The Supreme Court has ruled, and the Biden Administration is largely abandoning its fight to permanently cancel student loan debt for millions of Americans (until 2024, an election year, when the new plan will be touted). So what does this mean for SoFi, an already fast-growing fintech that expects its revenue to accelerate as federal student loan payments are now set to resume? In this report, we review how SoFi has been growing its business during the student loan pause, how it will benefit going forward, the company’s recent financial performance, valuation and risks. We conclude with our strong opinion on investing in SoFi.

The fintech company we review in this report just announced quarterly results and they were impressive. Specifically, the company reported record revenue, increasing profitability and robust member and product growth. In this report, we highlight a few strong reasons why you might want to consider investing in this opportunity, including its strong financial performance, diversified revenue streams, strategic growth initiatives, large market opportunity and its valuation. We are currently long the shares in our Blue Harbinger Disciplined Growth Portfolio.

SoFi recently sued the Biden Administration, arguing there is no legal authority to continue student loan forbearance. However, within the next few weeks, the Supreme Court is widely expected to rule against the Biden Administration’s student loan forgiveness program, which will likely end forbearance within 60 days. In this report, we review SoFi’s business and the effects of fear (from the student loan situation, combined with recent banking sector distress caused by rapidly rising interest rates) on the company’s current valuation. After discussing specific risks in more detail, we conclude with our strong opinion on investing in SoFi.