SoFi's (SOFI -0.13%) stock has been in a steady decline since November, but there are encouraging signs ahead. In this video clip from "Ask Us Anything" on Motley Fool Live, recorded on June 3, Fool.com contributors Dan Caplinger and Matt Frankel discuss some factors that should make the fintech company more attractive to investors.
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Dan Caplinger: The other one that I don't own but I look at and I'm a customer is SoFi ticker S-O-F-I it's the former Palihapitiya, [laughs] I never get that right. It's just yeah. The SPAC gone public and they've got a good business model. It's a good platform. The interest rates are really good. They are brutally efficient at trying to cross-sell. I think I get marketing stuff every day. It's like do you want a personal loan? Do you want to sign up for this? Do you want to sign up for that?
Matt Frankel: I like SoFi. We talked about that on yesterday's fintech show. They recently became a bank. One of the big perks of that that they are really using to their advantage. You talked about all that marketing and that's what reminded me of it. Being their own bank lets them set their own interest rates which they weren't allowed to do before. They used to have to ask a third party for permission to raise say their savings deposit rate but by a point or two.
I keep getting emails saying mortgage rates went up to five-point whatever percent this week. We just lowered ours. Give us a call. They don't have to care about making money as much as the other banks do right now so they can really compete a lot more on interest rates. SoFi is an interesting one and it's only down 30% from its SPAC price which makes it a great performer in the SPAC market these days.
Caplinger: Yeah, accept...Come on man. [laughs] It was up in the 20s for a while.
Frankel: Well some of these other ones I could name a few others that I own on. Nextdoor (KIND -5.21%) is one that I own and still believe in. That was up at almost 20 after they announced the merger and now it's in the threes. SoFI is not in as bad shape as a lot of the other SPACs. I think it's because it's on the cusp of being profitable, unlike a lot of the other ones. There's a clear path to profitability.
