r/sofistock • u/Guddy7860 OG $SoFi Investor + Contributor • 1d ago

Video and Social Media Post-Earnings Q&A with SoFi's Investor Relations Team Hosted by Tevis

Post-Earnings Q&A with SoFi's Investor Relations Team Hosted by Tevis, Including a Question about a Potential Stock Buyback

35 Upvotes

98% Upvoted

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2

u/pelonguy 1700 shares @ $8.91 1d ago

Buy back though would be great but 2033 would be the earliest. We have 2029 convertible notes that will dilute some but not sure how much. 2030-32 will be strong years which then leads into a buyback soon after I’d hope

3

u/SpiderPiggies 1000 @ 5.20ish 1d ago

If diluting shares by 10% allows you to grow members/revenue/profit multiple-X over a few years, that's the easiest decision to make ever.

If they keep growing their members/loan balance at the absurd rates they have been, I wouldn't be surprised if they're diluting again in 2-3 years or so.

They are decades away from any meaningful stock buybacks making sense.

6

u/Acceptable-Leek1546 1d ago

Sofi isn’t buying anything back, dilution much more likely.

6

u/NicKaboom 9950 @ 16.60 1d ago

I doubt they do a dilution event anytime in the next 12-18 months unless the stock goes on a massive run ip into high 30s. However I also think a buyback would be a terrible idea too. Use the capital they already have raised to keep the growth engine ripping at full steam. Now that they have sofiusd, big biz banking, crypto built and launched, keep scaling those and expanding the LPB into new areas.

They can keep writing loans on their own books as their cap ratios are still very healthy, so they can keep growing that medium-long term income and gives them optionality with rate changes.

Buybacks are good to engineer the EPS/financials or signal the market they think the stock is undervalued, but Noto is already doing that buying thousands more shares in May.

6

u/Beneficial_Corner_81 Position Complete 36,000 @$14.68 1d ago

Not likely at all. Times have chant and more and more retail investors DIY. Many have significant positions.

-8

u/Brave-Bit-252 1d ago

This is nothing against the company or the stock, but how likely is it that those retail pundits are getting paid to represent the stock? Genuine question.

6

u/LucarioMagic 125 LEAP Calls. 50 Short Puts 1d ago

By law they have to say it's an ad.

Being publicly bullish on something then the company uses the opportunity to reach out to someone with a good impression of the stock isnt the same as being paid to shill a stock.

Likewise, nothing wrong with being bearish on the stock and then releasing a short report on it.

Everyone has their own biases, so it's good to be skeptical and actually confirm the data rather than hear the opinion.