The financial sector has been hit hard in the recent stock market downturn, but banking technology company SoFi (SOFI -8.03%) has been beaten down more than most of its peers.
SoFi's valuation has become attractive, making it sensible to expect positive returns in both the short and long term. The recent selloff offers a compelling opportunity to buy SoFi, which boasts very solid growth and momentum. SoFi excels in digital banking with a growing, sticky user base and a robust technology segment, despite risks from larger competitors and high default rates.
Zacks.com users have recently been watching SoFi Technologies (SOFI) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Despite a 40% drop in SoFi Technologies stock, I maintain a 'Strong Buy' rating due to its long-term growth potential and attractive valuation. Strong Q4 2024 earnings were overshadowed by softer-than-expected guidance and broader market panic, yet the fundamentals and growth prospects remain robust. SoFi's partnerships, such as with Blue Owl Capital, and its focus on Millennials and Gen Z, position it well for future growth.
SoFi Technologies (SOFI -4.01%) is now trading at less than $10 a share, potentially making it an attractive long-term investment.
SoFi's ecosystem unlocks high LTV via product depth, data leverage, and network effects—clear moat forming in digital banking. Market is mispricing forward growth; 5x sales on 2025–2026 revs implies $14–$16/share. Macro risk caps near-term re-rating, but optionality is strong if policy stabilizes and rates ease by mid-2026.
SoFi Technologies (SOFI) muscled a rally in a highly-volatile trading session despite getting its price target getting cut over 50% by Morgan Stanley. Kevin Green warns a pullback is possible with tariffs set to add stress on loan lenders as Americans' pricing power slips.
In this video, I will talk about recent updates regarding SoFi Technologies (SOFI -10.53%). Watch the short video to learn more, consider subscribing, and click the special offer link below.
SoFi Technologies (SOFI -13.61%) is at greater risk due to its exposure to a riskier segment of the lending market.
SoFi Technologies (SOFI 3.32%) stock fell 20% in March according to data provided by S&P Global Market Intelligence. The market's been in turmoil due to President Donald Trump's tariff plans, and riskier growth stocks typically bear the brunt of volatility when the market's in flux.
SoFi Technologies (SOFI 2.37%) remains an up-and-coming star in the financial sector. Users are flocking to the digital bank's do-it-all super app, and cross-selling opportunities are driving substantial growth that could have legacy brick-and-mortar banks looking over their shoulders.
SoFi Technologies stock has surged ~32% since late February 2024, outperforming the S&P 500 index despite recent market dips. SOFI's impressive growth in membership and product additions, coupled with a shift towards a fee-based revenue model, supports its valuation and GARP status. The firm's strong EPS growth, margin expansion, and optimistic management guidance suggest a potential fair value of ~$14/share, offering an 18% upside.