SoFi Technologies: A Potential Stock Bargain Amidst Volatility

SoFi Technologies shows promising fundamentals despite a recent stock drop. Investors could find a lucrative opportunity with the company as it anticipates solid revenue and EPS growth in 2025.

Date: 11-03-2025

AI Rating: 6

The recent report outlines significant developments in SoFi Technologies (NASDAQ: SOFI) amidst broader market volatility, particularly the Nasdaq entering a correction phase. Earnings and Growth are key indicators mentioned; SoFi reported a 26% revenue growth in 2024, reaching an all-time high. This growth reflects a robust business performance that contradicts the stock's decline.

Additionally, it produced the highest adjusted earnings per share (EPS) and net income in its history. This marked SoFi's first full year of profitability, which indicates improved financial health and operational efficiency.

Furthermore, the tangible book value increased by 39% in the same year, showcasing strong asset growth. With an expanding membership base of 10.1 million, which is up 34% year-over-year, SoFi is positioned for continued growth.

The company's business model evolution, particularly in loan origination and technological scaling through the Galileo platform, shows potential for recurring revenues. They are also diversifying their offerings with new credit card products poised to leverage their affluent membership base.

Future projections highlight expected revenue growth of 25% in 2025 and a remarkable 73% diluted EPS growth, indicating management's anticipated continued success. The report emphasizes that despite the current stock valuation drop, the business fundamentals remain intact, and nothing fundamental has changed negatively.

However, caution is advised. Potential future risks exist if the economy enters a recession, which may impact loan demand and increase default rates. Therefore, while the growth outlook appears strong, investors should weigh potential risks against the promising opportunities presented by SoFi's robust performance metrics.

Stocks: SOFI