Previously, I recommended waiting for SoFi Technologies (NASDAQ:SOFI) stock to come down. Lately, however, I’ve been getting more and more bullish about SoFi Technologies.
Soon, the share price could revisit its all-time high and it’s not a bad idea to hold a small position now.
More and more, SoFi Technologies is proving itself as an industry disruptor but also as a legitimate bank. Traditional, inflexible banks should feel threatened by SoFi Technologies, which could steal significant market share in the coming quarters.
So, let’s look at the news items that made me feel more optimistic about SOFI stock. Ultimately, you may decide to buy a few shares in anticipation of a potential year-end rally.
SoFi Will Underwrite an Important IPO
There are several times when SoFi Technologies showed that it’s a legitimate bank. The company has earned a national banking charter, and has provided its checking and savings accounts with access to up to $2 million of Federal Deposit Insurance Corporation insurance.
SoFi Technologies acquired mortgage lender Wyndham Capital Mortgage. More recently, SoFi Technologies did something that you might expect big, legitimate banking firms to do: underwrite a highly anticipated initial public offering.
Specifically, SoFi Technologies is underwriting the IPO of grocery delivery app provider Instacart. I fully agree with the Financial Times report, which states, “Winning a role on one of the most high-profile US listings of the year is a milestone for SoFi.”
I expect the Instacart IPO to be a hot topic in the financial media. However, let’s not ignore the implications for SoFi Technologies.
Clearly, SoFi Technologies is entering the big leagues in the banking sector. This is a reason to expect a move higher in SOFI stock, maybe not today or tomorrow, but definitely in the long term.
SOFI Stock and the AI Revolution
In 2023, many people are interested in getting portfolio exposure to the AI trend. Believe it or not, you can actually achieve this if you invest in SoFi Technologies.
SoFi Technologies isn’t building a generative AI application or an AI chip. However, SoFi is leveraging the power of machine learning to improve the customer experience.
Here’s something that SOFI stock traders might have missed. In SoFi Technologies’ second-quarter 2023 financial report, the company acknowledged that it is “seeing strong adoption of new products, including Konecta, our AI natural language customer service bot.”
In addition, SoFi Technologies disclosed some notable stats pertaining to Cyberbank Konecta, a conversational AI engine developed by SoFi subsidiary Galileo. With the help of Cyberbank Konecta, SoFi Technologies found that customer service performance “has improved by 7%.”
Customer service response time improved “by more than 65% to drive customer satisfaction.” Also, “50%+ fewer people” dropped out from SoFi Technologies’ customer service chat.
With the help of Cyberbank Konecta, SoFi Technologies has increased customer service agent efficiency and enhance member/customer engagement. It just goes to show that SoFi Technologies is fully engaged in the machine learning revolution – and that’s good news for the customers and the shareholders.
Hang on, But Be Patient With SOFI Stock
I’m not claiming that the SoFi Technologies share price will zoom to $25 this year. I’m feeling more optimistic about SoFi as I discover what the company’s been up to lately.
What I’ve found is that SoFi Technologies is a legitimate financial firm. At the same time, SoFi is on the cutting edge of AI technology.
Therefore, I feel that it’s better to buy SOFI stock sooner instead of later. The gains will come in the long run, and patience will reward the true believers in SoFi Technologies.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.