After soaring to nearly $28 per share during the SPAC-fueled fintech boom in 2021, SoFi Technologies (SOFI) crashed back to earth, trading under $5 as rising interest rates, regulatory headwinds, and lack of profitability dimmed investor optimism. But the tide has turned.
Over the past year, SoFi has reshaped its business and posted significant growth. Shares are now up 247% since our previous bullish call at $6. With the company now profitable and diversifying revenue, we'd argue there’s still upside ahead.
💼 A Stronger, Diversified Business
SoFi has evolved from a student loan-focused lender into a full-spectrum fintech platform. It now operates across:
Lending: $413M in Q1 revenue
Financial Services (consumer banking): $303M
Technology Platform (B2B): $103M
While lending still makes up the majority, the tech and services segments are growing fast—especially financial services, which doubled revenue YoY and tripled profit. SoFi's white-label platform also gives it a SaaS-like recurring revenue profile.
Q1 results showed:
Revenue: $770M (+33% YoY)
EPS: $0.06, with a $31M revenue beat
This business mix gives SoFi more stability and better scalability than many traditional financial firms.
💰 Valuation: Pricey vs. Banks, Cheap vs. Fintech
Critics point to SoFi’s rich valuation—trading at over 8x sales—as a concern. But when compared to other fintechs like NuBank (12x sales) and Robinhood (28x), SoFi looks much more reasonably priced.
On a forward earnings basis, SoFi trades at ~32x GAAP EPS, and if growth continues, this could drop below 30x. That’s appealing for a company expected to grow:
Revenue: ~25% annually
Net income: ~33% annually
By 2027, analysts project $1B in operating income, double today’s figure. If SoFi maintains current valuation multiples, this alone could double the stock in 3 years.
⚠️ Risks to Watch
Regulatory scrutiny in the financial sector
Cyclicality of consumer lending
Intense competition from firms like Robinhood, Chime, and Coinbase
Despite these challenges, SoFi’s expanding ecosystem and growing brand strength position it well.
✅ Final Take: Still a 'Strong Buy'
With accelerating revenue, expanding margins, and a scalable business model, SoFi has moved beyond its hype-fueled origins and is now a real fintech contender. Even after its rally, its valuation still leaves room for meaningful upside.
Rating: Strong Buy
Over the past year, SoFi has reshaped its business and posted significant growth. Shares are now up 247% since our previous bullish call at $6. With the company now profitable and diversifying revenue, we'd argue there’s still upside ahead.
💼 A Stronger, Diversified Business
SoFi has evolved from a student loan-focused lender into a full-spectrum fintech platform. It now operates across:
Lending: $413M in Q1 revenue
Financial Services (consumer banking): $303M
Technology Platform (B2B): $103M
While lending still makes up the majority, the tech and services segments are growing fast—especially financial services, which doubled revenue YoY and tripled profit. SoFi's white-label platform also gives it a SaaS-like recurring revenue profile.
Q1 results showed:
Revenue: $770M (+33% YoY)
EPS: $0.06, with a $31M revenue beat
This business mix gives SoFi more stability and better scalability than many traditional financial firms.
💰 Valuation: Pricey vs. Banks, Cheap vs. Fintech
Critics point to SoFi’s rich valuation—trading at over 8x sales—as a concern. But when compared to other fintechs like NuBank (12x sales) and Robinhood (28x), SoFi looks much more reasonably priced.
On a forward earnings basis, SoFi trades at ~32x GAAP EPS, and if growth continues, this could drop below 30x. That’s appealing for a company expected to grow:
Revenue: ~25% annually
Net income: ~33% annually
By 2027, analysts project $1B in operating income, double today’s figure. If SoFi maintains current valuation multiples, this alone could double the stock in 3 years.
⚠️ Risks to Watch
Regulatory scrutiny in the financial sector
Cyclicality of consumer lending
Intense competition from firms like Robinhood, Chime, and Coinbase
Despite these challenges, SoFi’s expanding ecosystem and growing brand strength position it well.
✅ Final Take: Still a 'Strong Buy'
With accelerating revenue, expanding margins, and a scalable business model, SoFi has moved beyond its hype-fueled origins and is now a real fintech contender. Even after its rally, its valuation still leaves room for meaningful upside.
Rating: Strong Buy
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.