News: With Debt Ceiling Deal, SoFi Is Ready for Liftoff

Thursday, June 1, 2023

With Debt Ceiling Deal, SoFi Is Ready for Liftoff

By Andy Swan

SoFi Technologies (SOFI) is off to the races.

Finally.

The debt ceiling deal in Washington has ended the three-years-and-counting freeze on student loan payments – an embargo that was gutting a key segment of SoFi's business.

Last quarter, SoFi's student loan unit counted 525 million in revenue – more than 75% less than the 2.4 billion recorded pre-pandemic.

Investors immediately understood what this news means: The San Francisco-based SoFi can ramp up its top line – even as the tech-focused financial services firm capitalizes on the other hefty opportunities it sees.

SoFi shares jumped 11% the day the agreement was announced.

But we saw this coming.

We "saw" this rebound long before the debt-ceiling agreement was reached. In fact, even before the debt-ceiling "crisis" began.

Early in May, our data led to a "double-down" call on our existing bullish SOFI "buy" call.

You can see the whole story in this chart… and what SoFi shares have done since then.