% legitimate and is truly becoming an all-in-one app and a lender of choice in the 2020s. So, don’t get chopped out of the trade with SOFI stock. Just relax and hang in there for the long run, as SoFi Technologies’ growth story is just getting started.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
