Latest news with #AnthonyNoto
Yahoo
5 days ago
- Business
- Yahoo
SoFi Stock Has Lost Momentum. Should You Buy the Weakness or Stay on the Sidelines?
While SoFi stock (SOFI) is still up 44.5% for the year, it is down 11.4% from its recent highs. The stock had rallied following its Q2 2025 earnings release last month and soared to a multi-year high of $25.11. SoFi has, however, since lost momentum. In this article, we'll examine whether it makes sense to buy the dip or if investors should wait for a better price level. Let's begin by looking at SoFi's Q2 earnings. SoFi Reported Strong Q2 Earnings SoFi reported a stellar set of numbers in the second quarter. Its adjusted revenues rose 44% year-over-year to $858.2 million, which easily surpassed the $804.2 million that analysts were expecting. It was the highest percentage growth rate in two years, and that too off a higher base. The adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) rose 81% YoY to $249 million, significantly ahead of the $208.5 million that analysts had modeled. More News from Barchart Supermicro's Earnings Selloff Explained: Should You Buy SMCI Stock Now? Amazon's $36M Bet on Quantum Computing: What Investors Need to Know AMD Stock Slips After Q2 Earnings, But Here's Why It's a Buying Opportunity Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! SoFi Hit Several Records in Q2 The company's members rose 34% YoY to 11.7 million as it added a record 850,000 members in the quarter. The company hit several records in the quarter, but here are a few notable ones. Loan originations rose to a record $8.8 billion: Specifically, personal loan originations rose by 66% YoY while the corresponding increase in student loan and home loan originations was 35% and 92%, respectively. Importantly, the company's lending business is growing with improving credit metrics, and the Q2 annual charge-off rate in personal loans fell to 2.83% as compared to 3.31% in Q1. Moreover, the on-balance-sheet 90-day delinquency rate for personal loans declined for the fifth consecutive quarter, coming in at 0.42% in Q2. Fee-based revenue rose 72% YoY to $377.5 million: The company's loan platform business generated $2.4 billion in loans on behalf of third parties in Q2. It is a high margin, low risk business for SoFi running at an annualized originations of over $9.5 billion with an annual revenue run rate in excess of half a billion dollars. SoFi's total fee-based revenue has reached an annualized rate of $1.5 billion, which is quite encouraging. After the Q2 earnings beat, SoFi raised its annual revenue and profit guidance. I would agree that it was an 'exceptional second quarter' for SoFi, as CEO Anthony Noto said in his prepared remarks. SoFi Stock Forecast After SoFi's Q2 earnings release, several brokerages, including Barclays, Morgan Stanley, Needham, and Mizuho, raised their target prices. However, while analysts have gradually raised their target prices, SoFi stock has invariably been trading above what the average sell-side analyst believes it is worth. The stock has a consensus rating of 'Hold' from the 23 analysts as polled by Barchart. Sell-side sentiment toward SoFi hasn't changed much, and last week Redburn Atlantic initiated coverage on the stock with a 'Neutral' rating and $20.50 target price. As I have stated before, the breaking point between sell-side analysts and SoFi is the company's valuations, which are arguably higher than a traditional bank. However, the multiples should be seen in the light of its unique business, which is a blend of a bank and a tech company. As Noto said in an interview with CNBC, SoFi is seeing the 'growth of a technology company and the profitability of a financial company.' What Could Drive SoFi's Growth? I believe SoFi should command a premium over financial companies, given the mix of its business. Having the banking charter helps SoFi gain access to low-cost member deposits and lowers its reliance on high-cost wholesale borrowing. It also has a tech and financial services business, which is fee-based. Importantly, since the Financial Services and Technology Platform segment is growing at a faster pace than the lending business, its share in SoFi's revenue mix has been rising and reached 55% in Q2. A growing percentage of fee-based revenues bodes well for SoFi's valuations. The expected fall in interest rates could be a tailwind for SoFi's home loan refinance business, as 3 million of its members have a home loan with another institution, and SoFi could target them for refinancing as interest rates fall further. SoFi has also been signing up institutional clients, among others, for co-branded debit cards. Between Q1 2025 and Q1 2026, the company expects 10 such clients, which would mean incremental revenues next year. Crypto trading could be yet another growth driver for SoFi next year. SoFi's Valuations Are Not Exorbitant SoFi expected optimism over meeting its 2026 EPS forecast of $0.55 to $0.80 in 2026. At the midpoint of that guidance, we get a 2026 price-earnings (P/E) multiple of 31.8x. The multiple would fall to 26.8x if SoFi were to hit the top end of its guidance. Those who have been following SoFi for a while will agree that the company ends up beating its guidance quite often, and I don't have a reason to believe that 2026 will be any different. While SoFi's valuations don't appear mouthwatering here, they are not exorbitant eitheṛ Overall, given the kind of growth engine SoFi has been despite the higher base, I am comfortable holding the shares at these levels even as they might have hit a short-term peak. As for adding more, I would like to wait a bit. On the date of publication, Mohit Oberoi had a position in: SOFI. All information and data in this article is solely for informational purposes. This article was originally published on 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
01-08-2025
- Business
- Yahoo
1 Reason to Buy SoFi Stock (SOFI)
Key Points SoFi added a record number of members in the second quarter. Top-line growth at the online bank is actually accelerating. Management has raised guidance, showing its optimism. 10 stocks we like better than SoFi Technologies › SoFi Technologies (NASDAQ: SOFI) smashed expectations in the 2025 second quarter with accelerated adjusted net revenue growth and skyrocketing profits. All of the segments for this online bank are growing, and lower interest rates are boosting its lending segment. Sofi stock is already up 36% this year. Should you still buy it today? Yes, and here's why. Put SoFi stock on your list There are many reasons to buy SoFi stock, but one I want to point out today is its accelerating growth. As companies get bigger, growth rates tend to slow down. SoFi's adjusted net revenue increased 44% year over year in the second quarter to $854.9 million, above guidance of 31% to 35% growth and above Wall Street's expectations of $804.36 million. It's the company's highest quarterly growth rate in two years. Earnings per share (EPS) were $0.08, above the expected $0.06, and up 700% from $0.01 last year. CEO Anthony Noto attributed the breakout performance to the company's investments in its platform, driving another quarter of record member growth. It added 850,000 members in the quarter to 11.7 million, a 34% increase over last year. The company's main growth driver is its financial services segment, which was responsible for 89% of total product growth. These are largely low-cost, fee-based products that are also building the bottom line. Financial services revenue increased 106% to $362.5 million, while contribution profit was up 241%. It also enjoyed accelerating growth in the lending segment, which was up 30% year over year, maintaining its place as the largest of SoFi's segments with $443.5 million in revenue. Based on these results, management raised its full-year guidance from 24% to 27% growth to 30%, and EPS from $0.27 or $0.28 to $0.31. The company's understanding of its target clientele and upgrades to the platform are working, and SoFi still has a long growth runway. Should you buy stock 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 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 $625,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,090,257!* Now, it's worth noting Stock Advisor's total average return is 1,036% — a market-crushing outperformance compared to 181% 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 July 29, 2025 Jennifer Saibil has positions in SoFi Technologies. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 1 Reason to Buy SoFi Stock (SOFI) 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
31-07-2025
- Business
- Yahoo
SoFi Appeals to 'Overachievers,' CEO Says
SoFi CEO Anthony Noto says the company's investment in capital-light businesses has allowed it to boost revenue and offer more appealing products. Noto discusses the company's earnings with Caroline Hyde and Ed Ludlow on "Bloomberg Tech." 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
30-07-2025
- Business
- Miami Herald
Veteran trader reboots SoFi stock price target after earnings
If you played college football 30-odd years ago, Anthony Noto was probably one of the last men you wanted to see heading your way. And if he hit you hard enough, he was probably was the last man you saw. At least for a little while. While at West Point, Noto was a star linebacker on the U.S. military academy's football team and he earned All East Linebacker and Academic All-American titles and received the Toyota Leadership Award in the 1990 Army-Navy Game. Don't miss the move: Subscribe to TheStreet's free daily newsletter He led the team with 129 tackles and still ranks in the top 15 all-time Army single season tackles, and ranked third in the record books for caused fumbles in a season-including a single game high of 24 tackles in a win against Vanderbilt. After football, Noto went on to tackle the business world, a career path that included stints at Goldman Sachs, the National Football League and Twitter-before Tesla (TSLA) CEO Elon Musk X'ed it up. Noto is now the CEO of SoFi Technologies (SOFI) , which beat Wall Street's second-quarter earnings forecasts and raised its full year revenue outlook. "Our success in the second quarter is clear validation of our strategy and execution," the fintech's chief executive said during the company's earnings call. "And, as you can see, we are just scratching the surface of the tremendous opportunities for growth that exist across each of our products and segments." More Tech Stocks: Analyst who correctly predicted Rocket Lab stock surge resets forecastVerizon Q2 earnings report surprises with remarks on tax reformFund manager who forecast Nvidia stock rally reboots outlook An incredible resume, to be sure, but TheStreet Pro's Stephen Guilfoyle knew Noto was exceptional way back when he saw him back on the gridiron. "I told you this guy was good years ago," he wrote, quoting himself in his latest column. "I saw him play college ball for Army. He made literally every tackle." SoFi's stock has been storming down the field for quite a while with shares up nearly 213% from a year ago. The stock was climbing 9% at last check. Looking at the results, the San Francisco-based SoFi earned 8 cents with net adjusted revenue up 44% to $858 million. "These numbers all easily beat expectations, with EPS comparing quite nicely to $0.01 for the year-ago period, while reflecting year-over-year revenue growth of 43% (GAAP) or 44% (adjusted)," Guilfoyle said, describing SoFi as a "longtime Sarge-fave and core 'Stocks Under $10' holding. William Blair, which kept an outperform rating on the stock, said Wall Street is only starting to appreciate the extent and speed of the company's "disruptive" digital banking offerings. The firm said that it believes traditional banks will "rapidly" lose market share to SoFi as the company expands its savings, spending, lending, investing, and advice offerings "We feel great about the business," Noto told analysts. "It's operating in all cylinders. The results show that. Our outlook shows that for 2025. I think our biggest challenge beyond 2025 quite frankly is deciding what not to do." For the full year, SoFi now expects to generate adjusted net revenue of about $3.375 billion, Guilfoyle said, up from its prior guidance of $3.235 billion to $3.31 billion "and well above the $3.29 billion that Wall Street had in mind." "SoFi made waves in June when the firm announced that it would return to the world of cryptocurrency, reversing a decision to exit that market in 2023," he noted. Related: Veteran trader has blunt words for SoFi's latest move Noto told analysts that "we are at an unprecedented point in time with two technology supercycles taking place." "We are excited to once again be able to provide members with the ability to buy, sell and hold a selection of cryptocurrencies like Bitcoin and Ethereum," he said. "In a recent survey of our members who invest in crypto, we found that 60% would prefer to work with a nationally licensed bank like SoFi over their current primary crypto exchange." In addition, Noto said SoFi is also making use of artificial intelligence. "We're implementing and testing AI applications across our business from enhancing back office processes like dispute resolution and filing suspicious activity reports to improving how we interact with our members to help them get their money right and we brought on teams of engineers to drive these efforts forward," he said. In reviewing SoFi's stock chart, Guilfoyle said relative strength remains quite robust but has come out of a technically overbought condition. "Last week's high of $22.74 now becomes the pivot," he said referring to the price level calculated from the previous trading day's high, low, and closing prices. Guilfoyle raise his price target for SoFi Technologies to $29 from $26. "I use dollars and cents for low-priced stocks," he said. "SoFi is no longer a low-priced stock; hence we just use dollars, making $23 the new pivot for me. Already the high price target price on Wall Street, we are increasing our target further this morning." Related: Veteran fund manager who forecast S&P 500 crash unveils surprising update The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
30-07-2025
- Business
- Yahoo
SoFi Technologies (SOFI) Jumps as Attributable Earnings Expand 1,000%
We recently published . SoFi Technologies, Inc. (NASDAQ:SOFI) is one of the best-performing stocks on Monday. Shares of SoFi Technologies grew by 6.57 percent on Tuesday to close at $22.40 apiece following an over 1,000 percent expansion in attributable net income in the second quarter of the year. In its earnings statement, SoFi Technologies, Inc. (NASDAQ:SOFI) said net income attributable to shareholders expanded by 1,135 percent to $97.6 million from only $7.9 million in the same period last year. Revenues grew by 43 percent to $854.9 million from $598.6 million. Source: Unsplash For the six-month period, attributable net income jumped by 462 percent to $169 million from $30 million year-on-year, while revenues rose 31 percent to $1.6 billion from $1.2 billion. 'We accelerated adjusted net revenue growth to 44 percent year-over-year, the highest level in over two years, driven by record high new members, as well as new products, and an increase in fee-based revenue,' said SoFi Technologies, Inc. (NASDAQ:SOFI) CEO Anthony Noto. Given the strong semester, SoFi Technologies, Inc. (NASDAQ:SOFI) posted confidence of exceeding its full-year revenue guidance of $3.375 billion, or a 30-percent growth year-on-year, as compared with its previous outlook of 24-27 percent. 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 . Sign in to access your portfolio
