Shares of Sofi Technologies (SOFI) has started trading today, here’s what you need to know about the popular fintech service.
Shares of Chamath’s SPAC, rallied close to 25% ahead of the May 27 merger vote, closing at just more than $20.
SPACs are notorious for their boom and bust cycles. Few, if any, have managed to break this mold and become solid investments after the dust has settled.
SoFi’s financial growth and margins are impressive. And it has a solid management team to steer it to further prosperity. Its financials are a picture of health, and it has an asset-light model in a high-growth space.
What you need to know about SOFI stock
- Social Capital Hedosophia is the fifth blank-check company from Chamath Palihapitiya. On Friday, the company announced it had closed its SPAC merger with SoFi.
- Shareholders approved this transaction on Thursday, May 27.
- Today, SOFI stock will begin trading independently on the Nasdaq and IPOE stock will stop trading.
- Warrants from the merger will start trading as SOFIW.
- As a result of the deal, SoFi now has $2.4 billion in cash. The fintech company plans to use this to help expand geographically, as well as build on its digital platform.
- Broadly, SoFi seeks to become a one-stop shop for its customers. This is because the company offers solutions for borrowing, saving, investing and more.
- Harvey Schwartz and Dick Costolo will also join the SoFi board of directors. Schwartz previously served in executive roles at Goldman Sachs. Costolo served as the CEO of Twitter.
- Current SoFi CEO Anthony Noto will remain in his position.
- Investors should note that SoFi shared its first-quarter results just last week. SoFi beat its own expectations, reporting revenue of $216 million.
- Importantly, this represents 151% year-over-year growth.
- SoFi also shared earnings before interest, taxes, depreciation and amortization (EBITDA) of $4.1 million.