Ignore the Near-Term Headwinds, SoFi Stock’s Fundamentals Make SOFI a Great Buy Today

SOFI stock has been very weak as of late, having lost nearly all its June gains. Formerly trading at $24, the stock is now down around $16. That’s quite a huge haircut.

the Social Finance (SoFi) logo is displayed on a smartphone.
Source: rafapress / Shutterstock.com

However, despite its recent downtrend, our analysis suggests this stock’s weakness is out of sync with the fundamental usage trends on the SoFi (NASDAQ:SOFI) app.

Therefore, we see this supposed weakness as a solid buying opportunity.

SoFi’s Strengths

According to SimilarWeb, download volume of the SoFi app on Android phones shot up 8% in April, 9% in May and 25% in June. Daily and monthly active usage has been soaring as well. And meanwhile, according to AppAnnie, SoFi’s app ranking on both the Android and iOS app stores has soared in recent months.

Even Google Trends shows that search interest related to SoFi rose sharply throughout May and June.

In other words, there’s an overwhelming volume of data showing that more people than ever are using SoFi’s mobile app. The company’s reach and user base are both expanding rapidly.

So, what we’re seeing with SOFI stock is near-term stock price weakness that disagrees with strong fundamental business volume.

The Bottom Line on SOFI Stock

At the end of the day, fundamentals will always win. And SoFi’s fundamentals are great.

Their management team is amazing, their product is growing in popularity non-stop and the expansive set of tools they offer their customer base is unprecedented. All of the that separates this fintech company from the rest of the growing fintech competition and gives SoFi the best shot at significantly disrupting traditional banking.

This price weakness isn’t grounded in fact and is temporary. So, we recommend buying the dip in SOFI stock.

While I can’t say there are many companies in quite the same position as SoFi, I can say that there are plenty of high-potential companies that are lined up to become leaders of world-changing megatrends. And that’s the secret — find unstoppable innovative megatrends poised to change the world and find promising companies that have what it takes to lead that megatrend.

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And I can show you the results of all our buying in Innovation Investor, my premium newsletter advisory service where each and every company covered offers a hypergrowth differentiator that makes them just as exciting or more exciting than SOFI stock… and, yes, we do recommend SoFi stock in Innovation Investor. Consider it your freebie.

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On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s the theme of his premiere technology-focused service, Innovation Investor. To see Luke’s entire lineup of innovative cutting-edge stocks, become a subscriber of Innovation Investor today.


Article printed from InvestorPlace Media, https://investorplace.com/hypergrowthinvesting/2021/07/sofi-stock-fundamentals-make-this-a-great-buy-amidst-near-term-weakness/.

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