The Trust Layer for Market Analysts

The speaker analyzes SOFI stock, noting its volatile history with a significant drop from $15 to below $10 and a subsequent surge above $30. Currently trading around $25, the stock is up over 64% year-to-date in 2025. The speaker previously rated SOFI as an excellent investment around $10 but warned about its valuation when it exceeded $30. Current projections suggest that if the forward P/E multiple remains at 46 with $0.83 earnings per share in 2027, the stock could reach $38 by the end of next year. However, the speaker believes a decline in the forward P/E multiple is more likely. If the P/E drops to 40, the stock could reach $33; to 35, it could reach $29; and to 30, it might remain flat around $25. The speaker implies that the current forward P/E of 46 is elevated and expects it to decline.