Latest news with #SoFi
Yahoo
7 hours ago
- Business
- Yahoo
SoFi is Playing to Win and Not Backing Down From the Fintech Fight
SoFi Technologies, Inc. SOFI isn't playing defense in the crowded fintech arena; it's going full throttle on scale and innovation to fuel profitability and dominate the next phase of financial services. In the first quarter of 2025, the company clocked a 20% year-over-year jump in net sales and an eye-popping 217% surge in net income, proving its business model is not just working—it's thriving. Now, SoFi is taking the fight deeper into the fintech trenches. The firm recently extended its $2 billion Loan Platform Business agreement with Fortress Investment Group, focusing on personal loans. This bold move isn't just about scale, it's strategic. SoFi is actively shifting toward fee-based revenues that require less capital and offer more flexibility, signaling a deliberate pivot from traditional lending to a more robust, recurring revenue ecosystem. Meanwhile, SoFi is keeping the innovation pedal floored. It launched two new credit cards — SoFi Everyday Cash Rewards and SoFi Essential Credit Card — cementing its footprint in consumer finance and locking users deeper into its ecosystem. It's not just about more products — it's about smarter ones that boost lifetime value and retention. No Safe Zones: SoFi Faces Block and Upstart SoFi isn't alone on this battlefield. It faces stiff competition from fintech peers like Block XYZ and Upstart UPST. Block, the powerhouse behind Square and Cash App, is firing on all cylinders with a well-oiled machine spanning consumer payment, business lending, and crypto. Block's vertically integrated model is a formidable threat to SoFi's expanding empire. Then there's Upstart, armed with AI-driven lending algorithms that are rewriting the rules of credit. With recent moves into auto and small-dollar loans, Upstart is gunning for legacy lenders — and SoFi's turf — with aggressive tech-first strategies. Upstart's AI risk modeling, similar to SoFi's data-driven approach via Nova Credit, adds even more heat to the competition. Bottom line? SoFi is not just surviving, it's swinging hard. In a market full of disruptors, SoFi's combination of smart partnerships, product expansion, and financial discipline makes it a fintech brawler ready to lead. SoFi Stock is Blazing: But is it Too Hot to Touch? SOFI is on a tear in 2025. Shares have soared 40% year to date, torching the industry's modest 7% gain. The market sees momentum. But here's the kicker: the valuation is just as aggressive. < Image Source: Zacks Investment Research SOFI is currently trading at a forward P/E of 53.41, more than double the industry average of 22.08. That kind of premium pricing screams confidence, but also demands flawless execution. No surprise it has a of F; this isn't a bargain-bin stock. < Image Source: Zacks Investment Research Still, there's a silver lining. Earnings estimates for 2025 have been ticking higher over the past 30 days, signaling growing analyst conviction that SoFi's strategy is paying off. Image Source: Zacks Investment Research Despite the bullish run and rising earnings optimism, the stock has a Zacks Rank #3 (Hold), a sign that the rocket ride may cool off in the short term as investors digest the valuation. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 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 Upstart Holdings, Inc. (UPST) : Free Stock Analysis Report SoFi Technologies, Inc. (SOFI) : Free Stock Analysis Report Block, Inc. (XYZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Dear SoFi Stock Fans, Mark Your Calendars for July 29
SoFi Technologies (SOFI) has transformed from a student‑loan refi‑focused startup into a leading digital financial hub, offering everything from banking and lending to investing, crypto, and even private‑markets access. The results have resonated in SOFI stock's recent rally. The spotlight now turns to Tuesday, July 29, when SoFi will unveil its second-quarter earnings before the market opens. After a first quarter marked by robust growth across its ecosystem as both users and products expanded, the question is whether SoFi can sustain this momentum. More News from Barchart Nvidia Stock Warning: This NVDA Challenger Just Scored a Major Customer Dear Microsoft Stock Fans, Mark Your Calendars for July 30 Dear QuantumScape Stock Fans, Mark Your Calendars for July 23 Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! With SOFI stock already skyrocketing and trading at premium multiples, July 29 isn't just another earnings date. It's a critical check on whether SoFi can justify its valuation, maintain subscriber and product momentum, and hit ambitious guidance. For SoFi watchers, this is one earnings call you won't want to miss. About SoFi Stock SoFi Technologies is a fintech powerhouse based in San Francisco, California, which has expanded far beyond its initial student‑loan refinancing to building a fully integrated financial solution that offers lending, banking, investing, insurance, and a technology platform used by other financial firms. It currently commands a market capitalization of $23.4 billion, reflecting strong investor confidence in its diversified growth strategy. Shares of SoFi have been on a remarkable run lately, riding a wave of momentum into the upcoming earnings report. Over the past 52 weeks, SOFI stock has surged 178%, with a dramatic 86% climb over the past three months alone. This surge pushed the stock to a new 52-week high of $22.74 on July 18, reflecting growing investor enthusiasm for the company's strong fee-based and investor-centric growth, particularly with the reintroduction of crypto and private-market offerings. From a valuation standpoint, SOFI is priced at 79 times forward earnings and 9 times forward sales, indicating a clear premium compared to industry peers. SoFi Beat Q1 Projections SoFi Technologies released its Q1 2025 earnings report on April 29, demonstrating several standout achievements. SoFi achieved a record net revenue of $771.8 million, representing a 20% year-over-year (YOY) increase. Meanwhile, adjusted net revenue grew 33% YOY to $770.7 million, surpassing the consensus estimate. On the profitability front, while adjusted net income of $71.1 million represented a 19% decline from Q1 2024, the company delivered an adjusted EPS of $0.06, a significant increase from last year's $0.02 and higher than analysts' expectations. Growth across the company's user ecosystem remained strong with 800,000 new members joining, bringing the total to 10.9 million, a 34% YOY increase. On top of that, 1.2 million new products were added, taking total products to nearly 16 million. Fee-based revenue surged 67% to a record $315 million, reflecting successful expansion beyond interest income and into its tech and financial services platforms. SoFi also saw strength in loan originations, with $7.2 billion in total loans, including record home loan originations, which increased 54% annually, and improved credit performance indicators. Additionally, technology platform revenue grew 10% YOY, driven by partnerships like those with Wyndham Hotels & Resorts (WH) and Mercantil Banco. SoFi Fans, Mark Your Calendars for July 29 As SoFi approaches its Q2 earnings release on July 29, management has offered guidance that suggests steady momentum ahead. SoFi projects adjusted net revenue between $785 million and $805 million, and GAAP net income in the $60 million to $70 million range, equating to EPS of $0.05 to $0.06. Building on strong results, SoFi has raised its full-year guidance, now expecting adjusted net revenue between $3.23 billion and $3.31 billion. This represents an upward revision of approximately $35 million at the midpoint, signaling confidence in sustaining mid-20% revenue growth and expanding profitability through diverse fee-based services and growing deposits. Plus, adjusted EBITDA is estimated to be between $875 million and $895 million. For the year, SoFi expects GAAP EPS between $0.27 and $0.28, compared to the prior guidance of the $0.25 to $0.27 range. These targets align closely with consensus analyst forecasts, which currently estimate Q2 revenue at around $804.5 million and EPS at $0.06, a 500% YOY rise. Looking further ahead, analysts anticipate EPS to jump 87% annually to $0.28 in fiscal 2025, with another 79% surge to $0.50 in fiscal 2026. What Do Analysts Expect for SoFi Stock? Goldman Sachs recently initiated coverage of SoFi with a 'Neutral' rating and a $19 price target. While Goldman Sachs lauded SoFi as 'an impressive growth story in the neobank space,' citing progress in product diversification and membership expansion, it flagged caution about SoFi's valuation. Citizens JMP analyst Devin Ryan also recently downgraded SOFI stock to 'Market Perform,' citing its stretched valuation. On the other hand, Barclays maintained its 'Equal Weight' rating on SoFi but raised its price target from $12 to $18. The decision was driven by encouraging trends in card delinquency through May that hint at lower write-offs in Q2. SOFI stock has a consensus 'Hold' rating overall. Out of 22 analysts covering the stock, five recommend a 'Strong Buy,' two give a 'Moderate Buy,' 10 analysts stay cautious with a 'Hold' rating, two suggest a 'Moderate Sell,' and three rate it a 'Strong Sell.' SoFi is sustaining its strong momentum and has blown past the average analyst price target of $16.16. It is also currently trading at parity with the Street-high target of $21, signaling its rich valuation. On the date of publication, Subhasree Kar 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 Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
Can SoFi Stock Keep Its Hot Streak Alive as Q2 Earnings Approach?
SoFi (SOFI) will release its financial results for the second quarter of 2025 on Tuesday, July 29. The financial technology company has consistently delivered strong quarterly numbers, and this trend is expected to continue in Q2 as well. However, the significant appreciation in its share price has raised valuation concerns ahead of the earnings print. Over the past month, SoFi shares have soared more than 36%, recently hitting a new 52-week high. Zooming out, the numbers are even more solid. The stock has nearly doubled in the past three months and is up about 175% over the past year. This rally reflects both strong business performance and broader market optimism, particularly after last year's interest rate cuts, which provided a tailwind for growth-oriented fintech names like SoFi. More News from Barchart Opendoor Stock Is Surging Higher in a Frenzied Retail Rally. How Should You Play OPEN Shares Here? This Penny Stock Wants to Become the MicroStrategy of Dogecoin Robinhood Stock Stumbles as S&P 500 Inclusion Is Once Again Off the Table for HOOD Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. SoFi's solid execution, revenue diversification, cost reduction, expansion of product offerings, and growing customer base have all contributed to its rise. However, the market may already be pricing in many positives ahead of the Q2 report. With the stock now appearing fairly valued, if not somewhat stretched, will SoFi continue to deliver the kind of growth that justifies its high valuation? Let's take a look at the Q2 expectations. SoFi's Strong Q2 Outlook Signals Further Upside Potential SoFi Technologies is gearing up for a strong second quarter, with all signs pointing to sustained growth across its core business lines. The fintech firm continues to capitalize on its expanding user base, increasing product offering, and a strategic shift toward capital-light revenue streams. These elements, combined with a lower cost of capital and effective risk management, position SoFi to deliver strong top-line and bottom-line growth. Management has projected adjusted net revenue for Q2 to fall between $785 million and $805 million, reflecting a year-over-year increase of 31.1% to 34.5%. This growth outlook is supported by continued momentum in member acquisition and product adoption. In Q1 alone, SoFi added 800,000 new members and 1.2 million new products. Fee-based revenue reached a quarterly high of $315 million, a 67% jump from the prior year, primarily driven by the momentum in its Loan Platform Business (LPB) and a diversified mix of non-interest income sources. The LPB, which facilitates loan originations for third-party partners without taking on credit risk, is proving to be a scalable model. Management expects LPB to become SoFi's third business line to exceed $1 billion in annual revenue after SoFi Money. Notably, SoFi Money, its digital banking offering, is on a similar trajectory, driven by customer-friendly features like high-yield accounts and peer-to-peer transfers. SoFi's investment arm is also showing strength. The SoFi Invest platform saw a 21% year-over-year increase in investment product uptake in Q1. The company is broadening investor access to exclusive opportunities through partnerships, most recently giving members the chance to invest in private firms like Anthropic. This access, once limited to ultra-wealthy individuals, has become a compelling draw for SoFi's growing member base. Its technology platform continues to build momentum, attracting new clients and generating steady, fee-based revenue. As SoFi refines its tech infrastructure, the segment is expected to become an increasingly important revenue contributor. On the lending front, personal loans remain a key driver of growth, while home equity products are gaining momentum. The company's ability to fund these loans cost-effectively is a significant advantage. SoFi's deposit base swelled to $27.3 billion in Q1, helping reduce funding costs by an estimated $515 million annually. Wall Street anticipates SoFi will post earnings of $0.06 per share for the quarter, reflecting a year-over-year increase of about 500%. SoFi has beaten analyst estimates for four consecutive quarters, including a 100% beat last quarter, and another strong showing could push its share price even higher. Here's What Analysts Recommend for SoFi Stock SoFi's stock is already trading near the highest price target of $21, which indicates a potential pullback could be coming. Additionally, analysts currently have a 'Hold' consensus rating on the stock. The Bottom Line SoFi is likely to deliver solid Q2 financials led by growth across its core business segments. However, the recent surge in its share price has heightened valuation concerns, potentially limiting near-term upside. While SoFi's fundamentals remain strong and point to long-term growth potential, Q2 results and its outlook could reveal whether SoFi stock will continue to rise or its hot streak is due for a cool-down. On the date of publication, Amit Singh 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 Sign in to access your portfolio
Miami Herald
3 days ago
- Business
- Miami Herald
Popular bank makes investing in ChatGPT and SpaceX stock possible
If you've ever wondered how you could own shares of the world's most compelling pre-IPO businesses, look no further. These privately held companies aren't publicly traded like many well-known stocks, so you can't simply buy shares through a stock exchange using your normal brokerage account. Previously, access to invest in these businesses was limited to a select few company insiders, ultra-wealthy individuals, institutional investors, and venture capital funds. Don't miss the move: Subscribe to TheStreet's free daily newsletter But retail investors' appetite for alternative investments has grown quickly in recent years, leading some investment platforms to think outside the box for ways to give everyonethe ability to put their money to work in privately held businesses. In a bold move to democratize access to such private market investments, SoFi Technologies (SOFI) recently announced a new offering that allows individual investors to gain exposure to previously inaccessible private companies. The initiative is part of SoFi's broader expansion into private equity and venture capital investing through new partnerships with alternative asset managers Cashmere, Fundrise, and Liberty Street Advisors. Related: SpaceX and Blue Origin have a powerful new space race rival These partnerships provide SoFi's more than 10.9 million users with streamlined access to funds that hold stakes in many of the world's most coveted pre-IPO companies, notably including Elon Musk's SpaceX, OpenAI (the owner of ChatGPT), and Epic Games (the developer of Fortnite and Unreal Engine). Over the past year, SoFi has also expanded its "Alts" (alternative investment) platform to introduce investment funds managed by ARK, KKR, Carlyle, and Franklin Templeton, providing exposure to private credit, real estate, and other pre-IPO companies. SoFi recently relaunched its robo-advisor offering in a collaboration with BlackRock as well, providing members access to a variety of real estate and multi-strategy funds. "Expanding access to private markets is a critical piece of our mission to help members get their money right," said SoFi CEO Anthony Noto. "Historically, the private markets have been out of reach for most individual investors, despite outperforming public markets over the past two decades." Image source: Khanna/Getty Images Among the highlights of SoFi's expanded offerings is Liberty Street Advisors' Pre-IPO Innovation Fund, which holds stakes in high-profile private companies including SpaceX, the Musk-led aerospace and satellite communications giants with a rumored valuation of as much as $400 billion, according to a recent report from Bloomberg. Other offerings include Cashmere's growth fund, which invests in fast-scaling, design-centric startups and brands that appeal to younger demographics, and the Fundrise Innovation Fund, which focuses on late-stage tech companies with strong exit potential via IPO or acquisition. More Elon Musk News: Elon Musk company reveals major leap forwardThe 'anti-Tesla' gives American buyers more good newsElon Musk's DOGE made huge mistakes with veterans' programs SoFi's move taps into a growing trend of retail interest in alternative assets. As public market returns become more volatile and institutional investors increasingly allocate capital to private equity, retail investors have clamored for ways to access similar opportunities. To that end, SoFi users will be able to invest with minimums starting at $10 and varying depending on the specific fund they intend to purchase. Those minimums are far below the standard $250,000+ often required by venture and growth equity funds. Related: ChatGPT bets on back-to-school boost as interest flattens out For investors in SoFi stock, this also signals the neobank's continued evolution from a fintech startup into a full-service financial institution. From the company's genesis as a student loan refinancer to its subsequent moves into mortgages, stock and cryptocurrency trading, and consumer banking services, expanding private equity access strengthens its investment product suite and may help attract and retain high-value customers as they seek more streamlined, sophisticated wealth-building tools. This also fits well within SoFi's broader strategy of owning more of the financial value chain by embedding differentiated offerings into its app-centric ecosystem. Over the long term, the success of this initiative will depend on a combination of user adoption, fund performance, and SoFi's ability to educate retail investors on the minutiae and risks of private investments. If successful, it could positively reshape how millions of people build long-term wealth, and potentially prove to be a watershed development in the democratization of finance. Related: Trump decision leaves Elon Musk in a serious bind The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
5 days ago
- Business
- Yahoo
SoFi's $35 Trillion Market Opportunity That Investors Aren't Paying Attention To (Yet)
Key Points There's a lot to like about SoFi right now, including its loan platform business and the return of crypto trading. Home lending is not a big part of SoFi's business, but it's growing quickly and could be a massive long-term opportunity. Not only could mortgage volume soar, but refinancing and home equity loans could also be a massive market as rates fall. 10 stocks we like better than SoFi Technologies › Shop Top Mortgage Rates Your Path to Homeownership A quicker path to financial freedom Personalized rates in minutes SoFi (NASDAQ: SOFI) has roughly tripled over the past year, and to be sure, there is a lot to like about the banking disruptor. For example, in the most recent quarter, SoFi added 800,000 new members -- its highest single-quarter total ever. In addition, SoFi's loan platform, where it originates loans on behalf of third-party partners, is turning into an impressive generator of capital-light fee income. SoFi could also be a big beneficiary of the student loan limitations contained in the recent tax and spending bill. And SoFi recently announced that cryptocurrency trading will return to its platform by the end of the year. I could go on, but you get the idea. This company has a lot going for it. However, SoFi has yet another opportunity that isn't getting much attention -- at least not yet. But this could possibly be SoFi's largest market opportunity of all, and it's a product that the company already offers. A $35 trillion market opportunity A few years ago, millions of Americans were tapping into their home equity. In fact, I'm not sure I could name a homeowner friend who didn't refinance or get some sort of home equity loan during the 2020-2021 period. However, once inflation hit hard in 2022 and interest rates began to rise quickly, this dried up. Many homeowners put big projects on hold that they otherwise would refinance their mortgage to fund. Sure, there are some people using their home equity right now. However, activity is significantly lower compared to the low-rate period. Not only has refinancing and home equity lending volume plummeted, but home values have also risen dramatically over the past five years. As a result, homeowners in the United States have an all-time high of $35 trillion in equity in their homes. SoFi's home loan growth is impressive In the first quarter, SoFi's home loan originations totaled $518 million. This is less than one-tenth of its personal loan originations and about half of its student loan volume. So, it's a small part of the business today. However, consider the progress SoFi has made. After a solid year in 2021, when 3% mortgage rates were common, SoFi's home loan volume fell off a cliff. In the first quarter of 2023, the company originated just $90 million in home loans. So, the volume from the first quarter of 2025 represents a 476% increase in volume in just two years. What to watch One thing that makes the home loan growth over the past two years especially impressive is that SoFi managed to do it in a terrible environment for home loans. Relatively few people are currently tapping into their home equity, and the existing home sales market remains very low. The key factor that could trigger an inflection point is mortgage rates. As I'm writing this, the average 30-year mortgage rate in the United States is about 6.75%. If this falls to 6%, 5.5%, 5%, or even lower over the next few years, it could not only help thaw the sluggish real estate market but also trigger a wave of mortgage refinancing. SoFi currently offers refinancing loans (including cash-out refinancing), a variety of purchase mortgages, and home equity loans and home equity lines of credit (HELOCs). In fact, SoFi's HELOCs have some competitive advantages, such as no application fees and the ability to borrow up to 90% of your home equity (many lenders limit this to 80%). As mentioned, Americans are sitting on $35 trillion in home equity, so the surge in volume could be massive. The bottom line is that SoFi's home loan business isn't a major component of its ecosystem yet, but it's heading in that direction. And if rates fall significantly, it could become one of the bank's most exciting opportunities. Do the experts think SoFi Technologies is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did SoFi Technologies make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,048% vs. just 180% for the S&P — that is beating the market by 867.59%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* The 10 stocks that made the cut could produce monster returns in the coming years. 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 15, 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. SoFi's $35 Trillion Market Opportunity That Investors Aren't Paying Attention To (Yet) was originally published by The Motley Fool
