In this video, I will be talking about SoFi Technologies (SOFI -2.95%), some new info about the banking license, and a comparison to Block. You can find the video below, but here are some of the highlights.
- Down 45% from its recent highs, SoFi Technologies is now valued at $10.6 billion and trades at 12 times its trailing-12-month (TTM) revenue while having grown revenue over 35%.
- Block, on the other hand, is valued at $57 billion and trades at 3.4 times TTM revenue while having grown revenue over 26%. Putting both companies in the same basket does not make sense, as one generated over $16 billion in revenue last year while the other is still shy of $1 billion in yearly revenue.
- With regard to the potential banking license, some senior employees have "SoFi Bank" on their LinkedIn profiles, which further indicates that the announcement might be made sooner rather than later.
- With earnings season around the corner, investors will be eager to get some answers soon. For the time being, nothing indicates a short-term bounce for the stock unless the announcement of the banking permit is made.
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*Stock prices used were the closing prices of Jan. 13, 2022. The video was published on Jan. 14, 2022.