Spec Fin Weekly

Research evidence excerpt

Spec Fin Weekly

Our BTIG Fintech Colleague Launches on Robinhood Markets (HOOD, Buy, $125 PT; Analyst: Andrew Harte, CFA): Thoughts

on SoFi: We encourage investors to read BTIG colleague Andrew Harte's initiation of HOOD, for read-throughs to the rest of

the consumer fintech space. We look at HOOD particularly within the context of competing products by SoFi. Mr. Harte's report

includes a competitive landscape map on Exhibit 20, which includes SoFi.SPECIALTY We think what Robinhood has achieved in acquiring customers in its trading and wealth management business is an aspiration

for SoFi. SoFi has attempted to draft off Robinhood's strength, providing its members capabilities in trading alternative assets

like crypto/stablecoins. We also think SoFi is being innovative with its Agentic AI "Coach" that can advise and handle automated

trading programs for its customers.FINANCE Why we think SoFi has not enjoyed as much strength as Robinhood, despite having pursued customer wealth products for a

similar time as HOOD, is SoFi's focus. The center of SoFi's product offering continues to be its Lending businesses, and we have

seen some success in cross-sell and an increase in fee-based revenues for SoFi. Nevertheless from our seat, it does appear that

SoFi has taken a more piecemeal approach to accessing new members and penetrating existing members, whereas Robinhood

has taken a more mission-driven approach towards its consumer's wealth investments.INDUSTRY HOOD now has 11 product lines generating $100mm+ in annual revenue (the HOOD initiation goes through each product line in

detail). We do not yet know what each of SoFi's product launches have achieved, and it would be helpful to SoFi's valuation to

understand the success of the SoFi Invest platform in more detail.