$SOFI

I’m convinced that $SOFI skeptics think $100 in net income & 10 shares is better than $1,000 in net income & 20 shares. Dilution is bad because it eats into profit per share. SoFi had wildly expensive debt on its balance sheet. They raised capital to pay off that debt & lower interest expense enough for the EPS & TBV/share impacts to be either neutral or adaptive to profit per share. So the E rose by as much as or more than the S. For every single raise. This isn’t a normal occurrence. It’s a byproduct of all the balance sheet optimization they had left to do in connection with their bank charter. Going from expensive warehouse-funded credit to freely using deposits leaves a lot of room for cutting hefty, hefty interest expense. And that optimization is now largely wrapped up, so these