Why Wall Street’s Big Money Can’t Get Enough of SoFi (SOFI) Stock

Institutional investors are flooding billions into SoFi Technologies—here’s why the fintech disruptor keeps winning over the suits.

The Neo-Bank Playbook: Student Loans, Super Apps, and Skyrocketing Growth

SoFi’s not just refinancing debt anymore. With its all-in-one finance app stealing market share from legacy banks, even hedge fund skeptics are conceding: this might be the rare fintech that actually scales.

Short Sellers Beware: The Bets Are Stacking Up

Latest 13F filings reveal asset managers doubling down—turns out, combining crypto trading with mortgage approvals makes for sticky customers (and juicier revenue multiples). Who knew?

The Cynic’s Corner

Let’s see how long the love lasts when the next Fed rate hike hits those unsecured personal loans. But for now? The smart money’s betting on the anti-bank. *For once.*

TLDR

• SoFi closed at $14.39, up 2.06% in latest trading session, outperforming the S&P 500’s 0.55% gain
• Company expects massive 500% earnings increase for upcoming quarter with projected EPS of $0.06
• Revenue projected to grow 34.53% to $803.09 million for the quarter, driven by expanding deposit base
• Full-year forecasts show 80% earnings growth and 26.15% revenue growth to $3.29 billion
• Strong institutional demand for loans with $5 billion commitments each from Fortress and Blue Owl Capital

SoFi Technologies stock jumped 2.06% to close at $14.39 in the most recent trading session. The fintech company outpaced the broader market’s performance.

The stock has gained 0.43% over the past month. This trails the Finance sector’s 3.04% gain and the S&P 500’s 6.29% advance during the same period.

Investors are looking ahead to SoFi’s upcoming earnings release with considerable interest. Analysts project earnings per share of $0.06 for the quarter. This represents a 500% increase compared to the same quarter last year.

Revenue expectations are equally strong. The consensus estimate calls for $803.09 million in quarterly revenue. This WOULD mark a 34.53% jump from the prior year period.

For the full year, analysts forecast earnings of $0.27 per share. This represents 80% growth compared to the previous year. Revenue projections stand at $3.29 billion, indicating 26.15% growth.

Banking Charter Powers Growth

SoFi’s 2022 acquisition of Golden Pacific Bancorp transformed the company’s business model. The banking charter allows SoFi to accept deposits and retain loans on its balance sheet. This capability has driven rapid deposit growth.

Total deposits have expanded to $25.9 billion, representing 39% growth. The deposit base provides a stable funding source for the company’s lending operations. Net interest income has grown substantially as a result.

Technology Platform Expansion

The company has invested in technology platforms including Galileo and Technisys. These investments position SoFi to provide back-end banking services to nonbanking companies. The technology segment generates steady, fee-based revenue.

This diversification helps SoFi stand out in the competitive fintech landscape. The platform business offers higher margins than traditional lending operations.

SoFi achieved GAAP profitability for the first time in a full fiscal year last year. Earnings per share of $0.39 exceeded analyst estimates. The company posted another profitable quarter in Q1 with EPS of $0.06.

First quarter revenue reached $771 million, up 33% from the same period last year. Total revenue for 2024 hit $2.67 billion, representing 26% growth.

The company has secured strong institutional backing for its loan business. Fortress Investment Group committed up to $5 billion in loan purchases. Blue Owl Capital agreed to a similar $5 billion commitment.

These partnerships allow SoFi to originate loans while shifting risk to institutional investors. The model generates fee-based income without requiring SoFi to hold loans on its balance sheet.

SoFi has expanded beyond its original student loan focus. The company now offers personal loans, banking accounts, investment services, and financial planning tools. This diversification reduces dependence on any single product line.

The loan platform business refers pre-qualified borrowers to origination partners. This approach meets borrower demand while generating fee income. Partners retain ownership of the originated loans.

SoFi currently trades at a forward price-to-earnings ratio of 51.56. This represents a premium to the industry average of 11.24. The company’s PEG ratio stands at 2.45 compared to the industry average of 0.96.

The Zacks Consensus EPS estimate has moved 0.81% lower in the past month. SoFi currently holds a Zacks Rank of #3 (Hold). The Financial Miscellaneous Services industry ranks in the top 38% of all industries.

Alternative investors continue showing strong interest in SoFi’s loan products. The $2 billion original agreement with Fortress has expanded to $5 billion. The Blue Owl partnership adds another $5 billion in potential loan commitments.