Latest news with #SoFi
Yahoo
5 hours ago
- Business
- Yahoo
After a 142% Rise, Can SoFi Stock Keep Climbing?
Shares of SoFi Technologies (SOFI) have been on a remarkable run. Over the past year, the fintech company's stock has surged 142%, driven by strong revenue growth, expanding product adoption, and a business model increasingly focused on high-margin, capital-light segments. While the recent run in SoFi stock has raised valuation concerns, its recent financial performance suggests that the stock has more room to run. 3 ETFs with Dividend Yields of 12% or Higher for Your Income Portfolio Dear Tesla Stock Fans, Mark Your Calendars for June 30 Nvidia Is Quickly Approaching a New Record High. Is It Too Late to Buy NVDA Stock? Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. SoFi added 800,000 new members in the first quarter of 2025, bringing its total to 10.9 million, a 34% year-over-year increase. It also expanded its product suite, adding 1.2 million new products for a total of over 15.9 million. This surge in user engagement helped drive adjusted net revenue to a record $771 million, up 33% from the same period last year. It's SoFi's fastest revenue growth in more than a year. What's even more notable is the shift in its revenue mix. The fintech company has made a deliberate push into fee-based, non-lending businesses that require less capital and carry fewer risks. These segments are now playing a larger role in its growth story. Non-lending revenue hit $407 million in Q1, marking a 66% year-over-year increase, while fee-based revenue rose 67% to a record $315 million. SoFi's Financial Services division continues to deliver solid growth. Revenue more than doubled to $303 million in Q1. Per-product revenue also jumped, climbing from $59 to $88 in just one year—an almost 50% increase. One of the fastest-growing areas for SoFi is its Loan Platform Business (LPB), where it originates loans for third parties. In just under a year, LPB has achieved an annualized run rate of over $6 billion in originations and is now generating more than $380 million in high-margin, fee-based revenue. In Q1, LPB added $96 million in adjusted net revenue, a 44% jump from the prior quarter. Recent deals, including a $5 billion agreement with Blue Owl, a $2 billion extension with Fortress, and a $1.2 billion joint venture between Fortress and Edge Focus, are expected to fuel even faster growth. These LPB loans don't carry credit risk for SoFi, deepening customer relationships and supporting future cross-selling opportunities. Meanwhile, SoFi's Tech Platform remains a steady contributor. First-quarter revenue came in at $103 million, up 10% year-over-year, despite a slight drop in accounts linked to client diversification efforts. Profitability remains strong, and new client wins are expected to help offset recent churn, with projections for stronger performance into 2026. On the lending side, SoFi posted another solid quarter. Adjusted net revenue rose 27% to $412 million, with a 58% contribution margin. Total loan originations reached an all-time high of $7.2 billion, up 66% year-over-year. Personal loans led the way at $5.5 billion, including $1.6 billion from third-party originations via LPB. Student loan originations increased by 59%, and home loan originations were up by 54%. SoFi was also active in the capital markets, selling or transferring $3.1 billion in personal and home loans. These transactions helped SoFi realize gains through favorable sale pricing and premium servicing fees. Even delinquent loans were monetized effectively, with $90 million sold at improved recovery values. SoFi has continued to strengthen its balance sheet. Deposits now total $27.3 billion, providing the company with a stable and low-cost funding base. This expansion has helped lower its annual funding expenses by an estimated $515 million. Looking ahead, SoFi expects to add 2.8 million new members in 2025, a 28% jump year-over-year. As SoFi's member base expands and the ecosystem deepens, it will likely see higher activity per user, which will support its earnings. SoFi's top line is projected to increase by 24% to 27%. Moreover, with profitability improving across the board, the company is well-positioned to deliver sustainable long-term earnings. While the momentum in SoFi's business will likely sustain, Wall Street remains cautious. The consensus rating on the stock is currently 'Hold,' with analysts wary of SoFi's valuation after a significant rally over the past year. SoFi is delivering exceptional growth, driven by rapid member acquisition, strong revenue expansion, and a strategic shift toward capital-light, high-margin businesses. With projections of strong top-line growth and improving profitability, SoFi appears poised to sustain its upward trajectory. On the date of publication, Sneha Nahata did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Forbes
10 hours ago
- Business
- Forbes
Is SOFI Stock A Buy After Its 15% Rally?
SoFi stock (NASDAQ: SOFI) has seen a significant increase of over 15% in the past month. This surge appears to be partly fueled by the successful IPO of Chime, which seems to have had a positive ripple effect across the broader fintech sector. After a multi-year freeze in public offerings, fintech companies like Chime are finally entering the market, albeit with more modest valuations and tempered expectations. See – Strong Growth, Improving Earnings Make Chime Stock A Buy? However, despite this recent rise, SoFi's stock, currently trading around $15, no longer appears attractive. We have a couple of key concerns that make its current valuation seem excessively high. Our conclusion is based on a comprehensive analysis comparing SoFi's current valuation with its recent operating performance and its historical and current financial health. We've evaluated SoFi Technologies across critical parameters including Growth, Profitability, Financial Stability, and Downturn Resilience. Our findings indicate that the company has only a moderate operating performance and financial condition. That said, if you seek upside with lower volatility than individual stocks, the Trefis High Quality portfolio presents an alternative - having outperformed the S&P 500 and generated returns exceeding 91% since its inception. On a separate note, see Archer Aviation: What's Happening With ACHR Stock? Going by what you pay per dollar of sales or profit, SOFI stock looks expensive compared to the broader market. SoFi Technologies' Revenues have grown considerably over recent years. SoFi Technologies' profit margins are much worse than most companies in the Trefis coverage universe. SoFi Technologies' balance sheet looks strong. SOFI stock has fared much worse than the benchmark S&P 500 index during some of the recent downturns. While investors have their fingers crossed for a soft landing by the U.S. economy, how bad can things get if there is another recession? Our dashboard How Low Can Stocks Go During A Market Crash captures how key stocks fared during and after the last six market crashes. In summary, SoFi Technologies' performance across the parameters detailed above is as follows: SoFi's performance across the analyzed parameters has been neutral. Considering its high valuation compared to the benchmark index, we believe the stock is currently unattractive. In fact, SoFi's own average price-to-sales (P/S) ratio over the last three years was 4.5 times, significantly lower than the current 5.9 times. While we acknowledge that the success of Chime's IPO and SoFi's expanding customer base might lead some investors to assign higher valuation multiples, it's crucial to consider the inherent risks. These include elevated interest rates and geopolitical tensions, both of which could impact the broader markets. Furthermore, SoFi has shown relatively less resilience to such adverse economic conditions. For investors seeking to mitigate these risks, our Trefis High Quality (HQ) Portfolio offers a compelling alternative. It applies a robust risk assessment framework to its collection of 30 stocks, which has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.
Yahoo
a day ago
- Business
- Yahoo
2 Bank Stocks to Buy With $100 and Hold Forever
Bank of America is a stable banking giant growing at healthy rates. SoFi is in high growth mode, and it's already profitable. 10 stocks we like better than Bank of America › Bank stocks are a very specific category that stands out in a number of ways. Bank stocks are typically cash-rich and well-established, and they often pay dividends. They're the kind of reliable stocks that usually add value and protection to a portfolio because they provide an essential service that drives the economy. However, investors have seen during the past few years that not all bank stocks are alike, and some can actually be very risky. If you do buy the right ones, though, they can offer high value. Famed investor Warren Buffett loves bank stocks, and they make up a large percentage of his portfolio. I recommend Buffett stock Bank of America (NYSE: BAC) and newcomer SoFi Technologies (NASDAQ: SOFI) as two excellent bank stocks to buy right now. Bank of America has slipped from being Buffett's second-largest holding into fourth place after Berkshire Hathaway sold some shares last year, but it still accounts for 10% of the total portfolio, and investors shouldn't think that Buffett has lost confidence in this favorite. It's the second-largest U.S. bank by assets, giving it incredible financial strength. It's a bank you can count on, as millions of users rely on it to manage their finances. That consumer focus is likely one of the reasons Buffett likes it so much. Deposits increased 2% year over year in the 2025 first quarter. Despite its size and millions of customers, it added 250,000 consumer checking accounts in the first quarter, which was its 25th consecutive quarter of growth. It also added 1 million credit cards. BofA has invested in its digital channels, and its platform is resonating with U.S. customers. In its global wealth and investment management group, it opened 27,000 new accounts, and assets under management increased 7% from last year to $1.9 trillion. But it's increasingly turning toward institutional services in its expanded platform, driving higher growth and beefing up the overall business, making it an even more serious contender as a U.S. financial services giant. Banks typically do well when the economy is strong and people are making and spending money, and they feel pressure as a category when interest rates are high and the economy slows. The flip side of that is that banks make higher net interest income when interest rates are higher, although that doesn't usually outweigh the negative effect of lower borrowing. Bank stocks are cyclical that way, although since the economy is in growth mode more often than not, banks do well more often than not. In the current environment, where interest rates have remained high despite recent cuts, Bank of America is back in growth mode. Revenue increased 6% year over year in Q1, and earnings per share rose 18%. Common equity tier 1 (CET1), which is an indication of stability, was 11.8% in the quarter, or well above regulatory minimums, and return on common tangible equity was a healthy 13.9%. Bank of America also pays an attractive dividend that yields 2.3% at the current price and has increased 420% during the past 10 years. Finally, it's a bargain at the current price, trading at only 13 times trailing 12-month earnings. SoFi is a completely different kind of bank. It's young (and therefore less stable), it's all digital, and it doesn't pay a dividend. It's a growth stock, and it offers a different blend of benefits for investors. Since it's just starting out, SoFi has only $27 billion in deposits, or a tiny percentage of Bank of America's $1.9 trillion. However, that's a 40% year-over-year increase, versus 2% for BofA. It's growing quickly in every way. Members increased by 800,000 in Q1, or 34% year over year, to a total of 10.9 million, and adjusted net revenue rose 33%. It's now fully profitable, and adjusted earnings per share increased from $0.02 last year to $0.06 this year. Much of the growth is coming from the company's financial services segment. SoFi has expanded its platform from its origins as a lender to offer a full assortment of financial services, and this segment, which is fee-based and low-cost, is driving growth and profitability. It offers a broad array of non-lending services like bank accounts and investing tools, and it continues to upgrade the user interface and functionality to attract new business and boost engagement. Segment revenue increased 101% in Q1, while contribution profit was up 299%. The loan business is still SoFi's largest, and although it was under pressure last year, it's demonstrating strength right now. Credit metrics are improving, and the segment is growing, with revenue up 25% and contribution profit up 15%. SoFi isn't your typical bank stock, but it's on its way to becoming one. Digital is the future of banking, and SoFi has an edge since it was created to offer digital interaction from its foundation. Before you buy stock in Bank of America, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Bank of America wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $660,821!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $886,880!* Now, it's worth noting Stock Advisor's total average return is 791% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Bank of America is an advertising partner of Motley Fool Money. Jennifer Saibil has positions in SoFi Technologies. The Motley Fool has positions in and recommends Bank of America and Berkshire Hathaway. The Motley Fool has a disclosure policy. 2 Bank Stocks to Buy With $100 and Hold Forever was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
2 days ago
- Business
- Miami Herald
Does ChatGPT offer good financial advice? 6 answers reviewed
Does ChatGPT offer good financial advice? 6 answers reviewed Everyone is crowing about the endless possibilities AI presents, namely, saving you time on mundane everyday tasks. asked ChatGPT six common financial questions and graded its answers. ChatGPT's answers in their entirety are not included here since they got rather lengthy. Each question was asked in a new chat to ensure fresh answers without history that could impact answers to prompts. Note: It is not advisable to ask an AI chatbot for specific financial information or investment advice. Questions of that nature are best reserved for certified financial advisors or consultants who can give you answers based on your unique situation. 1. 'What is the best way to save money?' Is there a secret way to save money that ChatGPT knows about that will unlock wealth? Turns out, not really. The advice was sound, but nothing groundbreaking. ChatGPT responded with: "The best way to save money comes down to one simple idea: Make it automatic and make it invisible." The AI then provided six general "steps" to save money. The steps included things like "pay yourself first," which means transferring money to your savings account before paying any bills, automating savings, opening a high-yield savings account, and creating a budget. All of this is sound advice, but it's also very general. If you were to ask ChatGPT the best way to save money, you'll likely have to give the AI some information about your finances and situation to really get a good and grounded answer. Overall answer rating: B- This was solid general advice, but nothing groundbreaking. 2. 'How do I save money living paycheck to paycheck?' ChatGPT offered some decent advice for this question: "Saving money while living paycheck to paycheck can feel impossible - but small, consistent changes really do add up. The key is to focus on micro wins, automate what you can and cut what doesn't hurt." The phrase "micro wins" is a good mindset. The AI also suggested tracking every single dollar in and out, cutting out small expenses you can live without, negotiating insurance costs and starting a small emergency fund goal to avoid relying on credit cards if something comes up. Overall answer rating: A- The answers were solid with actionable plans. 3. 'What is the best bank account out there?' ChatGPT offered a few options with this opening: "There's no one-size-fits-all 'best' bank account - it depends on what you need. But if we're talking best overall value, a few standouts consistently offer a strong combo of high interest, low fees and great tech." The AI first said that SoFi Checking & Savings is a great choice for a high-yield savings account, saying that the account earns up to 4.6% annual percentage yield with direct deposit. Unfortunately, this is incorrect. The SoFi savings account only offers up to 3.8% APY as of June 2025, so that rate is out of date. However, SoFi is still a decent option. The chatbot then recommended the Fidelity Cash Management Account, but failed to mention that you need to be a Fidelity customer (since it's a brokerage account). It also suggested the Discover Cashback Debit account since it has 1% cash back on debit card purchases, which is true. Overall answer rating: B- The answer offered some inaccurate information, but it gave a variety of reputable options to compare. 4. 'What is the best budget method?' Is there a budgeting method that has been proven to be the best? Of course not, but here's what the bot said: "The best budgeting method is the one you'll actually stick to - but if you're looking for the most effective and beginner-friendly option, the 50/30/20 rule is a great place to start." The 50/30/20 rule is an old-fashioned way to budget, and it stipulates that you spend 50% of your income on expenses, 30% on wants, and 20% on savings. But with the cost of living right now, most people don't get to choose how much income goes toward living expenses. And the living expenses category includes a lot: rent or mortgage, vehicle expenses, insurance, utilities, loan payments, groceries and so on. If you want to use the 50/30/20 rule to organize your finances, there's a good chance you'll have to adjust those percentages to what you spend on expenses and how much you can save. Other popular methods include the zero-dollar method (every dollar has a purpose) and the envelope method (placing cash in envelopes for designated expenses or separating money into separate bank accounts). Overall answer rating: C+ The answer included a real budgeting method, but it's antiquated. 5. 'How many credit cards should I have?' Credit card debt is a real problem, and high interest rates aren't helping. Here's what ChatGPT has to say: "There's no magic number of credit cards that's right for everyone - but most people do well with 2 to 3. That gives you enough flexibility to earn rewards, keep your credit utilization low and build a strong credit score, without being overwhelmed." It then suggested having a general card for expenses, another for rewards, and a third store card for a place you shop at frequently. Store-branded credit cards tend to have very high APRs and lean toward predatory, but the fact that it doesn't recommend more than two or three cards overall is a good sign. Overall answer rating: C+ Chat GPT suggested a good recommended amount, but doesn't mention much about interest charges or the real risk of credit card debt. 6. 'How much should I save for retirement?' ChatGPT offered this typical formula: "A common rule is the 25x rule: Multiply your expected annual expenses in retirement by 25. This gives you a ballpark number based on the idea that you can safely withdraw around 4% of your savings each year. "For example: If you want to live on $60,000/year in retirement: $60,000 × 25 = $1.5 million needed by retirement." Now, the 25x rule is a common guideline. However, you'll have to keep asking the AI questions and feed it information about your finances to get an answer that would even come close to what you're actually asking. If you're in your 20s, how would you know your expected annual expenses in retirement? Are you factoring in inflation? Do you already have a retirement plan, or do you have nothing saved and you need full guidance? There are way too many variables when calculating your retirement, and while ChatGPT can offer some base guidelines and formulas, this conversation is best had with a financial planner in person. Overall answer rating: D There were too many variables to get a solid answer, and this tool isn't qualified to give investment advice. Bottom line ChatGPT is best for general answers to questions, but it's not great at specifics. If you feed it information about your financial situation, it may be able to craft a budget based on your expenses or help you make a grocery list under a dollar amount, but the program shouldn't be used for things like investing or retirement advice. If you have general questions about financial topics, it can be a great tool to learn, but for real guidance, talk to a real person who's educated, experienced and certified. This story was produced by and reviewed and distributed by Stacker. © Stacker Media, LLC.
Globe and Mail
3 days ago
- Business
- Globe and Mail
Is SoFi Stock Worth the Hype? Here's What the Experts Say.
Explore the exciting world of SoFi (NASDAQ: SOFI) with our expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities! *Stock prices used were the prices of May 7, 2025. The video was published on Jun. 17, 2025. Should you invest $1,000 in SoFi Technologies right now? Before you buy stock in SoFi Technologies, consider this: Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoFi Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $660,821!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $886,880!* Now, it's worth noting Stock Advisor 's total average return is791% — a market-crushing outperformance compared to174%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
