Was I WRONG About SOFI Stock

Stealth Wealth Investing•Jun 7, 2026

Summary

Luke addresses the recent downward trend of SoFi stock despite the broader market hitting all-time highs. He compares the current sentiment surrounding SoFi to previous periods of skepticism he faced while buying Meta in 2022 and Palantir in 2023, both of which eventually saw significant gains. Luke maintains that stock prices inevitably align with earnings performance, and SoFi has delivered over 20 quarters of consistent beats and raises.

He highlights four main pillars for his bullishness: SoFi's exceptional earnings track record, heavily incentivized management, conservative "sandbagged" guidance, and the explosive growth of its loan platform. Luke notes that CEO Anthony Noto's massive compensation package is tied to the stock reaching $25, $35, and $45 per share, aligning his interests with shareholders. He dismisses the "bank multiple" argument, suggesting SoFi will eventually command a hybrid fintech-bank valuation.

SoFi (SOFI): Luke views the current price drop as an opportunity to "gobble up" shares, citing 20+ quarters of earnings beats. He points to CEO Anthony Noto’s incentive tiers at $25, $35, and $45 as long-term price targets. He believes the stock is currently undervalued and will eventually catch up to its strong fundamentals.

Palantir (PLTR): Luke uses Palantir as a successful example of his investment strategy, noting he bought shares under $10 while others called it "dead money." He highlights that Palantir eventually saw a significant return from its lows, outperforming stocks like Tesla. He views SoFi's current position as being very similar to Palantir’s previous consolidation phase.

PayPal (PYPL): Luke categorizes PayPal as "dead money" and a "turnaround play" that differs significantly from SoFi’s growth story. He argues that if PayPal had SoFi's earnings growth and trajectory, its stock would be at $400. He uses PayPal as a cautionary example of how turnaround plays don't always succeed compared to accelerating growth companies.

Mentioned Stocks

SOFI

Sentiment: BUYAction: BOUGHT

Reasoning: Luke emphasizes that the stock price always catches up to earnings, and SoFi has 20+ quarters of beats. He notes CEO Anthony Noto is personally buying shares and has performance targets of $25, $35, and $45. Luke explicitly states he is currently 'gobbling up' shares at these lower levels.

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PLTR

Sentiment: BUYAction: RECOMMENDED

Reasoning: Luke uses Palantir as a primary example of why investors should ignore short-term noise. He notes that he bought shares under $10 when it was considered 'dead money,' only to see it eventually achieve a massive return. He suggests that Palantir's trajectory serves as a blueprint for what he expects from SoFi.

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PYPL

Sentiment: HOLD

Reasoning: Luke discusses PayPal as a 'turnaround play' that has struggled to regain momentum, contrasting it with SoFi's accelerating growth. He argues that PayPal's failure to perform reflects the risks of turnaround investments compared to consistent growth stories. He views the stock as 'dead money' in its current state.

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