A couple of comments with regards to how you see each vertical:
Lending:
- I looked at comps with other banks (student loans: Discover Q3; personal loans: Discover and Capital One Q3)
- Based on the trends observed by those banks, and SOFI's own trends in the last Qs, it is plausible to expect estable/positive growth this quarter. I am unable to say magnitude (it would be interesting to see your assumptions for that 3% growth), but in general this seems logical
Financial Services:
- Here, I partially agree/disagree with you. I am more positive with regards to this vertical. QoQ and YoY trends clearly show that this is where growth is taking place at SOFI. Credit card growth has been healthy, and industry peers are not showing red flags in terms of credit issues. I could be wrong, but if SOFI beats this quarter, this vertical might be a posible explanation
Technology:
- Of the 3 verticals, this is the one I am the least bullish. It is already 4 years since SOFI acquired Galileo. This would have been a prudential time for them to show better growth and results. Growth rate is modest. Can it change over time? Maybe. A major announcement of a deal with a large institution could change direction.
Overall, I would expect some beat considering that the vast majority of banks have done it, and comparables in Consumer Banking segments by other banks have been healthy. I could be completely wrong, of course!
Disclosure: No position (I might trade long and short via options on extremes. Also, I might consider a long position in 2025 if Financial Services keep growing)
A couple of comments with regards to how you see each vertical:
Lending:
- I looked at comps with other banks (student loans: Discover Q3; personal loans: Discover and Capital One Q3)
- Based on the trends observed by those banks, and SOFI's own trends in the last Qs, it is plausible to expect estable/positive growth this quarter. I am unable to say magnitude (it would be interesting to see your assumptions for that 3% growth), but in general this seems logical
Financial Services:
- Here, I partially agree/disagree with you. I am more positive with regards to this vertical. QoQ and YoY trends clearly show that this is where growth is taking place at SOFI. Credit card growth has been healthy, and industry peers are not showing red flags in terms of credit issues. I could be wrong, but if SOFI beats this quarter, this vertical might be a posible explanation
Technology:
- Of the 3 verticals, this is the one I am the least bullish. It is already 4 years since SOFI acquired Galileo. This would have been a prudential time for them to show better growth and results. Growth rate is modest. Can it change over time? Maybe. A major announcement of a deal with a large institution could change direction.
Overall, I would expect some beat considering that the vast majority of banks have done it, and comparables in Consumer Banking segments by other banks have been healthy. I could be completely wrong, of course!
Disclosure: No position (I might trade long and short via options on extremes. Also, I might consider a long position in 2025 if Financial Services keep growing)
PS last q they rounded 1.6c down to 1c - if I'm correct? Hope they don't do that again
Thank you Chris :-)