Why I'm BUYING as Much SOFI as Possible

Stealth Wealth Investing•May 12, 2026

Summary

Luke's main thesis is that SoFi is an exceptionally strong long-term investment because its fundamental performance is disconnected from its current market sentiment. He highlights that the company has delivered approximately 20 straight quarters of consistent and improving earnings, yet the stock remains 'out of favor' with Wall Street. This creates what Luke describes as a perfect scenario for long-term investors to increase their share count at a favorable valuation. He believes that share count is what ultimately determines the scale of a portfolio's success once the market eventually recognizes the company's value.

Luke outlines a market outlook where 2026 and 2027 will be the 'big years' for SoFi based on management guidance and the infrastructure the company has built over the last four years. He acknowledges bear arguments, such as the uncertainty of whether SoFi will receive a high fintech multiple or a lower bank multiple, and the fact that the stock is currently 'trader controlled' and volatile. However, he views these risks as secondary to the company's proven ability to execute on its financial targets. He suggests that while the stock might not be a 'steal' at $4 anymore, the current price is highly attractive given the improved EPS and forward guidance.

SoFi (SOFI): Luke is aggressively buying this stock because of its 20-quarter streak of strong earnings and the positive guidance provided by management for the coming years. He argues that the valuation is currently very attractive because the stock price has declined while fundamentals, such as EPS, have actually improved. Luke acknowledges that while the stock remains volatile and a 'fintech multiple' isn't guaranteed, the long-term growth trajectory toward 2026 and 2027 makes it a primary focus for his portfolio.

Palantir (PLTR): Luke references Palantir as a prime example of a company that recently showed 'unbelievable performance' in its earnings. He uses it as a historical comparison, noting that buying high-quality companies when they are out of favor—such as Palantir when it was $6—is how significant wealth is generated. He views SoFi's current situation as analogous to these previous successful turnarounds in sector sentiment.

JP Morgan (JPM): Luke mentions JP Morgan to distinguish SoFi's business model from traditional banking, arguing that SoFi should not be valued strictly as a bank. He points out that their balance sheets, lines of business, and revenue derivations are fundamentally different, with SoFi offering much higher growth potential. He cautions against using a JP Morgan-style bank multiple for SoFi, as SoFi's growth rate significantly exceeds that of traditional banking giants.

Mentioned Stocks

SOFI

Sentiment: BUYAction: BOUGHT

Reasoning: Luke explicitly states he is buying as much SoFi as possible. He cites 20+ quarters of consistent earnings growth and a very attractive valuation following a price dip despite improved EPS guidance. He believes management is preparing for massive breakout years in 2026 and 2027. While he mentions the stock is volatile and its future valuation multiple (bank vs. fintech) is uncertain, he views the current out-of-favor status of the fintech sector as a major buying opportunity.

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PLTR

Sentiment: BUYAction: RECOMMENDED

Reasoning: Luke uses Palantir as a benchmark for excellence, noting its 'unbelievable performance' in recent earnings. He highlights it as a historical example of a successful investment made when a stock is out of favor (mentioning the $6 price point) to illustrate why he is currently bullish on SoFi.

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JPM

Sentiment: HOLD

Reasoning: Luke mentions JP Morgan primarily for comparison, arguing that SoFi should not be valued with the same multiples as a traditional bank. He notes that while JP Morgan is a different business model, it cannot match the growth levels SoFi is currently achieving.

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