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SoFi vs. Palantir: Wall Street's 2025 Earnings Expectations

Eli GrantWednesday, Nov 20, 2024 5:53 am ET
4min read
SoFi Technologies (SOFI) and Palantir Technologies (PLTR) are two tech-driven companies with contrasting business models and market positions, yet both are expected to see significant earnings growth in 2025. SoFi, a digital financial services platform, is projected to increase earnings by 48%, while Palantir, a software company specializing in big data analytics, is expected to grow by 115%. This article explores the factors contributing to their respective earnings growth projections and the strategic initiatives that set them apart.

SoFi's earnings growth is driven by its expansion into the Financial Services and Tech Platform segments. In Q1 2024, these segments combined grew 54% and represented 42% of consolidated adjusted net revenue (Source: SoFi Technologies, Inc. Investors). SoFi's focus on diversifying revenue streams and growing its member base has contributed to its strong earnings outlook. Additionally, SoFi's balance sheet has been strengthened through strategic transactions, reducing upcoming maturities and improving its total capital ratio to 17.3%.

Palantir's earnings growth is fueled by its Government segment, which accounts for a significant portion of its revenue. In Q1 2024, Palantir's Government segment revenue grew 26% year-over-year (Source: Palantir Technologies, Inc. Investors). Palantir's strategic investments in its Foundry platform and expansion into commercial markets have also contributed to its robust earnings growth projections.



Both companies' balance sheet strengths and regulatory capital ratios indicate their ability to sustain and accelerate earnings growth. SoFi's tangible book value growth of 16% sequentially, ending the quarter at $4.1 billion, and its improved total capital ratio of 17.3% reflect its financial health. Palantir's strong cash and equivalents position of $2.3 billion as of Dec 31, 2023, demonstrates its liquidity and capacity for growth.

ACHR, AEMD, AIM, ALAB, ALGS...Market Cap, Turnover Rate


In conclusion, SoFi and Palantir's distinct business models, market positions, and strategic initiatives contribute to their respective earnings growth projections. SoFi's focus on financial services and tech platforms, along with its balance sheet strengthening, sets the stage for its projected 48% earnings increase. Palantir's focus on its Government segment, platform investments, and commercial market expansion has contributed to its 115% earnings growth projection. Investors should monitor these companies' progress and adapt their portfolios accordingly to capitalize on their respective growth opportunities.
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NEYO8uw11qgD0J
11/20
$PLTR I'm not the most experienced trader out there, but I managed to make a small profit by selling some calls at 61, even though it was less than the 63 I could have made. I then re-entered a long position around 60. I rely on Palantir daily and it's truly a remarkable software. It's a game-changing tool in my trading space.
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MustiXV
11/20
$PLTR is undergoing clear consolidation in the 60s, setting the stage for a sharp move to 70.
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anonymus431
11/20
$PLTR Be careful, this one’s headed back down to the 40s.
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wodentx
11/20
$PLTR Folks, be cautious. Prices are heading back towards the 40s.
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kenton143
11/20
$SOFI It's well-deserved! Just look at the impressive growth this stock has seen. $20 is within reach!
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Outrageous-Rate-4080
11/20
$PLTR Yesterday, $PLTR rallied from red to green, and today's momentum looks even more promising. Meanwhile, NVDA surpassing ER has increased optimism, further boosting $PLTR’s prospects.
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liano
11/20
$SOFI About to receive a $20 dividend.
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LonnieJaw748
11/20
$PLTR This could be a solid long-term investment, but it's not worth buying at the current price. They're doing well, but not well enough to justify this valuation. It's going to correct. I would advise caution when entering the wave. Also, keep in mind the numerous analysts who are valuing it ridiculously low. Not ideal, but we'll see how it performs in the short term. And how many investors will buy at this price?
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KookyPossibleTheme
11/20
Are we seeing a close above $15 for $SOFI today?
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neurologique
11/20
$SOFI
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Ironman650
11/20
$PLTR: Continuation of the cycle with more potential for growth.
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S_H_R_O_O_M_S999
11/20
$PLTR I got in at $25, sold some shares at $17, held on as it dipped to $6, and bought back at $11. With the roller coaster ride over, there's no reason to exit now.
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Woleva30
11/20
$PLTR Hey everyone, I hope you're doing well! This week, the market has been quite intriguing, and amidst the bearish calls to "grab your profits or hold the bags," I see things differently. Remember, "fear doesn't make money." If we sold every time our stocks dipped, we'd likely miss out on substantial gains. Palantir Technologies is a robust company with a bright future ahead, especially with the economy moving upwards and influential figures supporting PLTR. For those of us who have been invested since $16, our plan is to stay put until we see $100+—and beyond that, we'll continue to hold stock in this amazing company.
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Sjgreen
11/20
$PLTR
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Antinetdotcom
11/20
$SOFI seems set to start the day at a new yearly high! This is excellent news, as the algorithms instantly seize opportunities in stocks with momentum, driving further upside potential!
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