Latest news with #SoFiTechnologies
Yahoo
3 hours ago
- Business
- Yahoo
Will SoFi Reach a New All-Time High Before the End of 2025?
SoFi's all-time high was about $27 per share, but this was during the 2021 SPAC bubble. More recently, SoFi peaked at $18.42 in January, after several years of largely being ignored by the market. If SoFi's business proves resilient in a challenging economic climate, it could certainly reach a new 52-week high. 10 stocks we like better than SoFi Technologies › SoFi (NASDAQ: SOFI) has been a strong performer for investors, with shares up by 135% over the past year, but the stock is still a long way from its all-time high. SoFi's all-time high came in 2021, shortly after it went public through a special purpose acquisition company, or SPAC. Shares peaked at about $27, but it's fair to say that this was mainly due to the speculative bubble that was going on, especially in SPACs, at the time. By virtually every metric, SoFi is a far stronger business today than it was back then. Since 2021, SoFi's membership base has more than tripled, the company's banking deposit base went from zero to more than $27 billion, and SoFi went from an adjusted net loss of $484 million in 2021 to an expected profit of at least $320 million in 2025. However, in the post-bubble world, SoFi's stock price reached a more recent high of $18.42 per share in January 2025, which is less than 30% above the current share price. Let's take a closer look at the momentum in SoFi's business, the catalysts that could take it to the next level, and whether SoFi could reach a new high later this year. As mentioned, SoFi has grown dramatically since becoming a public company, but it isn't exactly running out of gas just yet. In the first quarter of 2025, SoFi added more than 800,000 new members, its most in a single quarter ever. The company's members have 15.9 million products, 35% more than a year ago and a sequential acceleration in growth rate compared with the prior quarter. Not only is top-line growth impressive, but SoFi just finished its first full year of profitability, and on a GAAP basis, not adjusted. Margins are expected to grow rapidly for the next few years, with 2025's EPS expected to be about 83% higher year over year, according to the company's own guidance, which it has a strong history of beating. To be sure, there's a lot of growth potential throughout SoFi's business. For example, management has said that its goal is for SoFi to be a "top 10" financial institution, and it would need to more than 10X the size of its banking business to earn a spot on the list. But there are some catalysts that could be especially big growth drivers over the next few years. One example is the company's lending platform. Of course, SoFi began its life as a lender, but it has just recently started to branch out in ways that don't involve it making loans directly to borrowers. SoFi has been rapidly scaling its loan platform business (LPB), which originates loans on behalf of third-party banks or refers customers to other lenders if they don't meet SoFi's criteria. This is a rapidly growing capital-light stream of fee income. There's a huge opportunity to grow the loan platform, especially when we look beyond the bank's traditional core lending products of personal loans and student loans. Specifically, SoFi's home loan business, which has more than quintupled in size since 2023 (but still remains small), is worth watching. There's a ton of pent-up demand for both purchase loans and cash-out refinancing, with Americans currently sitting on a record high $35 trillion in home equity. First, while I think it can (and will) get there eventually, I don't think there's a high probability of SoFi surpassing its 2021 peak by the end of this year. That level was fueled by a speculative bubble in blank-check companies, and it was at a time when interest rates were at near-zero levels, which was a generally strong catalyst for stock valuations. SoFi would need to rise by about 90% to overtake its all-time high, and that would be a stretch to happen over the next six months or so. On the other hand, it wouldn't take that much to catapult SoFi past its $18.42 peak earlier this year, which would imply about 27% upside. In a nutshell, if SoFi posts strong results in its next two quarterly reports, tariff uncertainty starts to fade, and consumer confidence rises in the latter half of the year, I believe there's a good chance we'll see a new 2025 high. If the Federal Reserve ends up cutting interest rates at least a couple of times, it would be helpful as well. Having said that, SoFi is a business with tremendous momentum and massive growth potential. Regardless of what happens for the rest of 2025, SoFi's future looks bright, and it's one of the largest financial sector holdings in my own stock portfolio. Before you buy stock in SoFi Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 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 $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% 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 Matt Frankel has positions in SoFi Technologies. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Will SoFi Reach a New All-Time High Before the End of 2025? 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
Yahoo
a day 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
Yahoo
08-06-2025
- Business
- Yahoo
SoFi Technologies, Inc. (SOFI): A Bull Case Theory
We came across a bullish thesis on SoFi Technologies, Inc. (SOFI) on Value Degen's Substack. In this article, we will summarize the bulls' thesis on SOFI. SoFi Technologies, Inc. (SOFI)'s share was trading at $13.67 as of 2nd June. SOFI's trailing and forward P/E were 30.93 and 41.49 respectively according to Yahoo Finance. An individual using a laptop to access the fintech platform to manage their finances. SoFi (SOFI) is a fully digital neo-bank aiming to disrupt traditional banking through technology, with no physical branches and a broad suite of financial products. Its growth strategy centers on expanding its user base and increasing customer product adoption. SoFi has made significant progress, growing accounts from 8.7 million to 10.9 million in just two quarters, though annual growth has slowed to 34% from 52% as its base expands. CEO Anthony Noto envisions reaching 50 million users in five years, but the focus is increasingly on deepening customer engagement. Product growth—now over 15 million—is a key but hard-to-verify metric, and while GAAP net income has been positive for six consecutive quarters, consistent growth in profitability remains elusive. The company expects stronger earnings beginning in 2025, with $320–$350 million in net income and a substantial increase to $650–$950 million projected in 2026. Trading at ~45x 2025 earnings but only 15–30x 2026 estimates, SoFi appears expensive today but potentially cheap relative to forward growth. Revenue is expanding at 20–33% annually, and SoFi trades at just 3.77x sales, versus the 6–8x typical of high-growth, sticky-tech peers. If the multiple expands alongside revenue growth, shares could double by 2027. Risks include legacy banks finally innovating and concerns over SoFi's personal loan portfolio, though most loans are resold, and tangible book value continues to rise. With forward-looking profitability, strong growth, and a potential valuation rerating, SOFI presents a compelling entry point today ahead of its 2026 inflection. Previously, we have covered SOFI in May 2025 wherein we summarized a on Substack. SoFi showed strong Q1 2025 growth with 33% revenue increase and improving profits, driven by expanding membership and financial services. Despite weak stock response, its solid fundamentals and conservative valuation pointed to potential stock price doubling by 2026. SoFi Technologies, Inc. (SOFI) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held SOFI at the end of the first quarter which was 14 in the previous quarter. While we acknowledge the potential of SOFI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
Yahoo
04-06-2025
- Business
- Yahoo
SoFi Technologies, Inc. (SOFI) Stock Falls Amid Market Uptick: What Investors Need to Know
In the latest trading session, SoFi Technologies, Inc. (SOFI) closed at $13.46, marking a -1.46% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.01%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 0.32%. Heading into today, shares of the company had gained 7.31% over the past month, outpacing the Finance sector's gain of 3.54% and the S&P 500's gain of 5.2% in that time. Investors will be eagerly watching for the performance of SoFi Technologies, Inc. in its upcoming earnings disclosure. The company is expected to report EPS of $0.06, up 500% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $795.72 million, indicating a 33.29% upward movement from the same quarter last year. For the full year, the Zacks Consensus Estimates are projecting earnings of $0.27 per share and revenue of $3.27 billion, which would represent changes of +80% and +25.41%, respectively, from the prior year. It's also important for investors to be aware of any recent modifications to analyst estimates for SoFi Technologies, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.81% lower within the past month. SoFi Technologies, Inc. currently has a Zacks Rank of #3 (Hold). Looking at its valuation, SoFi Technologies, Inc. is holding a Forward P/E ratio of 49.96. For comparison, its industry has an average Forward P/E of 10.36, which means SoFi Technologies, Inc. is trading at a premium to the group. We can also see that SOFI currently has a PEG ratio of 1.87. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. SOFI's industry had an average PEG ratio of 0.94 as of yesterday's close. The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 138, which puts it in the bottom 44% of all 250+ industries. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. You can find more information on all of these metrics, and much more, on Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SoFi Technologies, Inc. (SOFI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Globe and Mail
01-06-2025
- Business
- Globe and Mail
Could Buying SoFi Technologies Stock Today Set You Up for Life?
Without a doubt, SoFi Technologies (NASDAQ: SOFI) has been a volatile stock. The company's stock chart in 2021 looks like a wild roller-coaster ride, and 2022 was a long slope downward from prices in the low $20s to prices in the mid-single-digit range. However, after about 2 1/2 years of trading in that single-digit range, shares have soared by 90% just in the past 12 months to more than $13. Investors who take a closer at this fintech company now will likely come away impressed. But if you buy shares today, could SoFi set you up for life? 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 » Rising in the financial services industry It has been remarkable to watch SoFi's evolution from its launch in 2011 as a business that specialized in offering more affordable student loans to its current form as a comprehensive online bank. Now, SoFi can help its customers with an array of financial needs, from checking and savings accounts to stock investing, insurance, and loans. Its growth has been exceptional. During the five-year period that ended in 2024, SoFi's customer base expanded 10-fold. And in the first three months of this year, it added 800,000 net new customers. This propelled a 20% jump in revenue year over year. Its ability to cross-sell additional products to existing customers as their financial needs evolve should drive durable growth over the long term. Based on its impressive trajectory, the business is doing a fantastic job at filling a market need. That should make investors bullish because it highlights SoFi's ability to take advantage of the weaknesses of banking industry incumbents by offering a tech-forward banking platform that provides a superior user experience. There's reason to be optimistic about SoFi's future, at least if you believe what its leadership team says. Chief Executive Officer Anthony Noto has said publicly that he wants SoFi to become a top 10 financial institution one day. It's not exactly clear what metric he's focused on -- asset base, revenue, market cap, or something else -- but it's obvious that his goal is to aim high. Focus on earnings growth SoFi stock is still far below the all-time high it reached in February 2021. The stock is currently 48% below that peak. However, its momentum has been notable in the past year. I don't believe its current valuation is expensive. The stock trades right now at a forward P/E ratio of about 41. At first glance, you might think this is not a bargain by any means. But in the context of the company's earnings growth trajectory, it looks more appealing. SoFi generated earnings per share (EPS) of $0.39 in 2024, its first full year of being profitable on a GAAP (generally accepted accounting principles) basis. The leadership team is projecting EPS of $0.68 (at the midpoint of its estimates) in 2026. After that, their outlook is that this key metric will grow at a compound annual rate of 20% to 25%. On one hand, it's best to take such forecasts with a grain of salt. Consider, though, that SoFi has exceeded Wall Street's average EPS estimate in each of the past 11 quarters. This could be a sign that management is making a habit of guiding analysts toward setting expectations that it will likely be able to beat. And it's important to remember that SoFi is a fully digital bank. It has no physical branches to deal with. Its lower infrastructure costs should make it easier for it to increase its profits in the years ahead as it scales up further. While I wouldn't go so far as to say this fintech stock could set you up for life, it does look like a smart buying opportunity right now. Should you invest $1,000 in SoFi Technologies right now? Before you buy stock in SoFi Technologies, consider this: 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 $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor 's total average return is979% — a market-crushing outperformance compared to171%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 May 19, 2025
