Latest news with #SoFiTechnologies'
Yahoo
23-05-2025
- Business
- Yahoo
Where Will SoFi Technologies Be in 3 Years?
The pandemic disrupted SoFi Technologies' core business, but it didn't stop the company from generating staggering growth. The student loan business could soon become a tailwind for SoFi again. The stock is fairly valued and could rise by 50% over the next few years. 10 stocks we like better than SoFi Technologies › SoFi Technologies (NASDAQ: SOFI) has had a bumpy ride. Its stock has fluctuated between $6 and $18 over the past year alone. The market is still trying to determine what to make of the all-digital bank. The business has performed well despite some sizable headwinds. Now, those headwinds are dissipating, which could finally allow SoFi Technologies to realize its full potential. But will the stock reward investors who buy now? Here is where SoFi Technologies could trade in May 2028. It can be tempting to pass judgment on a stock that hasn't performed well for an extended period. SoFi Technologies joined the public market via a reverse SPAC merger in mid-2021, and today, it's down nearly 50% from the all-time high it set shortly afterward. In the interim, however, it had been in far worse straits -- down by more than 83% at the bottom of its trough. However, context is essential, and there's a lot of relevant context in play with this company. For starters, SoFi went public at the height of a stock market bubble that was powered in part by the zero-percent benchmark interest rates that helped keep the economy functioning during the COVID-19 pandemic. But the pandemic took the wind out of its core business. SoFi built its name in the student loan space, and the federal government temporarily froze repayments of those loans as part of its effort to keep Americans' finances secure amid the crisis. Additionally, the combination of monetary stimulus and widespread supply chain issues leading to shortages of goods and commodities eventually stoked inflation, which the Federal Reserve responded to by raising the federal funds rate off of its near-zero level at one of the sharpest paces in modern history. That essentially popped the stock market bubble. It also slammed the brakes on consumer borrowing. SoFi Technologies kept making strides through all of this, though. The company's digital banking ecosystem, accessible by customers through its smartphone super app, is wildly popular. SoFi's grown to over 10.9 million members from just 3.4 million in 2021. Plus, the company got a banking charter in 2022, which helped it generate net income for the first time last year. Not bad for a company dealing with a laundry list of problems. It's remarkable when you put numbers to it: SoFi's quarterly student loan originations peaked just before the pandemic at $2.4 billion in Q4 2019. The company's total net revenue was approximately $451 million that year. SoFi's student loan business has begun recovering, but originations were still only about $1.2 billion in Q1 2025. Yet management is guiding for over $3.2 billion in net revenue this year. The business has grown that much despite its former bread-and-butter student loan business imploding. The U.S. government is now aggressively pushing to get borrowers back to repaying their student loans. That could spark a wave of refinancing activity for SoFi, which has a much larger user base and greater access to capital than it did in 2019. Investors should be excited about what student loan growth could do for SoFi's business over the next several years as borrowers scramble to refinance their loans after the long repayment freeze. And that would come on top of SoFi's already-rampant growth. Its member base was up by 34% year over year in Q1 2025. And the digital bank still has vast cross-selling opportunities -- its average member uses just 1.45 of its products. SoFi's recent strides on the profitability front have begun driving its book value per share higher, and that growth should continue due to the operating leverage the company has achieved. Today, the stock trades at 3.2 times its tangible book value (TBV). That might seem expensive at first glance. For example, JPMorgan Chase trades at almost 2.8 times its TBV. However, SoFi's TBV has grown by 14.6% over the past four quarters while JPMorgan's is up by 8.4%. That's a long-winded way of saying SoFi's membership and TBV growth warrant a premium. Management is guiding for a 12% increase in TBV this year. If SoFi sustains that growth rate over the next three years -- a reasonable expectation given the student loan growth ahead -- and if it keeps its current TBV ratio, the stock will trade near $19, almost 50% higher than its current price. I wouldn't be surprised if SoFi's growth accelerated and the stock did better, but I'd rather be overly cautious than expect too much and be disappointed. Either way, SoFi Technologies is a business headed in the right direction, and the stock's current valuation positions it for solid, if not outsized, shareholder returns over the next three years, and possibly beyond. 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 $644,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $807,814!* Now, it's worth noting Stock Advisor's total average return is 962% — a market-crushing outperformance compared to 169% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 JPMorgan Chase is an advertising partner of Motley Fool Money. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy. Where Will SoFi Technologies Be in 3 Years? 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
14-05-2025
- Business
- Yahoo
SoFi Technologies (NasdaqGS:SOFI) Reports Revenue Rise Despite Net Income Dip
SoFi Technologies introduced its SmartStart student loan refinancing option and expanded access to private market funds, aligning with recent financial results that reported a revenue increase but a dip in net income. Despite this mixed financial performance, SoFi's stock price rose 33% last month. These new offerings and results may have contributed positively to the stock's performance, although the market's broader 3% rise also aided the move. While the company's developments were supportive, no single event stands out as the sole catalyst for the significant stock price increase. The broader market trends played a supportive role during this period. We've spotted 2 warning signs for SoFi Technologies you should be aware of, and 1 of them makes us a bit uncomfortable. The end of cancer? These 24 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's. SoFi Technologies' recent introduction of the SmartStart student loan refinancing option and wider access to private market funds aligns with its strategic emphasis on expanding its digital financial services. These initiatives could potentially bolster future revenue and earnings by attracting a broader customer base and enhancing cross-selling opportunities within their existing ecosystem. The new offerings may support SoFi's forecasted revenue growth of 14.1% per year, although economic uncertainties could still pose a challenge to these projections. Over the past three years, SoFi's total shareholder return stood at 102.70%, highlighting significant long-term performance, despite recent fluctuations. This three-year return contrasts with the recent one-year performance, where SoFi outperformed the US Consumer Finance industry by a notable margin. The share price's upward movement, rising 33% last month, reflects investor anticipation of these positive developments, though the broad market rally also played a supportive role. SoFi's current share price of $13.27 remains slightly below the consensus analyst price target of $13.82, reflecting that analysts believe the stock is close to fair value. The news and developments could influence upward adjustments in price targets if SoFi demonstrates consistent revenue and earnings growth. However, with SoFi trading at a higher Price-To-Earnings Ratio (33.4x) compared to the industry average, there are concerns about its valuation relative to peers, which could temper expectations of significant price gains beyond the forecast period. Gain insights into SoFi Technologies' future direction by reviewing our growth report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:SOFI. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ 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
29-04-2025
- Business
- Yahoo
SoFi Technologies (NasdaqGS:SOFI) Reports US$71 Million Q1 Net Income, EPS Improves
SoFi Technologies has shown a complex performance in recent weeks, as the company experienced a 23% increase in its share price over the past week. The initial market reactions to the earnings announcement quietly played into this rise, despite a decrease in net income and basic earnings per share for Q1 2025. Positive investor sentiment likely also stemmed from the launch of SmartStart, a refinance option aimed at easing student loan repayment, and the expansion of investment offerings in private markets. These product developments have undoubtedly contributed additional weight to the overall move in a generally upward-trending market. Every company has risks, and we've spotted 2 warning signs for SoFi Technologies (of which 1 is significant!) you should know about. The end of cancer? These 23 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's. The recent developments at SoFi Technologies, particularly the launch of SmartStart and the expansion into private market investments, could enhance investor confidence in the company's growth strategy. These initiatives align with SoFi's diversification into capital-light, non-lending segments, which may improve revenue streams and margins by reducing balance sheet risk. However, the current share price is higher than the consensus analyst price target of US$13.29, indicating possible overvaluation if these moves don't deliver the expected earnings growth. Over a longer-term period of three years, SoFi's shares have delivered a total return, including dividends, of 108.53%, showcasing strong performance. In comparison to the past year's performance, SoFi has outpaced the US Consumer Finance industry, which returned 16.8%. This positive trajectory over both the short and long term highlights the market's confidence in SoFi's potential, yet the disparity between the current share price and the analyst price target raises caution about future valuation adjustments. The anticipated revenue and earnings growth linked to SoFi's new initiatives signal a push toward higher capital efficiency. However, achieving the projected revenue of approximately US$4.2 billion and earnings of US$922.9 million by February 2028 remains contingent on successful execution of these strategies. Analysts expect these figures to support a future PE ratio of 21.6 times, above the current Consumer Finance industry average. This underscores the critical need for SoFi to translate its recent product developments into sustainable financial outcomes to justify the current market valuation. Gain insights into SoFi Technologies' historical outcomes by reviewing our past performance report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:SOFI. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
24-04-2025
- Business
- Yahoo
SoFi Technologies (NasdaqGS:SOFI) Launches SmartStart Loan Option Offering Flexible Repayment Terms
SoFi Technologies introduced its innovative SmartStart refinance option, aiming to provide student loan borrowers with flexible repayment terms. This launch aligns with the company's ongoing commitment to enhance borrower experience and drive growth in its loan offerings. Over the past week, SoFi's share price moved up by 6.92%, aligning with the broader market trends, as the Nasdaq gained 2.3%. The price movement reflects both the favorable sentiment towards SoFi's product offering and the supportive market environment, with robust performance reported in other tech stocks and a general positive sentiment on Wall Street. SoFi Technologies has 2 possible red flags (and 1 which is a bit unpleasant) we think you should know about. Trump's oil boom is here — pipelines are primed to profit. Discover the 22 US stocks riding the wave. The launch of SoFi Technologies' SmartStart refinance option could significantly influence the company's growth trajectory by potentially expanding its customer base and enhancing loan issuance. With lower repayment terms, there might be an uptick in loan demand, which could positively impact revenue and earnings forecasts. The anticipated growth is notable given analysts' expectations of continued revenue growth and margin improvements. However, it's essential to consider that aggressive reinvestment in strategic partnerships and loan platform expansions may lead to short-term margin pressures amidst a risk of overvaluation if expected gains are delayed. Over a three-year period, SoFi's total shareholder returns, encompassing share price appreciation and dividends, reached 82.02%. This robust performance indicates significant investor confidence and aligns well with broader market gains. In contrast, while SoFi's one-year return exceeded that of the US Consumer Finance industry, showing positive relative performance, it's worth noting the volatility that accompanied these gains in recent months. SoFi's current share price of US$15.78 reflects a slight discount to the consensus analyst price target of US$13.29, implying an 18.7% expected decline as perceived by analysts. This suggests that while the company is underpinned by strong revenue and earnings potential, analysts may consider the market's current valuation as somewhat optimistic. Investors are encouraged to critically evaluate these forecasts in relation to their expectations of the company's future growth and profitability. Our valuation report unveils the possibility SoFi Technologies' shares may be trading at a premium. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:SOFI. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Forbes
07-04-2025
- Business
- Forbes
Does SOFI Stock's 25% Fall Make It A Buy At $9?
The SoFi Technologies, Inc. logo appears on a smartphone screen in this illustration photo in Reno, ... More United States, on December 20, 2024. (Photo by Jaque Silva/NurPhoto via Getty Images) SoFi Technologies (NASDAQ:SOFI),a digital financial company that offers a range of products and services, including banking, lending, investing, and insurance, has seen its stock plunge nearly 25% in the past thirty days. This downturn can be largely attributed to growing anxieties surrounding the broader economic outlook. President Donald Trump's recent announcement of sweeping tariffs on goods from over 100 countries has heightened concerns about its potential negative impact on the U.S. economy and consumer spending. This situation is further aggravated by China's retaliatory tariffs, which are higher than anticipated and are fueling an escalating global trade war, resulting in a significant downturn in global markets. For SOFI specifically, these macroeconomic headwinds present several challenges. Persistent inflation could prevent the U.S. Federal Reserve from implementing further interest rate cuts, which would negatively impact SOFI's lending business. Furthermore, a potential economic recession would likely dampen demand for SOFI's financial services. We believe that SOFI stock looks unattractive - making it a bad pick to buy at its current price of around $9. We believe there are a couple of concerns with SOFI stock, which makes it unattractive given that its current valuation looks very high. We arrive at our conclusion by comparing the current valuation of SOFI stock with its operating performance over the recent years as well as its current and historical financial condition. Our analysis of SoFi Technologies along key parameters of Growth, Profitability, Financial Stability, and Downturn Resilience shows that the company has a moderate operating performance and financial condition, as detailed below. That said, if you seek upside with lower volatility than individual stocks, the Trefis High-Quality portfolio presents an alternative - having outperformed the S&P 500 and generated returns exceeding 91% since its inception. Going by what you pay per dollar of sales or profit, SOFI stock looks expensive compared to the broader market. SoFi Technologies' Revenues have grown considerably over recent years. SoFi Technologies' profit margins are around the median level for companies in the Trefis coverage universe. SoFi Technologies' balance sheet looks fine. SOFI stock has fared much worse than the benchmark S&P 500 index in the last economic downturn. While investors have their fingers crossed for a soft landing by the U.S. economy, how bad can things get if there is another recession? Our dashboard How Low Can Stocks Go During A Market Crash captures how key stocks fared during and after the last six market crashes. In summary, SoFi Technologies' performance across the parameters detailed above are as follows: Despite SOFI's seemingly neutral performance when considering the above factors, its very high valuation makes us believe the stock is not a compelling buy at its current price. While you would do well to avoid SOFI stock for now, you could explore the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stocks benchmark (combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to produce strong returns for investors. Why is that? The quarterly rebalanced mix of large-, mid- and small-cap RV Portfolio stocks provided a responsive way to make the most of upbeat market conditions while limiting losses when markets head south, as detailed in RV Portfolio performance metrics. SOFI Return Compared With Trefis Reinforced Portfolio Invest with Trefis Market Beating Portfolios | Rules-Based Wealth
