User growth is up 113 year over year and revenues made their way up from 114 million last year to 231 million this year, 113 in user growth. Revenue in just a year is something that banks have failed to do for centuries. So far, his quarter two result is rewriting the history of finance as a whole, but you cant have a celebration without a little drama, so fi also reported 165.3 million dollar net loss with noto, explaining that this is due to one time expenses according to sofis cfo. Chris lapoint this caused investors to sell their sofi stocks, which caused them to plummet down to the 14 price. At the time of recording this video short sellers are looking at the situation as if they have found a gold mine and whether they are right or wrong. It is obvious in the hands of the mighty nodo and his royal committee to prove these idiots wrong. Hello and welcome to wealth. Gamut today were going to talk about the price drop of sofi stock and these short sellers, taking advantage of the situation and just to remind you, were not financial advisors, and this is not financial advice. Please hit that like and subscribe button and hit that notification bell. As we love to update you on anything and everything about the finance space lets get started, remember when the tesla shorts lost about 40 billion dollars last year, yeah youre right were talking about the 743 percent gain or for the short sellers, the 743 of pain caused By elon musk in the tesla stock, well, it looks like the sofi short sellers definitely took some notes because, in terms of the short percentage of the float it has dropped significantly, which well touch on later on in the video from the highest 28.
2 million dollars. In short interest in a two month period, its now down to 13.7 million doing the math its a 42 decrease, so are the short sellers, retreating back now that they see the crystal clear growth of this stock before we head on what exactly do these short sellers? Do short sellers basically borrow stock from brokers and sell it to people who will buy these stocks at market price, in the hope that these stocks will further decrease in value and buy it back at a lower price and return them to the brokers? In other words, short sellers are basically betting on the failure of a company getting profit by the leftover price when they get to buy their borrowed shares at a lower price, so whats, causing the short selling lets put the spotlight on sofi rapid decline in sofa stock Price, following its lock in period had these short sellers go merry go round in the past few months and they have all the more reason to celebrate as sofis stock price dropped even more after it reported its second quarter of 2021 result. Its stock price fell 10. A day after the second quarter, results were out, but lets focus on so far. Here you can see the amount of short interest before and after it debuted. On june 1st, you will see that this was a heavily shorted stock, but more than half of it later vanished in the first half of july, tables have turned and the so called overvalued stock is now going bullish as social capital founder, pauli hapatia, said.
Sofi has the opportunity to completely transform the consumer financial services industry with its digital first ecosystem of offering so one reason for the decline is the lock up period expiration after going public. The shorts are taking advantage of the weakness now, as a lock up period expires. Investors are trying to sell off, especially the early ones or the big time shareholders who got restricted from selling their shares. After june 1st, as these investors sold stock, sooner than expected, selling pressure has increased because there is more supply of shares in the market. This then caused a decline in price and 83 of the available shares in the last few days of june, which continued through july. So basically, the dive in prices from the high 20s was both from the pressure coming in from the early investor sales and the short sellers who took advantage of the scenario through dark pools who get to buy huge orders of shares in an inaccessible medium to the Public the problem with people who are investing their money is that they dont understand the economics of the fintech business a decade or two from now, as what the legendary warren buffett would say, i have an old fashioned belief that i can only should expect to make Money and things that i understand and when i say understand i dont mean to understand you know what the product does or anything like that. I mean understand what the economics of the business are likely to look at.
Look like 10 years from now or 20 years from now sofi stocks short seller might be having a toast and drinking wine at the moment, but that shouldnt be for long fintech. Companies are the future of financing and we believe that sofi holds the biggest pot in that industry. One sign that the short sellers could be leaving soon is the bank charter approval. One of sofis major moves is applying for the long awaited bank charter for the short sellers, theyre, probably hoping for it to be denied, but anthony noto is not the type to sit back and relax hes, putting his balls on the line and making sure he does. Whatever it takes to get it done, noto along with sofis dream team will not stop until the bank charter gets approved. Sofi is a diamond in the making and we believe its only a matter of time for their stock prices to skyrocket. They have done 101 increase in their revenue, they have greatly increased their products and services, both in just a period of one year, and they could probably do that with their stock price too. But what comes up must go down. What must go down must come up, and so fars only direction at this moment is going up. So fars members are growing each day. That would mean more people using their products and services, resulting in compounding revenue. Another sign that the short sellers could be leaving soon is a student loan forbearance expiration one of sofis core lending products, which are the federal student loans, will now produce inflows for sofi at the end of january 2022.
. This expiration of the forbearance period will continue the halted payments of students and this revenue stream can definitely be one of sofis ways to get ahead of its competitors. For all of you short sellers out there, good luck, its not too late to rethink your decisions, and we so fi bulls appreciate you for lowering the price, so we could load the boat and thats all for today. We hope you enjoyed the video wed love to know how many shares youve bought since sofis price drop and how long youre willing to hold on to that.