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SoFi Technologies: From Skepticism to Wall Street Darling
ByAinvest
Monday, Oct 13, 2025 3:09 pm ET2min read
SoFi Technologies has experienced a banner year, with high revenue growth and consistently positive earnings. Despite its rich valuation, the stock has more room to run as it remains poised for continued outsized earnings growth. The company's fixed costs and high operating leverage mean that moderate revenue growth translates into significant earnings growth. As membership and transaction volume growth persist, SoFi is expected to remain a Wall Street darling.
SoFi Technologies Inc. (NASDAQ: SOFI) has experienced a remarkable year, marked by high revenue growth and consistently positive earnings. Despite its rich valuation, the stock has more room to run as it remains poised for continued outsized earnings growth. The company's fixed costs and high operating leverage mean that moderate revenue growth translates into significant earnings growth. As membership and transaction volume growth persist, SoFi is expected to remain a Wall Street darling.The fintech company's stock has seen substantial appreciation, with a 149.8% increase from six months ago, outperforming the S&P 500 and the Nasdaq [1]. SoFi's CEO has set ambitious targets for the company, aiming for 30% member growth and 20% revenue growth [1]. The company has also expanded its product offerings, including new lending products, investment options, and insurance services, as well as venturing back into the crypto and blockchain space [1].
SoFi's recent financial performance has been impressive. The company's revenue has more than doubled in the past four years, while its net income has shown signs of improvement [1]. Despite increased operating costs, particularly in sales and marketing, the company has been effective in expanding its revenue and improving earnings per share (EPS) [1].
Key drivers of SoFi's stock performance include expanding its services, retaining customers, and obtaining a national banking charter. The company's strategy of cross-selling its wide array of financial products aims to increase the average number of products per customer, improving customer retention and lifetime value [1].
Wall Street remains cautious for now, with a one-year price target of $22.08, but some analysts are more bullish. 24/7 Wall St. has a $29.41 target price by year's end, representing a gain of more than 3% [1]. By the end of the decade, 24/7 Wall St. estimates SoFi's stock price will be $55.30 per share with 10% year-over-year revenue growth [1].
SoFi's recent earnings report showed earnings per share of $0.08, beating estimates, but revenue fell short of expectations at $519.37 million [2]. Despite this, the stock price has been on the rise, with analysts giving it a consensus rating of "Hold" and a target price averaging $20.18 [2]. Institutional investors own 38.43% of the company's stock, indicating strong interest in the company's growth prospects [2].
In conclusion, SoFi Technologies has demonstrated strong performance and growth potential. While the stock remains richly valued, its fixed costs and high operating leverage suggest that moderate revenue growth can translate into significant earnings growth. As the company continues to expand its services and retain customers, it is well-positioned to remain a Wall Street darling.
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