Martin Shkreli Looks At The Latest Sofi Earnings Report

Intro let's see I maybe have time for one more stock Sofi was the request I haven't looked at this in a while I remember when my friend created Sofi um I was having dinner with him in San Fran and he was like I've been thinking about Banks and like why Banks don't have competition with you know for check companies and so forth and about a year this guy named Mike Kagney a year or two later SII was born pretty crazy right and then he uh he got fired over some sexual harassment thing um I should catch up with him so yeah let's just take a quick look at the markets as well since people are so panicked looks like some of the panic has subsided pretty substantially um again I I would just ask you to do the thought experiment of do you think that that red that red line black line thought experiment I gave you a minute ago that I drew on my stream if you watched it is a slow larger decline scarier to you than a fast smaller decline Cline would you rather be down 25% slowly or 20% instantly for a lot of people that is a tough question um and the stocks that are down the most today are the ones that have kind of been up the most over the last year five years and if you notice there's like a bunch of SAS companies that normally to carry very big multiples like Viva CRM um now Serv now um all like the Quint essential SAS companies even like workday they're not down very much today and then the defensive stocks in like biofarma some of them are not down at all like Amgen or ABV or I don't know Bristol Myers or some of those companies so I don't know if you're really panicked it it says more about your portfolio than anything else um all right let's do Sofi I've Sofi never really looked at this company other than meeting the guy who started it before he started and hearing him talk about potentially starting it um it's kind of kind of not been a great company um it's sort of a disappointment they they raised a lot of capital and didn't kind of didn't create very much um it was it was a it was a weird pitch too it was like they really wanted to go after like do you guys remember this like the like intelligencia it was like very odd like they they were specifically targeting a market of like I think I just pulled up this thing I guess I'd rather look at the 10K when I'm first looking at a company than the 10q um just because I've never I've really never looked at this company in my life so this will be like new experience so you guys should be able to do this as well or better than me so again I look at the market cap is 6.4 billion they have 977 million shares outstanding uh $660 stock price so almost a billion shares outstanding exactly so pretty easy to calculate the market cap in your head um the cash is going to be weird because it's a bank so Financial stocks are a little little weird let's take a look um well 10K usually has the financials like kind of at the end so I'll start at the end um and here it is um this is the like weird condensed balance sheet because of the parent so let me let me go up a little bit to the real balance sheet oh they have a bunch of crypto it looks like that's really funny they're they're on they're holding it on behalf of their users but that's funny so maybe they they've been leaning into crypto I don't know but they're supposed to be like the millennial bank I think that was their like Strat [Applause] you know at the end of the day A bank's a bank and every every bank is kind of an online bank um just because you have you costly kind of like the Amazon thing like you have costly um branches all right let's take a look so it's it's weird you have to like when you look at Banks you have to sort of think about the balance sheet a little bit differently than you normally look at um non-banks because you sort of you're holding a bunch of assets for the customer and those you kind of can't mess with too much you obviously make loans and stuff but that's your business but you have to have a very like carefully managed book so you can see they have 21 billion of loans and 18 billion of deposits deposits are your liabilities they are it looks like they're a little levered um but again in Banks it's not always as it appears so I guess like things you want to look for and soai because it's not a Traditional Bank it's like relatively new bank I'd be looking for things like more like Tech like metrics like Loan Book customers balances things like that [Music] um they have a huge amount of growth in their loan book I hope that's a good [Applause] thing it's actually super impressive I wonder where that came from so they did 352 in loans in 2021 then 759 in 2022 and then almost 2 billion so they doubled every double loans like every year stock has been dog though not every loan is the loan you want to do but it's very rare to see Revenue go through the roof like that very interesting [Applause] yeah so Sofi can kind of be a hidden Hidden Gem here looks kind of exciting uh I'm not a financials analyst though so like I have to talk to some friends that actually do this for a living is like you can kind of look at any stock um if you know stocks relatively well but financials are a little weird a little little difficult they're kind of an exception to that um financials can be a Financials bit of a quad me if you don't know what you're doing okay so I see they have non-interest income as well so they do originations for others oh I see okay this makes more sense to me so their loan books is is profitable but they they have other business as well so originations Servicing this is a like a really intense company I have to [Applause] origination okay so around 800 million in this like other business but now we're going to deal with the costs of the company which are massive so cost of operation I guess you call that GNA that's so weird they have they have a GNA line and a operating like cost of operations line I'd be very curious to ask their CFO what that means Okay so [Applause] [Applause] I guess that according to this at least they're they break even but given their sort of growth trajectory you know I Members would imagine they could be very profitable but I'm still trying to understand the the business model in the first place huh the number of members they have which is like I said probably one of the key things I would track looks like it's going up metronomically I want to track that going back a few years but that's unbelievable thank you so much for Sugg gesting this who is that um our little godell Community um Henry um yeah Sofi looks really really interesting it's odd because like I would imagine the financials guys kind of want to like the bank analysts on Wall Street are very weird and then the tech guys probably don't want to look at it because it's a bank so doesn't have you know the right analysts kind of looking at it and that that might reveal you know it to be undervalued um D what's up oh hey uh I'll be short because I'm not uh a subscriber uh I don't want to take take away time from those people okay so you you mentioned you had like a tool that's like an alternative to uh Bloomberg yeah I'm just curious like could I if somebody had that tool right in front of them could they use it to like look up whether or not I think for the assana you know dollar sign ASA in stock which is kind of like a SAS yeah Dustin mosit his company yeah did did he um buy like a billion dollars of that stock back like yeah he's he's uh he's been buying Assa for years yeah okay because I couldn't find that uh yeah I mean you could look on SEC doov for that um as well but yeah no the moscovitz has taken his Facebook Fortune given a bunch of it to this effective altruism cause to stop AI for whatever reason which he has nothing to do with and then which is weird because like his products have like a announcement that said hey we got some AI stuff coming out you know yeah the thing that was interesting is like I could have score it that that news came out like a month and a half before you know like all the chat GPT stuff came out no I mean he's been buying Assa for the last five six years he he's made more money in Facebook than the entire market cap of a times 5 like the guy's got more money than God but the S just kind of sucks um yeah it just seems like in retrospect like I would have if I just spent a a billion dollars on a stock and then Nvidia shoots up I would have been like feeling some Pomo uh yeah I mean when I saw him buying all that assuna stock I was impressed myself I was like wow if if he's willing to buy a ton of aun stock then maybe I should too and then it's like well I don't know what his like hunger is to make AA really successful I have no clue you know um it sounds like he's living the billionaire life more than he is the anything else yeah my uh a question was actually originally going to just be just generically like what's your thoughts on like the long-term Stock Exchange that came out oh yeah that sounds really cool um but there's like only two companies on it or something I imagine it's going to take a lot of time before yeah you know before they can get too many companies on there but um I think citadel's behind it amongst others so there's enough sponsorship there man this uh this Sofi thing looks amazing hey thanks for taking my question yeah yeah of course um dude this Sofi is uh how much do I want to look at a bank stock like negative 100% but like this is [ __ ] incredible look at this guys the this is the amount of users Sofi has right they call them members I guess tell me it's literally gone up every quarter isn't that interesting for that's amazing I think could be could be a really good buy I appreciate you putting that on my radar Henry that's now the book the book value is is the problem right so Bank stocks tend to trade on something called tangible book or book value um but in a lot of ways like you could argue this isn't a bank stock but Bank guys would argue um no uh all Bank stocks are Bank stocks and that's that you got your book and that's it and so most Bank stocks trade at Book value they don't trade a above Book value and right now Sofi is trading above Book value but they also look like a tech stock in a lot of ways this isn't a somebody's asking me Conspiracy Theory if I have a conspiracy theory about this crash well I that's about the stupidest question you can ask um cuz this this isn't even a crash one and then two I mean alassian is up today so if there was a crash every stock would be down but there's a bunch of stocks that are that are up today so or not or down very little so I wouldn't I wouldn't get too carried away um and no there's no Conspiracy Theory what what do you want me to say black rock is meeting with uh the Rothchilds or something like that um so yeah Sofi is really interesting I I do think the whole like Book value thing is is pretty much the most important thing in a bank stock so like but if your users are doubling maybe it doesn't really matter the old way of like looking at bank stocks cuz banks have a hard time growing uh their deposits and they're typically like somewhat stagnant and the loan performance matters more than the deposit growth and like companies like Bank of America don't grow deposits very much um because there's only so many branches you could open whereas like here um uh deposits are growing like 100% year-over-year like several years in a row so interesting yeah I don't really look at Short interest too much unless it's like crazy high I don't think short interest is that that too crazy and I I wouldn't call this Black Monday let me take a couple more questions and I'm G to go to work go to my day job