Latest news with #SoFiTechnologies
Globe and Mail
15 hours ago
- Business
- Globe and Mail
Could Buying SoFi Stock Today Set You Up for Life?
Key Points SoFi's stock has gained about 185% over the past 12 months. Its shares are priced for perfection, and competition in the fintech space is fierce. The stock isn't a bad investment, but it probably won't set you up for life. 10 stocks we like better than SoFi Technologies › SoFi Technologies (NASDAQ: SOFI) plays a leading role in the financial technology (fintech) space right now, with the company's laundry list of financial services ranging from savings accounts and loans to even crypto trading. The company's early moves into fintech and its ability to expand its services and customer base have made its stock a must-have among many investors, boosting it more than 230% over the past three years. Those gains are more impressive when you consider that even some tech giants like Microsoft, which are benefiting from an artificial intelligence boom, have seen their share price double over the period. Impressive, sure, but far behind SoFi's gains. 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 » The question now for potential investors is whether the stock can continue to put up staggering returns that could set an investor up for life. There's no question that SoFi has been successful, but it's doubtful the stock will continue its rapid rise. Here are three reasons why. 1. SoFi is already priced for perfection The downside of SoFi's share price rising so quickly is that it has significantly raised its valuation, making it priced for perfection. It has a price-to-earnings ratio (P/E) of about 50, much higher than the average P/E multiple of 29 for the S&P 500 index. Sure, most stocks across nearly every sector look historically expensive right now. But SoFi is still frothy, even in the current market. Any earnings or revenue misses in an upcoming quarterly report or negative news could cause the stock to fall. Buying it now means you're paying a premium for the stock, and with expectations riding high, there will be a point when quarterly results don't match investors' expectations. 2. Tariffs aren't in the rearview mirror yet News moves so fast these days that it can seem like the tariffs the Trump administration announced in April are in the distant past. But the administration still has many tariffs in place and recently announced new ones. The first wave of tariff uncertainty sparked a massive sell-off in the market, and SoFi's shares fell too, tumbling 17% in just a few days. While stocks have since rebounded, the fact remains that investors know high tariffs could be bad for the economy. Inflation ticked up slightly higher to 2.7% in June, with at least some of the blame going to tariffs. If inflation continues to rise, and Americans cut back on their spending, that could significantly affect SoFi's growth. The fintech relies on its members spending money, taking out mortgages and personal loans, and using their credit cards. If the economy slows because of tariffs, then it's likely some SoFi members will stop using the company's products as frequently. And, in the worst-case scenario, a significant economic slowdown or recession could make it difficult for some members to continue paying on their loans. 3. Fintech is fiercely competitive All companies have competitive risks, but the fintech sector takes competition to a new level. Consider the companies that have at least one product similar to SoFi's, including Wells Fargo, Apple, Block, Robinhood, Klarna, PayPal, and many more. Financial services used to be what banks did. Now, tech companies offer financial services, and even have bank charters, like SoFi. And while SoFi's services have been lucrative -- its earnings soared 200% in the most recent quarter to $0.06 per share -- it also means that small fintech companies and large tech companies are constantly creeping into each other's territory. This may be one of the most significant reasons why SoFi may not be the best stock to set you up for life. Too many other companies offer great financial services to customers through sleek and easy-to-use apps. While it has built some advantages in fintech by offering a variety of services, I think it's still too early to assume that its competition can't eventually take away some of its members. To be clear, I don't think SoFi is a bad investment. I just don't think it's a stock that will set you up for life. If you're inclined to buy the company's shares right now, I would start with a small position. And if the stock gives up some of its gains, then maybe add a little more. But with the shares up 185% over the past 12 months, the likelihood of similar returns looks slim. 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 Wells Fargo is an advertising partner of Motley Fool Money. Chris Neiger has positions in Apple. The Motley Fool has positions in and recommends Apple, Block, Microsoft, and PayPal. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft, long January 2027 $42.50 calls on PayPal, short January 2026 $405 calls on Microsoft, and short June 2025 $77.50 calls on PayPal. The Motley Fool has a disclosure policy.
Yahoo
a day ago
- Business
- Yahoo
Prediction: 2 Stocks That Will Be Worth More Than CoreWeave 10 Years From Now
Key Points CoreWeave is popular today, but it has a lot of risks tied to AI. Coupang is a fast-growing e-commerce technology company that just expanded into AI. SoFi Technologies is gaining a lot of share in consumer banking right now. 10 stocks we like better than Coupang › Investors have fallen in love with artificial intelligence (AI) start-up CoreWeave. The AI cloud provider is growing its capacity at a rapid pace, and it just announced a new $6 billion data center project. Shares of the stock have soared since its initial public offering (IPO) earlier this year, and it now has a market cap of $70 billion. However, CoreWeave is a dangerously unprofitable company, loaded with debt, and tied to the rollercoaster ride that is AI cloud spending. It is a highly risky stock, and one that might disappoint investors in the years to come. Here are two stocks that I predict will be larger than CoreWeave in 10 years: Coupang (NYSE: CPNG) and SoFi Technologies (NASDAQ: SOFI). Here's why. Building on existing business models Coupang is an ambitious technology giant from South Korea, modeling itself on Amazon's success in the United States. It has an e-commerce platform, its own logistics network, and a subscription program that gives users free shipping and discounts. Sound familiar? There are now 23.4 million active customers on the South Korean platform, meaning the majority of households in the small country are now using Coupang regularly. Last quarter, gross profit grew 31% year over year on a foreign currency neutral basis, driven by the growing efficiencies of Coupang's vertically integrated commerce offering. Now, the company is expanding its horizons, to both new geographies and new business models. Coupang recently entered Taiwan, a wealthy country with 23 million people. Its e-commerce model is growing quickly, with net revenues in Coupang's Developing Offerings segment accelerating to 78% year-over-year growth on a foreign currency neutral basis, mainly driven by Taiwan. At $1 billion in revenue last quarter, these new offerings are now a large piece of Coupang's overall revenue that will get close to $30 billion in 2025, with plenty of room to grow. In new technologies, Coupang just publicly unveiled its AI cloud service, Coupang Intelligent Cloud. This division is aiming to take advantage of cloud and AI spending in South Korea, where the government is giving out grants to accelerate growth. It is still a nascent opportunity, but one the technology giant is equipped to handle due to its geographical location. For example, none of the American technology giants are likely to win grants to build data centers funded by the Korean government. Today, Coupang has a market cap of $56 billion. With so many diversified opportunities available for it, I think Coupang is a much better bet than CoreWeave and will be a larger enterprise 10 years from now. High growth in consumer finance SoFi is a well-known and fast-growing digital banking brand in the United States. Over the last decade, it has gone from being a student loan refinancer to being a full-fledged digital consumer finance tool. It now has banking, investing, savings, insurance, spending, and lending products available through its easy-to-use mobile application. This has made it enticing for customers to switch banks to SoFi. Customer deposits grew to $27 billion in the first quarter of 2025, compared to $26 billion in the fourth quarter of 2024. While the level of deposits is nowhere near the big banks', this gives SoFi a large runway to steal market share from these legacy providers. With lower overhead costs, SoFi is able to offer higher yields on deposits, which many customers enjoy. It then upsells customers to credit cards, lending, and investing services. SoFi's adjusted revenue grew 33% year over year last quarter to $771 million. The company is finally profitable, with net income of $71 million, alleviating a previous concern from investors. As it convinces more people to switch to SoFi, the company should enjoy its land-and-expand model and watch revenue and earnings grow for years to come. Over the next 10 years, I expect consistent growth in deposits, revenue, and earnings for SoFi that will drive the stock higher and higher. At a market cap of $23 billion, SoFi is significantly smaller than CoreWeave today. But 10 years is a long time, and CoreWeave is a highly risky stock with a lot of downside. With this taken into account, I believe that SoFi will have a larger market cap than CoreWeave in 10 years' time. Should you invest $1,000 in Coupang right now? Before you buy stock in Coupang, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Coupang 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 $687,149!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,060,406!* Now, it's worth noting Stock Advisor's total average return is 1,069% — 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 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Brett Schafer has positions in Amazon and Coupang. The Motley Fool has positions in and recommends Amazon. The Motley Fool recommends Coupang. The Motley Fool has a disclosure policy. Prediction: 2 Stocks That Will Be Worth More Than CoreWeave 10 Years From Now was originally published by The Motley Fool
Yahoo
3 days ago
- Business
- Yahoo
Barclays Maintains ‘Equal Weight' Rating on SoFi Technologies, Inc. (SOFI); Raises PT
Given the company's popularity among hedge funds and the bullish sentiment surrounding it, SoFi Technologies, Inc. (NASDAQ:SOFI) makes it to our list of the Top 10 AI Infrastructure Stocks to Buy Now. A scientist at a computer station, surrounded by a neural network of artificial intelligence code. Barclays increased its price target on SoFi Technologies, Inc. (NASDAQ:SOFI) from $12 to $18, while maintaining a 'Hold' rating. The increased price target, which was announced on July 11, 2025, is attributed to the company's improving card delinquency trends through May, which indicates potentially lower write-offs in Q2, improving sentiment ahead of the July 29 earnings release. Meanwhile, the company's share price has risen 40.77% in the past month, driven by the boost in investor interest due to SoFi Technologies, Inc.'s (NASDAQ:SOFI) return to crypto and its planned stablecoin. Furthermore, SoFi Technologies, Inc.'s (NASDAQ:SOFI) recently announced partnership with Cashmere is expected to expand its Alternative Investment Platform, which is critical to attracting high-value, long-term investors. Looking ahead, analysts on Wall Street forecast Q2 EPS at $0.06, which is a significant jump from $0.01 a year ago. At the same time, the revenue estimate is set at $802 million. SoFi Technologies, Inc. (NASDAQ:SOFI) offers consumer lending, investing, and digital banking services, while operating tech platforms such as Galileo and Technisys across North America and Hong Kong. While we acknowledge the potential of SOFI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: Billionaire Kerr Neilson's 10 Stock Picks with Huge Upside Potential and Growth Stock Portfolio: 12 Companies with At Least 30% Annual Growth Rates. Disclosure: None.
Yahoo
4 days ago
- Business
- Yahoo
The Smartest Bank Stocks to Buy With $100 Right Now
SoFi is adding high-value services to its platform that target its specific market. Nu is adding millions of customers quarterly, but it's still a small fish in a large sea of financial companies in Latin America. 10 stocks we like better than SoFi Technologies › Bank stocks as a category are generally high-value, low-growth stocks. They typically pay dividends, often with attractive yields, and they're reliable for long-term growth as they drive the economy. However, if you're looking for great bank stocks, I'm going to turn the tables here and present two quality candidates that are high-octane growth stocks with no dividends that are not for the risk-averse investor. If that fits your investing profile, and you have $100 to invest right now, SoFi Technologies (NASDAQ: SOFI) and Nu Holdings (NYSE: NU) are two stocks you should take a look at. SoFi was one of the legions of special-purpose acquisition companies (SPACs) that stormed the markets a few years ago before petering out to a trickle these days. It's one of the few that actually took off, becoming a real industry disruptor with loads of potential. The bank is all online, with a multitude of easy-to-use services geared toward the novice user. Since it was created to be completely digital, and it's still small and growing, it has agility and flexibility that give it a leg up, in certain ways, over legacy banks. It's attracting customers at a rapid pace, with a record 800,000 new accounts in 2025's first quarter, a 34% increase from the same period last year. The target market is young professionals who are getting their feet wet in finance, with good jobs and a long runway in increasing engagement and adoption of financial services. The company calls its growth strategy the financial services productivity loop, and it involves cross-selling and upselling more services to monetize its user base more effectively over time. That means adding new customers and impressing them enough to keep them, as well as launching new services to have a broad assortment of products and solutions. To appeal to this specific market, it's using some aggressive marketing techniques like naming sports arenas that are meaningful to these users and sponsoring events they appreciate. More than that, it's rolling out services with the intent to deliver real value to its customers rather than simply mimicking what's already available through other banks. For example, it has offered access to initial public offerings (IPOs) usually only available to institutional investors, and it recently announced that it will offer users instant global remittances through a blockchain. Last week, it announced access to private markets through several partnerships. SoFi's core segment is lending, and as interest rates have started to come down, it has been boasting strong revenue gains and profit growth, as well as improving credit metrics. But it's focusing on expanding its platform, specifically in the financial services segment, which is low cost and fee based. It's probably only a matter of time until this segment becomes its largest, and scale is resulting in increasing net income. Chief Executive Officer Anthony Noto envisions SoFi becoming a top-10 bank with a huge, long-term opportunity. Nu is similar to SoFi, but it operates in Brazil, Mexico, and Colombia. It's growing fast, adding millions of new customers quarterly, but it has a way to go. The bank added more than 4.3 million new accounts in 2025's Q1 for a total of 118.6 million. The vast majority, 104.3 million, are in the company's home market of Brazil, where more than half of the adult population has a Nu account. Although it's still adding millions of new customers there, it's growing even faster in Mexico and Colombia where it's still a small presence. It only recently launched savings accounts in these countries, and it was recently approved for a bank charter in Mexico, making it the first all-digital bank to get one. Customers are highly engaged, and the company is reporting strong growth metrics. Revenue increased 40% year over year in 2025's Q1, and net income was up 74% to $557.2 million. Although sales growth decelerated in the quarter, Nu has been demonstrating admirable performance considering the high inflation and overall volatile macroeconomy in Brazil. Deposits increased 48% over last year in the quarter, and loan originations were up 64%, but net interest margin (NIM) was down from 19.5% last year to 17.5% this year. Management cites its heavy investments in expanding the business in Mexico and Colombia as pressuring the margin. However, even though those two regions aren't yet profitable, the Brazil business is profitable enough on its own to keep earnings positive and allow for newer growth areas. Nu has a small share of the financial services system in its regions, specifically in Mexico, but it's growing quickly, and there's a tremendous opportunity to capture more. Now is an excellent time to get in as it keeps expanding. 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 $680,559!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,005,670!* Now, it's worth noting Stock Advisor's total average return is 1,053% — 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 Jennifer Saibil has positions in Nu Holdings and SoFi Technologies. The Motley Fool recommends Nu Holdings. The Motley Fool has a disclosure policy. The Smartest Bank Stocks to Buy With $100 Right Now was originally published by The Motley Fool
Business Insider
12-07-2025
- Business
- Business Insider
Top Needham Analyst Assigns SOFI Stock a Hold Rating, Says ‘Fully Valued' Ahead of Q2 Earnings
Top Needham analyst Moshe Orenbuch initiated coverage of SoFi Technologies (SOFI) stock with a Hold rating and a price target of $21. While the 5-star analyst highlighted many positives of the fintech company and digital bank, he is sidelined on the stock as he believes that it is fully valued at the current levels. SoFi Technologies is scheduled to announce its earnings for the second quarter of 2025 on July 29. Expectations are high, given the company's solid Q1 performance, driven by strength in its Financial Services business and a rapidly expanding member base. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Wall Street expects SoFi to report EPS (earnings per share) of $0.06, reflecting a significant increase from $0.01 in the prior-year quarter. Furthermore, revenue is expected to grow by 34% to around $802 million. SOFI stock has rallied about 46% in the past month and has risen by an impressive 219% over the past year, thanks to its robust growth and solid execution amid challenging macro conditions. Top Analyst Is Cautious on SOFI Stock Despite Multiple Strengths Orenbuch stated that SoFi is a leading neobank that started its journey as a student loan refinance originator and has significantly increased the breadth and depth of its product offerings. He noted that the company offers a wide array of best-in-class products, including Money and Invest. These products and solutions are integrated into one platform, which enables the leveraging of customer acquisition costs. Further, Orenbuch noted that the 2022 acquisition of a bank by SoFi Technologies allowed it to build its customer franchise with consumer deposits and further bolstered its position while increasing customer retention. He also noted the strategic acquisition of Galileo in 2020 and Technisys in 2022. Moreover, the analyst highlighted the fintech's recent announcement about re-entering the crypto space. The analyst pointed out that despite higher interest rates, SoFi delivered a 37% compound annual growth rate (CAGR) in its revenue from 2021 to 2024. He also views SoFi's product diversification as a core strength, which allows it to sustain growth across changing macro conditions. Despite all these strengths, Orenbuch has a neutral stance on SOFI stock due to valuation concerns. Orenbuch ranks 22 nd out of more than 9,800 analysts on TipRanks. Remarkably, he has a success rate of 71%, with an average return of 23.5% over a one-year period. Is SOFI a Good Stock to Buy? Like Orenbuch, Keefe, Bruyette & Woods analyst Timothy Switzer also highlighted several positives, mainly the revenue opportunities from crypto and the significantly expanded student lending opportunity following the passage of U.S. President Donald Trump's 'Big, Beautiful Bill.' While Switzer increased the price target for SOFI to $13 from $9, he reiterated a Sell rating, saying that the stock has 'run past fundamental value despite the company's exciting growth prospects and strong value proposition.' With eight Buys, six Holds, and three Sells, Wall Street has a Moderate Buy consensus rating on SoFi Technologies stock. At $15.58, the average SOFI stock price target indicates a downside risk of about 26% from current levels.
