SoFi Stock: Why Buying Before Jan. 27 Could Be a Smart Move

SoFi Technologies (SOFI) ended 2024 with a 55% rise, despite a challenging year. The fintech company's non-lending services grew, adding millions of new members and increasing revenue per product from $53 to $81. The lending segment ended the year in better shape than expected, and SoFi's non-lending segments showed higher growth rates. The financial services segment contributed $100 million in profit in Q3 2024, up significantly from $3.3 million in Q3 2023. SoFi's strategy of attracting customers with one product and upselling them to higher-priced products is working, and the company's stock may be a good buy before Jan. 27.

In a year marked by economic uncertainty, SoFi Technologies (SOFI) managed to defy the odds, posting a remarkable 55% rise in its stock price. This impressive performance was driven by the fintech company's strategic focus on expanding its non-lending services, which not only added millions of new members but also increased revenue per product.

According to SoFi's Q1 2024 financial report [1], the company's Financial Services and Tech Platform segments experienced a combined 54% growth in revenue. This growth was instrumental in offsetting the more conservative approach taken in the Lending segment, which saw flat revenue due to macroeconomic uncertainty.

SoFi's non-lending segments demonstrated higher growth rates than the lending segment throughout the year. The company's strategy of attracting customers with one product and upselling them to higher-priced services is proving to be effective. This approach, combined with the company's focus on sustainability and profitability, has positioned SoFi as a strong contender in the digital financial services market.

The financial services segment contributed $100 million in profit in Q3 2024 [1], up significantly from $3.3 million in Q3 2023. This substantial increase in profitability is a testament to SoFi's successful execution of its growth strategy.

SoFi's stock may be a good buy before Jan. 27, as the company continues to show resilience and growth in a challenging economic environment. With a strong focus on expanding its non-lending services, maintaining profitability, and growing its member base, SoFi Technologies is well-positioned for continued success in 2025 and beyond.

[1] SoFi Technologies, Inc. (2024, April 29). SoFi Technologies Reports Q1 2024 Net Revenue of $645 Million and Net Income of $88 Million, Marking Second Consecutive Quarter of GAAP Profitability. Business Wire. https://www.businesswire.com/news/home/20240429005544/en/