SoFi's re-entry into crypto unlocks a massive new market, with stablecoins and crypto trading poised to drive significant revenue growth. The fintech exited the crypto business in late 2023 due to regulatory pressures to gain the banking license. Crypto fintechs are currently trading at much higher valuation multiples due to the scalable and capital-light business models.
SoFi's digital platform enables full-service banking at lower costs, driving strong member and product growth with impressive revenue expansion. The shift from loan-based to fee-based revenue makes SoFi less sensitive to interest rates and more resilient than traditional banks. Despite appearing overvalued by traditional metrics, SoFi's high growth rates and profitability potential justify a bullish long-term outlook.
SoFi's member and product growth is accelerating, powered by its efficient cross-selling model. This "secret sauce" is driving massive, underappreciated earnings beats. The strategic pivot to high-margin, fee-based revenue is de-risking the business. This capital-light model now comprises 41% of total revenue and is expanding rapidly. The Loan Platform Business unlocks a massive, untapped $100 billion market. It monetizes declined applications with high margins and no credit risk, fueling future growth.
SoFi Technologies, Inc. (SOFI) closed at $17.64 in the latest trading session, marking a -3.13% move from the prior day.
SoFi Technologies (SOFI) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
SoFi Technologies (SOFI) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions could translate into further price increase in the near term.
SoFi Technologies (NASDAQ: SOFI) has been in the news recently, and for valid reasons. The stock has jumped 16% in just a week, reaching a new 52-week high of $18.
SoFi Technologies Inc.'s (NASDAQ: SOFI) chief executive officer recently stated at a conference that the fintech company has targeted 30% member growth and 20% revenue growth.
OPFI's soaring profits and lower risk make it the fintech stock to watch, while SOFI's growth is tempered by valuation concerns.
SOFI's 21% rally reflects investor optimism, but with a 41X P/E, some are questioning if the stock's run is overdone.
SoFi Technologies stock is up 27% since the initial $20 target, fueled by $315M in fee-based revenue, up 67% YoY. Fee income now represents 41% of total revenue, with strong growth in interchange, loan platform, and FSPL segments. Q2 FY 2025 guidance calls for $801.94M revenue and $0.06 EPS, with 6 upward EPS revisions and 7 revenue upgrades.
The fintech says it will offer stablecoins and new staking features at a later date.