Video summary
SoFi stock is currently at a critical juncture as it tests the $1850 to $19 range after reporting strong earnings that initially caused volatility but ultimately drove momentum. Although the shares recently dipped to multi-month lows around $14.85, they have since recovered and are now trading above key moving averages, suggesting a potential bottom has formed rather than a continuation of decline into lower prices. The broader market environment is supportive for this breakout attempt, with major US indices hitting new highs fueled by weaker-than-expected jobs data that may delay aggressive interest rate hikes from the Federal Reserve. This macroeconomic shift creates favorable conditions for fintech stocks like SoFi to finally break out after a period of consolidation and suppressed performance throughout much of the year.
The video highlights how individual stocks often experience long periods of flatness or stagnation before sudden, significant gains occur, using SoFi's own history as an example where shares were dormant for nearly a year before surging into double digits. The speaker notes that while some investors may find this waiting game uncomfortable, the current accumulation range allows longer-term holders to build positions ahead of what is expected to be an ultimate breakout toward the mid-to-high $20s. Other tech and fintech names like Palantir and Airbnb are also mentioned as showing signs of breaking out after extended downtrends or sideways movement, reinforcing the idea that many high-quality assets have been undervalued for too long and are poised for a rebound once market sentiment fully aligns with their fundamentals.
Beyond SoFi, the discussion extends to Robinhood, another fintech leader that is currently viewed as being in an accumulation zone following great earnings results and innovation within its platform. While crypto has faced challenges recently, limiting some of Robinhood's revenue potential, the speaker believes this factor now acts as a known floor for the stock rather than a continuing headwind, with expectations that any future recovery in cryptocurrency will serve as a major tailwind once again. The company is also praised for diversifying beyond its initial crypto focus into various other financial products and apps, laying the groundwork for potential long-term growth even if reaching a trillion-dollar market cap remains an ambitious goal far off in the distance.
In conclusion, both SoFi and Robinhood are presented as compelling opportunities given their strong fundamentals, innovative business models, and alignment with current economic trends that favor riskier assets when rate hike fears subside. The speaker maintains long positions in both stocks, averaging into buys at lower price points for Robinhood while watching closely for a decisive move above $19 to confirm SoFi's breakout pattern. Investors are encouraged to consider these companies as part of a diversified fintech portfolio that could see substantial appreciation once the market fully recognizes their value and the broader economic environment stabilizes with less pressure on interest rates.
Read the full video transcript
All right, here we are again. SoFi, here
we are again testing $1850 to $19. This
is the moment of truth for the stock as
the entire market's running. So has been
running, but it's not 100% breaking out.
And uh again, it's the moment of truth
like I said. So let's dive into it.
Break down the charts. What I'm doing,
the overall market, which oh by the way,
like I said, is doing very well. A lot
of stocks are crushing it today. So
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And now, let's dive into it. So, SoFi is
up to the low mid18s like it's gotten to
time and time again throughout this year
as the stocks now up a whopping 6 cents
on the day. 04% as every index in the US
market, which I'm sure you guys know,
especially if you saw my earlier video,
we are up massively. S&P's up half a
percent. Q's are up 1%. Same with the
Russell. Dow's up around a quarter. So,
not I guess too massive of a move for
the Dow or the S&P really for that
matter. But the point is, guys, a lot of
individual stocks are crushing it. Every
index is up and we've been hitting
all-time highs on three of the four
major indexes indices here in the US
market. We've been hitting highs time
and time again these last couple of
days. And so, since earnings came out,
has seen some momentum. This company
reported very strong numbers and in good
old SoFi fashion, it saw a big draw down
initially. Uh the stock hit about $1730
in the you know in the minutes after
earnings and then it went all the way
down to $14.85
intraday on that day. And that wasn't
even long ago. We were we're talking
like 7 10 days ago, a little over a week
ago. it got hit to about 1480, which is
where we were back in March, right? So,
this stock hit pretty much a multi-month
low, and now we're starting to run up
again, which is, you know, is a good
sign, but we're not fully breaking out
yet. We're not 100% there yet. Uh, but
the the the good thing is at least we
held 1480. That's a good sign. It goes
to show maybe we're at a bottom. this
this thing doesn't want to go to the low
teens or the you know low tens either.
So that's a good sign. Uh but we just
need to see it break through 19 20 bucks
a share. And we're here again like I
said we are above these moving averages.
We arguably have a little cup and handle
kind of in the making here. Sort of sort
of kind of right you got the cup the
handle. So let's see what we do at
$1950.
$19 20 bucks. That's what it comes down
to. And listen, if the overall market
continues to get stronger, SoFi might
break out. It might finally break out
into the end of the year, especially now
that we got a weaker than expected uh
jobs report. The labor market's looking
rough. Like I said in my last video,
make sure you guys go check that out.
So, rate hikes might not be coming as
aggressively as some think. you know, we
saw a lot of the FOMC members wanted
rate hikes this past meeting. So, the
fact that labor data is looking rough,
uh maybe if that persists, you know,
that's going to be good for SoFi in the
overall market as well, which is why the
market's running today. So, if that
continues, SoFi might finally break out
like we're seeing with a lot of these um
individual stocks. you know, some of
them that have been suppressed for a
while. They're finally starting to break
out and some of them are in different
sectors. Obviously, not the same types
of businesses as SoFi, but you're
noticing stocks that have been dormant
all year, some some at least um are
starting to move. Palunteer is one of
them. You know, we've seen this one go
parabolic after earnings. Uh it's
starting to break out of 160. You know,
we can go on and on and on about a bunch
of these stocks. and it's been a long
time coming. You know, Airbnb is one
that's been it's been uptrending
slightly all year, but now it's finally
getting some love out of the mid 100s uh
towards $200 a share. And we can talk
again on and on and on about these
companies. So, I'm telling you guys, so
far it's been flat all year, but you
know, a lot of the gains could be coming
right around the corner. And that's
that's what happens with stocks. You
know, a lot of the time, guys, when you
buy a stock, it might be flat for a long
time, sometimes way longer than you, you
know, you're comfortable with, and then
all of a sudden, it can go up 30% and it
makes up for all that time lost, if you
will. In fact, this is what happened
with SoFi, literally for for me when I
first started buying it. Uh, this stock
was flat for a little bit when I first
started buying it. When was it? Back
here in this time period. Uh, you know,
I started buying it in this pocket. I'm
pretty sure at the end of 23 um into
2024,
all throughout 2024 pretty much I was
buying SoFi, you know, in the single
digits and this thing went berserk out
of nowhere and it made up for all that
time lost. Um, it was flat for a while.
We're talking, you know, a year plus
almost. Um, yeah, pretty much a year it
was flat, slightly trickling down. I was
accumulating. Then all of a sudden,
boom, we ran to the teens, high teens,
and you know, made some good money
there. Then it pulled back, added some
more here uh during the liberation day
nonsense. Um you know, and it ripped it
ripped even higher and uh now now here
we are. So this is how the stock goes,
guys. um I've been a part of it for a
while and th this consolidation period
most likely is we don't know for sure
but it's an accumulation range um you
know it's gathering its its steps if you
will and it's allowing longerterm
holders to accumulate for that ultimate
breakout uh that I think is coming and
we could start going back towards the
mid20s high 20s uh which is where I
think SoFi honestly belongs. I think we
could be playing in this pocket right
here. So, what do you guys think about
that? Let me know in the comments uh
where your head's at. And by the way, by
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likes, hit all that stuff. I appreciate
you all for tuning in. And yeah, with
that being said, man, that's pretty much
it when it comes to um SoFi. And you got
to realize the overall market right now
is looking pretty good uh on the day
because of the weak labor market which
might sound counterintuitive or it might
be like wait what? But that's how the
market works. Uh you know with with um
forwardlooking it's pricing in the
future essentially. Oh the labor
market's weak. Oh maybe we don't get a
rate hike or it gets pushed back or we
stay flat for longer you know. Um, when
it comes to fintech, Robin Hood's
another one that's looking pretty good.
And I think Robin Hood's in an
accumulation range right now. I think
now's not financial advice, not
financial advice, but I think now is
actually a good time uh to add a little
Robin Hood. So, this stock is at 93 a
share. They reported great numbers. Um,
I was on the call. You know, they're
crushing it. They're an innov They're
probably the most innovative um fintech
platform, maybe even more innovative
than SoFi. A slightly different business
obviously. I mean, they're not the
identical business. They're not
identical. SoFi and Robin Hood. um they
do obviously have some similarity, some
overlap, but when it comes to the future
of um trading, crypto, finance, right,
Robin Hood's at the top of the game
right now. And they didn't even really
mention crypto in the call. I know they
got some questions about it regarding
how weak it's been, blah blah blah, but
it looks like the markets kind of uh
realized and accepted the fact that
crypto is in a terrible spot. That's
known in the stock market right now.
That's known in Robin Hood stock price
and it seems like it's not moving much
lower the stock Robin Hood stock based
on crypto volumes being down, the crypto
market being crappy. Robin Hood already
knows that. So now with that kind of
known that's a known factor and how much
how much worse can crypto get? I don't
know. I don't think it's going to get
much worse. So that's almost putting a
floor on the stock. A and really when
crypto does get stronger. I think it
will. It's not an if. It's a it's a when
in my opinion that's going to be a
tailwind for Robin Hood. Um so that's
why I'm long both stocks. SoFi for
obvious reasons. I'm also long Robin
Hood and uh my average is in the low 70s
and I plan on holding man. I think you
know it's it's a good looking chart. The
stock's strong, fundamentals are strong
and again when crypto picks up although
the market doesn't really care about it
right now, it will when it starts
showing in the numbers and that's going
to be a tailwind uh for Robin Hood and
I'm excited for that. And I think this
stock could genuinely be a midund stock,
maybe even higher. And they were talking
about a trillion dollars on the earnings
call. I'm not sure if you guys were
listening to it, but um they were asked,
"Oh, you know, do you think you could be
a trillion dollar company one day? I
think they're worth like a hundred
billion now." Or no, wait, what's Robin
Hood's market cap? It's got to be
somewhere in that ballpark. Uh let's see
here. Robinhood
Market Cap.
Yeah, about 83 billion. They were asked,
"Do you think you'll be a trillion?" I
mean I mean, look, there's a a long ways
to go there, but
they're they're doing the work. They're
putting the building blocks down to to
the point where they could eventually be
a trillion dollar company. That is a
far-fetched goal that's not happening
anytime soon, but they have the
foundation is what I'm getting at here.
And they and they laid it out in the
earnings call on that question um to to
be a trillion dollar company eventually.
I mean, they have so many businesses
within the business doing $100 million
ARR right now, and that's only growing
more and more and more. And again, the
crypto tailwind is going to be big. And
I'm glad that they're diversifying
their, you know, business, not away from
crypto, but they're diversifying it
beyond crypto. I mean, Robin Hood was
never just a crypto platform, obviously,
but it made up a good amount of their
revenues. Um, you know, a decent chunk.
And the more businesses within the
business, the more apps they, you know,
they introduce, more products they
introduce, the more they're going beyond
crypto. Uh, which is good.
Diversification in the financial space
is good. Uh, but yeah, when crypto picks
back up, man, it might become a big
chunk of the pie again if it grows
massively. We'll see. Um, and that's
going to be a tailwind. So, with that
being said, guys, I don't want to ramble
too much on these companies, these
stocks. Uh, that's pretty much it. What
do you What do you guys think? Let me
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