We recently published a list of Jim Cramer’s February Portfolio: Top 10 Stocks. In this article, we are going to take a look at where SoFi Technologies, Inc. (NASDAQ:SOFI) stands against other stocks in Jim Cramer’s February portfolio.
Jim Cramer in a latest program on CNBC talked about the importance of investing in companies with good management teams. Cramer said that sometimes struggling companies could be turned around because of smart leadership.
“I have to tell you, I do want more out of my stocks and just better than feared. I am tired of tech just sitting there and people arguing about it all the time. It’s getting boring to me. And that’s why I want to go far afield tonight and suggest that we look for the companies with the best new coaches, because we know a great new coach with a fresh look can easily turn around a company.”
Cramer then talked about several companies where strong leadership teams and intelligent CEOs turned around struggling businesses.
“Not all publicly traded companies are hostages to forces beyond their control, like a Chinese outfit we never heard of that has just made it so all we talk about is. Sometimes when you bring in a great new CEO, they can turn around the whole business, giving the investor spectacular gains, even when tech blinds us like mustard gas.”
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For this article we picked 10 stocks Jim Cramer talked about in his recent programs. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
SoFi Technologies, Inc. (NASDAQ:SOFI)
Number of Hedge Fund Investors: 31
Jim Cramer in a latest program on CNBC talked about the selloff around SoFi Technologies, Inc. (NASDAQ:SOFI) after the company reported earnings. Cramer said the selloff had more to do with the DeepSeek-related panic in the market than the actual results.
“No, the actual quarter was good. It must be the forecast…Why would I sell it over a forecast and not the fact that it’s doing quite well? And the answer is DeepSeek. In other words, it’s just getting caught up, caught up because it’s not because it’s had such a great year and a great move. Obviously, it’s kind of that secondary of like, well, wait a second, have we overstayed in a red-hot stock? And I think, David, the red-hot stocks today are trading as a unit, and SoFi Technologies (NASDAQ:SOFI) is being caught up in that.”
SoFi Technologies (NASDAQ:SOFI)’s latest quarterly results were solid but guidance spooked investors. For 2025, the company projects adjusted net revenue of $3.2-3.275 billion, a 23%-26% year-over-year growth, which is impressive. However, adjusted EBITDA guidance of $845-865 million fell short of the $906 million estimate. The incremental adjusted EBITDA margin of 30% aligns with the company’s goals, but it doesn’t indicate much margin expansion compared to last year.
Patient Capital Management stated the following regarding SoFi Technologies, Inc. (NASDAQ:SOFI) in its Q4 2024 investor letter:
“The top performers in the fourth quarter were once again Financials and Travel names. We’ve been over-indexed to them since the pandemic, which has served us well. We strategically added to certain financial names like SoFi Technologies, Inc. (NASDAQ:SOFI) and Coinbase Global Inc. (COIN) during the year. Both companies rebounded strongly in the fourth quarter.
Sofi Technologies Inc. (SOFI) was a standout in the quarter, climbing 95% and up 156% from the intra-day lows in June. The company benefited from Fed rate cuts and the market’s growing optimism that the economy will avoid a recession. The company continues to grow its customer count while successfully cross selling into their loans and financial service products. In the quarter, we saw the company take on a new revenue stream by originating loans for third parties, creating an attractive balance sheet-light revenue source, helping improve return on equity and margins. Sofi is early in its life cycle, currently being a small player in a very large total addressable market (TAM). With their strong management team, we believe the company will continue to deliver on their guidance of strong growth and expanding margins.”
Overall, SOFI ranks 8th on our list of stocks in Jim Cramer’s February portfolio. While we acknowledge the potential of SOFI, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SOFI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
