SoFi Technologies Shares Rise 5.42% Amid Moderate Bullish Activity

SoFi Technologies shares have increased by 5.42% to $23.64, with moderately bullish activity. Options volume is near average, with calls leading puts for a put/call ratio of 0.39. Implied volatility has dropped 1.04, suggesting an expected daily move of $0.78, and put-call skew has flattened, indicating a modestly bullish tone.

SoFi Technologies shares have experienced a significant increase of 5.42% to $23.64, reflecting moderately bullish activity in the market. Options volume is near average, with calls leading puts, resulting in a put/call ratio of 0.39. Implied volatility has decreased by 1.04, suggesting an expected daily move of $0.78, and the put-call skew has flattened, indicating a modestly bullish tone.

SoFi Technologies (SOFI) has been a prominent player in the fintech sector, known for its innovative approach to consumer banking. The company has been adding millions of new customers annually, leveraging its proprietary technology platform to avoid high software vendor costs [1]. This growth has been driven by several key factors.

Firstly, SoFi's user growth has been exceptional. The company has seen a rapid increase in its member base, with 5.3 million members using 7.9 million products at the end of 2022, growing to 11.7 million members using 17.1 million products by the end of June 2025 [1]. This growth is particularly notable given the challenges traditional banks face in attracting new customers.

Secondly, SoFi's room to continue growing is substantial. Many customers start with one product, such as a personal loan or checking account, and are then encouraged to engage with additional products like mortgages or stock brokerage accounts. In the second quarter of 2025 alone, SoFi added 1.3 million new products, equating to 1.5 products per new customer added [1]. With brand awareness recently reaching an all-time high but still only 91.5% of Americans having heard about SoFi Technologies, there is significant room for further expansion.

Lastly, SoFi's acquisition of Galileo in 2020 has provided it with a robust technology platform that supports a wide range of financial services. This platform not only reduces technology expenses but also generates significant revenue. In the second quarter of 2025, the technology segment contributed $110 million in revenue, with over 30% of this revenue hitting the bottom line [1].

However, there are also reasons to be cautious. The stock has been trading at an extremely high valuation, with a tangible book value multiple of 5.5, compared to the more typical 2 times for well-established consumer banks. Additionally, while SoFi has shown strong credit performance so far, its long-term credit performance remains untested, particularly in the face of a potential recession [1].

Market sentiment is mixed, with analysts providing varying predictions. Jim Cramer has been bullish on the stock, while Cathie Wood has sold millions worth of shares. Barclays has an Equal Weight rating with an $18 price target, and Needham maintains a Buy rating with a $25 target price [2].

In conclusion, SoFi Technologies shares have shown strong performance, driven by exceptional user growth, substantial room for expansion, and a robust technology platform. However, the stock's high valuation and untested long-term credit performance present risks. Investors should carefully consider these factors before making investment decisions.

References:
[1] https://www.fool.com/investing/2025/08/12/3-reasons-to-buy-sofi-technologies-stock-now-and-2/
[2] https://247wallst.com/forecasts/2025/08/08/sofi-technologies-sofi-price-prediction-and-forecast-2025-2030/