SoFi Technologies rides a 217% profit surge and $2B Fortress deal to scale its ecosystem and cut reliance on lending-heavy income.
SoFi Technologies stock is on a roll due to favorable crypto rulings from a bank regulator and student loan changes in the Big, Beautiful Bill Act.
SoFi Technologies' rapid revenue and member growth outpace the fintech sector, supported by a massive and expanding total addressable market. Valuation remains attractive, with a forward P/E ratio dropping to 25 by FY2027 and conservative scenarios projecting 15-18% annualized returns by 2033. SOFI's first-mover advantage and comparison to higher-valued peers like Revolut highlight further upside potential despite current market skepticism.
Originally a student loan refinancing outfit, SoFi Technologies Inc. NASDAQ: SOFI has expanded its offerings to include mortgage and personal lending, credit card products, and more. Shares of the popular fintech name have far outperformed the broader sector in recent months, returning about 35% year-to-date (YTD) and roughly doubling in the last three months.
Shares of SoFi Technologies, Inc. SOFI have surged 88% in the past three months, far exceeding the industry's 40% growth. Over the last year, the stock has skyrocketed 187%.
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.
SoFi Technologies (SOFI) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
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.