Every SoFi Investor Should Keep an Eye on This Number
To say that SoFi (NASDAQ: SOFI) has shown impressive momentum in the few years since it went public would be an understatement. In the three-year period including 2022, 2023, and 2024, SoFi's membership base nearly tripled, and its bank grew from $0 in deposits (it got its banking charter in early 2022) to nearly $26 billion.
There are plenty of impressive numbers throughout SoFi's results that are important to watch. The growth in its third-party lending platform, as well as the progress made by the Galileo technology platform are two big examples.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
However, there's one unconventional metric that is especially important for SoFi's success, especially when it comes to growing its bottom line.
One metric that SoFi reports with its earnings is the ratio of financial services products to loans in its ecosystem. Financial services products include SoFi's bank accounts, investment accounts, and credit cards.
SoFi aims to create what it calls a "financial services productivity loop," and growth in the financial services side of its business is the main way it plans to get there.
Here's how this metric has evolved over time:
Year
Financial Services ProductPer Lending Product
2021
3.8
2022
4.9
2023
5.7
2024
6.3
Data source: SoFi.
Here's why this is important. SoFi's customer acquisition costs have been high for some time. It regularly offers bonuses of $300 or more for members referring someone for personal loans, for example.
However, a larger proportion of financial services customers means that SoFi has more of a natural marketing funnel to cross-sell loan products to its existing customers. Right now, with high economic uncertainty and elevated interest rates, demand for consumer loans (especially mortgages) is low. But as this changes, a high ratio of financial services customers sets the company up to take advantage of loan opportunities in a more efficient manner.
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 $566,035!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $629,519!*
Now, it's worth noting Stock Advisor's total average return is 829% — a market-crushing outperformance compared to 155% 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 April 21, 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.
Every SoFi Investor Should Keep an Eye on This Number was originally published by The Motley Fool
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
18 minutes ago
- Yahoo
3 Reasons GIS is Risky and 1 Stock to Buy Instead
Over the last six months, General Mills's shares have sunk to $54.81, producing a disappointing 17.1% loss while the S&P 500 was flat. This was partly due to its softer quarterly results and may have investors wondering how to approach the situation. Is now the time to buy General Mills, or should you be careful about including it in your portfolio? Get the full breakdown from our expert analysts, it's free. Even with the cheaper entry price, we're sitting this one out for now. Here are three reasons why there are better opportunities than GIS and a stock we'd rather own. Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful staples business as there's a ceiling to what consumers will pay for everyday goods; they can always trade down to non-branded products if the branded versions are too expensive. General Mills's average quarterly sales volumes have shrunk by 1.6% over the last two years. This decrease isn't ideal because the quantity demanded for consumer staples products is typically stable. When analyzing revenue growth, we care most about organic revenue growth. This metric captures a business's performance excluding one-time events such as mergers, acquisitions, and divestitures as well as foreign currency fluctuations. The demand for General Mills's products has barely risen over the last eight quarters. On average, the company's organic sales have been flat. Forecasted revenues by Wall Street analysts signal a company's potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. Over the next 12 months, sell-side analysts expect General Mills's revenue to drop by 4.3%, a decrease from This projection is underwhelming and indicates its products will face some demand challenges. General Mills isn't a terrible business, but it isn't one of our picks. Following the recent decline, the stock trades at 12.9× forward P/E (or $54.81 per share). While this valuation is reasonable, we don't really see a big opportunity at the moment. We're fairly confident there are better stocks to buy right now. We'd suggest looking at one of our top software and edge computing picks. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. 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
22 minutes ago
- Yahoo
Why Applied Optoelectronics Stock Is Soaring Today
Applied Optoelectronics announced Wednesday that it has completed a major shipment to a key customer. The shipment is significantly larger than any shipment in some time. 10 stocks we like better than Applied Optoelectronics › Shares of Applied Optoelectronics (NASDAQ: AAOI) are soaring today, up 7% as of 12:51 p.m. ET. The move comes as the S&P 500 and Nasdaq Composite were relatively flat. The company, which develops and manufactures fiber optic technology, announced that it has delivered an important shipment of its advanced transceivers. Applied Optoelectronics announced late Wednesday that it has completed its first "volume shipment of high-speed data center transceivers to a recently reengaged major hyperscale data center customer." The major shipment is expected to be the first of many with this unnamed data center operator and the first of its size for the company in several years. CEO Thompson Lin in a statement emphasized this, saying the shipment "represents a significant milestone on a journey to what we continue to expect to be significant business opportunities with this newly reengaged customer" adding that he "continue[s] to expect shipments to this customer and other customers to increase in line with our previous commentary of a second-half ramp." Investors were pleased to see the company begin delivering on this plan. Despite the excitement surrounding this major shipment, I think the stock is overvalued at the moment. While its price-to-sales ratio (P/S) is well within reason, the company struggles to turn a profit. It is projected to operate in the black in this coming quarter, but its earnings will be fairly meager given its market capitalization. The company faces stiff competition from large players like Cisco and will continue to need to spend considerably on research and development to keep up. Before you buy stock in Applied Optoelectronics, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Applied Optoelectronics 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 $657,871!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $875,479!* Now, it's worth noting Stock Advisor's total average return is 998% — 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 Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cisco Systems. The Motley Fool has a disclosure policy. Why Applied Optoelectronics Stock Is Soaring Today was originally published by The Motley Fool
Yahoo
27 minutes ago
- Yahoo
Why Casey's General Stores Stock Skyrocketed This Week
Casey's General Stores is quietly the fifth-largest pizza chain in the United States. It continues to grow its geographic footprint beyond the Midwest, and is now in 20 states. Leaning on its ability to make shrewd acquisitions, Casey's growth story could still be in its early chapters. 10 stocks we like better than Casey's General Stores › Shares of Midwestern pizza and convenience store chain Casey's General Stores (NASDAQ: CASY) were 13% higher this week as of 12:30 p.m. ET Thursday, according to data provided by S&P Global Market Intelligence. Reporting fourth-quarter earnings, Casey's delivered earnings before interest, taxes, depreciation, and amortization (EBITDA) and earnings per share growth of 20% and 12%, surpassing analysts' expectations. This booming profitability, paired with management's announcement of a 14% dividend increase, sent Casey's shares skyward. Casey's General Stores operates approximately 2,900 locations, primarily located in small towns across the Midwest. As it expanded beyond its roots in Iowa to its current footprint of 20 states, the company has become a 258-bagger since 1990. Despite this incredible run, I recently wrote that Casey's is still an excellent long-term buy -- despite nearing all-time highs. And again, I'd argue it still looks pretty promising even after this week's run-up. Growing its store count by 9% in 2025, management's expansion plans show no signs of slowing. Powered by its mergers and acquisitions team, Casey's has been expanding into new states, like Texas, Tennessee, and Florida. The reason this M&A model works so well is that Casey's typically focuses on buying convenience stores without a strong food presence. Then it adds a Casey's kitchen, bringing in its beloved pizza-making and prepared food capabilities to these new locations, boosting profitability and generating a strong return on its investment. However, even with its recent success, the company's valuation remains reasonable at 17 times cash from operations (CFO). For example, whereas Casey's has grown its net income by 19% annually over the last decade, Domino's Pizza has only grown its profits by 14% over the same time, yet trades at 23 times CFO. Before you buy stock in Casey's General Stores, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Casey's General Stores 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 $657,871!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $875,479!* Now, it's worth noting Stock Advisor's total average return is 998% — 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 Josh Kohn-Lindquist has positions in Casey's General Stores. The Motley Fool has positions in and recommends Domino's Pizza. The Motley Fool recommends Casey's General Stores. The Motley Fool has a disclosure policy. Why Casey's General Stores Stock Skyrocketed This Week 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
