Latest news with #SoFi
Yahoo
a day 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
2 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
3 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
Globe and Mail
3 days ago
- Business
- Globe and Mail
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 › 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. 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 $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!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% 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 15, 2025
Yahoo
5 days ago
- Business
- Yahoo
Here Are My Top 3 Fintech Growth Stocks to Buy Now
Key Points Interactive Brokers offers low-cost trading of various financial products and boasts high profit margins. SoFi has increased its deposit base to $27.3 billion and is building out its technology platform to support other fintech companies. Tradeweb has pioneered automation in trading for professional institutional investors. 10 stocks we like better than Interactive Brokers Group › Fintech is at the exciting crossroads of technology and finance. From the rise of digital wallets and investing to innovations of blockchain-based platforms and AI-driven analytics, the fintech revolution is transforming how individuals and institutions create, manage, and increase their capital. As consumer behaviors and technology evolve, these fintech companies leading the charge have the potential to deliver stellar returns. Here are three stocks with solid growth prospects to consider today. Interactive Brokers Interactive Brokers (NASDAQ: IBKR) offers an electronic trading platform, primarily focused on serving tech-savvy investors. The company offers a variety of products on its platform, including stocks, options, futures, currencies, bonds, mutual funds, exchange-traded funds (ETFs), event contracts, and cryptocurrencies. What sets Interactive Brokers apart is its highly automated platform, which enables it to offer the lowest-cost trading in the industry. As a result, the company attracts tech-savvy, active investors looking to execute their trades at the best possible prices. The company's commitment to automation is evident when you see that its senior management is mainly comprised of software engineers. This commitment, thanks to its proprietary technology, enables it to provide high-speed trade execution at low commission rates. Thanks to its highly automated platform, Interactive Brokers boasts industry-leading margins that surpass both traditional financial and fintech companies. In 2024, its adjusted pretax profit margin was 72%. Given its cost advantage and stellar margins, Interactive Brokers is a solid growth stock for investors to consider buying today. SoFi SoFi Technologies (NASDAQ: SOFI) has evolved from a student loan provider into a full-service digital bank and fintech company, offering loans, investing, banking, and tools that enable other companies to create financial products. The company has made strides in recent years, expanding its deposit base from zero to $27.3 billion with its acquisition of Golden Pacific Bancorp in 2022. SoFi has also developed a technology platform that enables it to provide essential back-end services to other fintech companies, supporting multiple products simultaneously and transforming the fintech landscape. This segment helps SoFi diversify its revenue through its business-to-business offering and supports its product innovation and speed to market. In the first quarter of 2025, technology platform accounts reached more than 158 million, representing a 5% year-over-year increase. SoFi has made moves to diversify its revenue and establish itself as a complete financial services company. It continues to deliver positive earnings results and sees strong demand for personal loans from its lending partners, making it another solid growth stock for investors today. Tradeweb Markets Tradeweb Markets (NASDAQ: TW) provides an electronic marketplace for its global network of professional investors and traders. It offers trading on its platform across four primary asset classes: rates, credit, equities, and money markets. Tradeweb has been at the forefront of electronic trading. The company was founded in 1996 to address inefficiencies in U.S. Treasury trading. At the time, there were issues with price transparency, and every trade had to be done manually. Tradeweb was the first to offer web-based electronic trading for institutional traders in U.S. Treasuries. The company has since expanded into a wide range of products and has invested heavily in technology and automation to stay ahead of its competitors. Its Automated Intelligent Execution (AiEX) tool is one example of this. This technology lets clients execute a large volume of trades at high speed using pre-programmed rules, freeing up time for more complex transactions. Adoption of AiEX has significantly increased, with more than 40% of institutional trades utilizing this functionality in 2024, up from 23% in 2019. Tradeweb continues to develop and adapt to its customers' needs, which is why it has achieved such high adoption rates and continues to capture a growing share across the different assets it offers. Another benefit of owning Tradeweb is that it performs well amid heightened uncertainty, as volatility is linked to increased trading activity. For example, in the first quarter, a record trading volume of $164.5 trillion was achieved due to volatility across asset classes, as investors weighed the policies of the incoming Trump administration, specifically tariffs. Given its growing market share and position across various asset classes, Tradeweb is another excellent fintech stock poised for further growth. Should you buy stock in Interactive Brokers Group right now? Before you buy stock in Interactive Brokers Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Interactive Brokers Group 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 $674,281!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,050,415!* Now, it's worth noting Stock Advisor's total average return is 1,058% — a market-crushing outperformance compared to 179% 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 15, 2025 Courtney Carlsen has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Interactive Brokers Group. The Motley Fool recommends the following options: long January 2027 $175 calls on Interactive Brokers Group and short January 2027 $185 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy. Here Are My Top 3 Fintech Growth Stocks to Buy Now 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
