Okay folks, so Sofi just completely destroyed, absolutely obliterated earnings and the stock price responded accordingly. In yesterday's lovely video, we spoke about filling in the Gap to get to the next resistance at $10.52 and she already made it halfway to that goal. Sofi is a long-term stock with a huge, fundamental long-term argument that it's going to have that has had and is going to continue to have many different challenges to get to full realization. But this current earnings report is really, really nice proof of concept leading the way for Sofi to have a much bigger price appreciation over the coming weeks and months.

And I'm going to break down exactly why that is today and in return. The only thing that I ask is that you hit that ravishing like button and also don't forget to subscribe and turn on that notification Bell And as always, you should never buy any kind of stock just because we talk about it in a video. You need to be going off and doing your own due diligence and coming to your own conclusions. Remember, if you're the one taking the risk, you got to be the one doing the ultimate Frisk Okay, let's go ahead and get to work so a picture is worth a th000 words.

An overall trend trajectory of increasing Revenue finally resulted in a beautiful profit in Q4. This is the first time they've reported a profit since going public, and this is a big stinking deal. Not only did they beat by a mile, but fourth quarter net income came in at 48 million, substantially substantially surpassing analyst estimates at $9.9 million. 48 million given 9.9 million Expected, that is nearly a 5x now.

Yesterday we were talking about how if you get more and more members and you get more and more of those members using more and more products and your cross selling them and so on and so forth, well, it's just inevitable that your monetization stats will improve. But but markets very very much surprised by this because Wall Street still considers this to be a loser stock. Well, not anymore. Anybody that wasn't a Believer before today is definitely a Believer after today.

But you also got to remember the broader context heading into this report. You look at their business by segment and you compare 2023 to 2022 while the lending segment is up 21% Tech platform segment is up 12% Financial Services is up 160% Corporate is down 4% but I mean quite frankly, this is their Galileo platform which they use to service other fintech players unless fintech players entered into the industry last year because it was kind of slow. So actually, quite frankly, I'm surprised this was only down 4% But overall, you're seeing adjusted net revenue up 35% So you look at these numbers and you're thinking, okay, where else in the market are you seeing these kinds of numbers Very very few areas, especially especially in the growth Tech areas of the market and Sofi had a lot stacked against it in 2023: Massively increasing interest rates, discouraging borrowing uncertainty over Biden student loan forgiveness, increasing competition hard comps to beat from 2022 and 2021 and yet it's still managed huge growth and mostly because of this financial services sector and their diversification strategy into that area, a complete rebranding of the company. So why exactly Then is the FI of the So making so much money in financial services? Well, this is their segment that includes products like Sofi Money which is their bank account, Sofi Invest Brokerage account, Sofi Relay which is their credit score monitoring system and a lot of these products have really been bringing in the clients.

and essentially what happens is all these clients they go and they join Sofi and then all of a sudden they bring all of their Capital over to Sofi they fund their bank accounts, they start getting cross sold other products, They get more and more into the ecosystem and become more and more of a revenue generator for the five of the so. But quite frankly, I mean Sofi is making a lot of money just off them parking their money in the savings accounts. That's why their net interest income is up some 262 per year-over-year That means that Sofi switched to Fintech at the perfect perfect time. And that's because Sofi has been able to increase their deposits by massive, massive, massive leaps and bounce.

deposits increased by several billion and Sofi has shown its ability to retain those customer deposits which is a big stinking deal. I Think more so than any other report I've seen for the five of the So Sofi has built a brand name that is very, very hard to beat. It's building a brand name that is able to attract and keep deposits and with those deposits, then start cross- selling them, then start getting them involved in other parts of the business and even making tons of money just having the money within their brokerage accounts and within their savings accounts apparatus. And I Do think part of this is they have a system that offers clients up to 2 million in FDIC insurance and that was something that everyone rushed into in 2023 with all the bank collapses and whatnot.

But overall, whatever it is. whether it's brand name, whether it's trust built over years, whether it's the rates they're paying which isn't really the highest in the industry, but still pretty high, Well, whatever they're doing, it seems to be working. Let's go ahead and talk. Overall, there's four big picture reasons why markets were piling into Sofi today.

Number one is, of course, profits. They nearly 5x analyst predictions on profits, while also being in the first profitable quarter ever. Number two: Sales: Sofi's adjusted revenue for the quarter was 5942 million bucks, marking a 34% year-on-year increase and outperforming the analyst estimates at 532. At 5732 million, you also had a nice earnings per share turnaround.

The EPS of 2 cents exceeded the anticipated zero cents and was a sizable improvement from A 5cent Loss the previous year. So if you look at Sofi on an overall trend, almost every relevant metric is improving. But the reason that I like their business is because I can see the trend of members increasing and how well they're able to monetize each of those members over over a lifespan of that customer. Now there's also some weaknesses with Sofi's business model, which we'll have to get into a little bit later, but right now I just want to cover why markets are actually excited about her.

So what exactly is the conclusion here and the rundown and your takeaway? Well, in summary, Sofi's latest earnings report paints a picture of a company on the cusp of significant growth and transformation. Its successful pivot to profitability Diversified business model and strategic growth initiatives position it as a potentially pretty damn attractive buy. This latest ear report paints a very clear picture of what Sofi really is. Sofi is a company that is not only navigating the current market dynamics effectively, but also positioning itself for future growth and expansion in the fintech space.

so we can talk about Sofi until the cows come home. And maybe we will. But when you have a small cap company with huge growth, first net profit, big beats, and a market that's at all-time highs, well, it's hard not to imagine Sofi continuing to see some uptrending. and after this momentary Euphoria Spike on earnings ends Maybe By Friday I Believe you're going to see Sofi dip a bit and then you're going to see a more consistent uptrend that takes you past previous resistance at $10.50 and then to $11.70 It's pretty obvious to me, and if you look at the charts yourself, well, it's pretty obvious that member growth will continue to motivate more and more momentum in the business.

And if that happens, if that happens, investors will be motivated more and more into the stock. Which means that even at these prices, you're still early on in the Momentum now again. Sofi We've been following her for years. She's very, very prone to growth crashes if growth goes into a risk-off environment and people start pulling money from the markets, stocks like Sofi go down a lot faster.

Which means what? Well, it means that if growth crash happens all of a sudden, you could be left holding the bag for a while and we don't like that happening again. People that bought Sofi in 2021, 2022 It was painful holding all this time. The better way to go was to play it and buy the dip right or to Simply play it now when Momentum is starting to brew. But if you're going to play it now, you got to be very, very careful.

You got to make sure you have a tight stop loss. You have a strategy that employs very tight risk management. While in my opinion, she's in for another round of momentum, it could be a while now. What about risks to the business? Only a fool doesn't consider the actual risks to a business not panning out.

You can love a business, but also acknowledge that there's some problems that could pop up that could cause us to lose some Moola Well, because so much of their growth right now has to do with attracting deposits and earning income onset deposits and being able to cross- sell all that Capital other products. Well, that means that if all of a sudden interest rates start going down, what's going to happen? Well, all of a sudden a lot of that capital is going to be incentivized to go back into the market if you're paying four or five% on a savings account. Often times makes sense to have a lot of capital in a savings account, but if all of a sudden that goes down to 3, 2 or 1% and markets continue going to new and new highs. Well, all of a sudden it makes more sense to be in the stock market.

The last couple of years, you saw all this money pull from the stock market and go into treasury bills and bonds into high interest yielding savings accounts and CDs and that such and that type of stuff. But all of a sudden, if that reverses, you're going to see it pour out and go back into the stock market. which could be good for other parts of Sofi's business model. And maybe they invest using Sofi But still, it's going to be a little bit of a shakeup for Sofi's business business model, right? And it's going to be an adjustment that, perhaps in an earnings quarter or two from that happening.

you're going to see a massive, massive dump, you're going to see people say, oh, we didn't see this coming and then they're going to freak out, and then you're going to have another dip by opportunity for another rebound cycle to the upside. Now, don't get me wrong, low rates would probably pump Sofi stock up because you're going to have a hire multiple paid for fin tech companies. But at the same time, the business model behind it might see a little bit of a decrease. That is a risk in and of itself and something you got to know about.

Anyways, folks that caps off today's video: What do you think of the fire? The So what do you think of SOI Do you think she's going up? You think she's going down You think is a good deal? What do you think about the earnings? We got a lot of big stocks reporting earnings in the coming days and that's going to be a big deal for markets that keep hit newer and newer highs. What do you think is going to happen with those we love hearing from you let us know down below. Anyways, folks that caps off today's video, make sure to take advantage of that 50% off coupon code on zip Trader options coupon code hello 2024 expires Wednesday night the night of the 31st See you folks and have a good one.