💥 Missed SoFi’s 59% Run? Here’s Why You Still Have Time to Jump In!

Let’s talk about SoFi Technologies (NASDAQ: SOFI), the fintech that’s been on everyone’s radar but hasn’t quite exploded—until now. If you’ve been sitting on the sidelines, wondering when the right time to jump in is, you’re not alone. With the stock rallying over 59% since mid-summer 2024, you might be thinking you missed the boat. But here’s the thing: this could just be the start of a much bigger move. So, what’s driving SoFi’s recent resurgence, and where is the stock headed next? Buckle up because we’re diving deep into what’s happening behind the scenes at this fintech juggernaut.

The $2 Billion Deal That’s Turning Heads

Here’s the headline that’s got everyone buzzing: SoFi just inked a $2 billion deal with Fortress Investment Group to expand its personal loan platform. That’s a huge deal, especially at a time when interest rates have been sky-high, squeezing the lending market. The significance of this deal cannot be overstated. SoFi is using this cash infusion to fuel its personal loan business, which has already been a key growth driver for the company.

And here’s the kicker: personal loans are just one part of SoFi’s rapidly expanding empire. SoFi also offers everything from student loans to mortgages, deposit accounts, and investment services. Their Galileo payment processing platform is another asset that’s going to see significant upside from this deal. What’s more, the company’s membership is surging, with over 4 million active members as of 2023, and that number is growing rapidly​. When you combine that kind of customer base with more capital to lend, you’re looking at a recipe for long-term growth.

Why Has SoFi Stock Been Surging?

So, why is SoFi stock up 59% since mid-2024? The answer lies in a perfect storm of macroeconomic trends and internal improvements. First, we’ve seen some relief in interest rates, with the Federal Reserve signaling potential rate cuts. This makes borrowing more attractive for consumers, which is a sweet spot for SoFi’s business model. In fact, SoFi’s deposit base has expanded significantly, giving the company more funds to issue loans at lower costs—exactly what you want in a fintech company​.

Another reason for the surge? SoFi’s financial performance has been better than expected. The company reported earnings of $0.01 per share for the second quarter of 2024, beating analysts' expectations. Revenue was also up, thanks in large part to its growing customer base and increased cross-selling of its products. For example, in 2021, the ratio of financial services to lending products was 2.7x. Fast forward to 2024, and that ratio has ballooned to 6.2x, meaning SoFi’s customers are using more of its products and services​.

How Does SoFi Stack Up Against Competitors?

If you’re comparing SoFi to other fintechs like Upstart (UPST) or LendingClub (LC), SoFi comes out on top in several key areas. First and foremost, SoFi’s acquisition of a banking license in 2022 was a game-changer. This allows the company to hold customer deposits and issue loans, which gives it a competitive edge over fintechs that rely solely on third-party funding. It also enables SoFi to offer better rates on loans and deposits, which is a huge draw for its tech-savvy, millennial customer base.

Moreover, SoFi has done a great job expanding its ecosystem. The company isn’t just a lender; it’s also a one-stop shop for financial services, including stock trading, cryptocurrency, and even insurance products. This diversification sets it apart from competitors that are more narrowly focused on lending. In fact, SoFi’s stock trading and investment services are seeing massive growth, with the company now offering over 30 different crypto assets for trading​.

The Numbers Don’t Lie: SoFi’s Financials are on the Upswing

Let’s dive into the numbers because they paint a pretty compelling picture. SoFi’s stock has fluctuated between $6.01 and $10.65 over the past 12 months, with its current price around $10.42 as of October 23, 2024​. That’s still well below its all-time high of $22.65, so there’s plenty of room for upside if the company continues executing its growth strategy.

One stat that jumps out is SoFi’s expected earnings growth. The company is projected to grow earnings by a staggering 160% over the next year, from $0.10 to $0.26 per share​. Even more impressive is the fact that SoFi’s revenue growth is expected to accelerate in 2025, thanks to its expanding loan portfolio and growing deposit base. This combination of earnings growth and revenue expansion makes SoFi a compelling growth stock, especially for long-term investors.

But it’s not all sunshine and rainbows. SoFi’s price-to-earnings ratio is currently negative (-43.42), which means the company is still not profitable on a traditional earnings basis​. That said, many high-growth companies in the fintech space operate at a loss as they invest heavily in scaling their operations. So, while profitability might not come immediately, the long-term potential is undeniable.

What’s Next for SoFi?

The big date to circle on your calendar is October 29, 2024. That’s when SoFi will release its Q3 earnings report, and analysts are expecting a solid performance. If SoFi beats expectations again, we could see another leg up in the stock price. And given the momentum the company has built over the past few months, it wouldn’t be surprising to see SoFi continue to outperform the broader market.

SoFi’s future growth is likely to come from its expanding loan platform, increased member growth, and the cross-selling of its ever-expanding suite of financial products. The company’s recent partnership with Fortress Investment Group is just one of several strategic moves aimed at boosting profitability and market share. Additionally, SoFi’s investments in technology, particularly its Galileo payment processing platform and its Technisys cloud banking software, will likely pay dividends in the form of cost savings and operational efficiencies​.

Conclusion: Why You Should Keep an Eye on SoFi

So, is SoFi the fintech stock to watch in 2025? Absolutely. With a growing customer base, expanding loan portfolio, and a well-timed $2 billion cash infusion, SoFi is positioning itself for long-term success. The company has proven its ability to adapt to changing market conditions and continues to innovate with new products and services. While there are risks—particularly around credit performance and profitability—SoFi’s growth trajectory is hard to ignore.

In my opinion, SoFi is one of the most compelling growth stories in the fintech space right now. If you’re looking for a stock with both near-term catalysts and long-term potential, SoFi deserves a spot on your watchlist. With earnings just around the corner, now might be the perfect time to start paying closer attention.

What do you think? Are you bullish on SoFi, or are you waiting for more proof? Either way, it’s clear that SoFi is a fintech player that’s not slowing down anytime soon.

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