Bank of America Maintains Bearish Stance on SoFi Despite Financial Services Growth
SoFi Technologies (SOFI) outperformed market expectations in Q1 2025, expanding its member base while its stock remains down 9% year-to-date. Bank of America acknowledges the strength of SoFi's Financial Services division—including SOFI Money and Invest—but cites valuation concerns as a persistent headwind.
Analyst Mihir Bhatia notes the segment's upgraded CAGR projection (50% to 65% for 2023-2026) reflects robust product monetization. The fintech's cross-selling strategy leverages this growth, yet institutional skepticism lingers over premium pricing in a volatile macro climate.