SoFi Stock Surges 139% Amid Fintech Rally, Valuation Concerns Loom

SoFi Technologies shares closed at $15.07 despite a 0.89% daily dip, capping a 139% annual rally fueled by sector-wide Optimism following Chime's successful IPO. The fintech's financial services unit doubled revenue year-over-year, with management projecting 60-65% growth this year.

Valuation metrics raise eyebrows—SoFi trades at 5.9x sales versus the S&P 500's 3.1x, while its 32.9 P/E ratio exceeds the index's 26.9. This premium pricing comes despite robust fundamentals: $2.8 billion in revenue represents 25.9% annual growth, prompting raised 2025 guidance to $3.3 billion top-line and $890 million EBITDA.

Market observers note potential catalysts including Fed rate cuts boosting lending demand, though historical volatility during downturns warrants caution. The stock's 17.66% monthly gain reflects renewed appetite for fintech exposure after last year's IPO drought.