SoFi Technologies said that it will soon offer its own stablecoin on Ethereum, following the company’s re-entry into crypto last month. https://t.co/0tu3MF00P9 ...

Group 1 - SoFi Technologies is expanding its cryptocurrency offerings with the launch of SoFiUSD, a fully reserved U.S. dollar stablecoin, issued by SoFi Bank, N.A. This stablecoin is backed 1:1 by cash for immediate redemption capability [4]. - Carvana, Comfort Systems, and CRH are set to join the S&P 500 index, leading to a significant increase in their stock prices [4][5]. - SoFi's stock experienced a decline following news of a $1.5 billion public offering, despite the company reporting earnings and revenue beats amid record member additions [7]. Group 2 - The stock market has stepped back from all-time highs, but IBD 50 stocks, including AppLovin, continue to perform well [9]. - The CPI inflation data has shown a cooling trend, surprising Wall Street and contributing to a rally in the S&P 500 [6]. - Data centers are experiencing growth, although there is a backlash regarding electricity rates associated with this expansion [6].

SoFi launches SoFiUSD stablecoin to offer settlement infrastructure for banks and fintechs https://t.co/yr9MNiOWpN ...

Core Insights - SoFi Bank has launched its own stablecoin, SoFiUSD, on the public blockchain, fulfilling previous plans to integrate cryptocurrency into its services [1][2] Company Developments - The launch of SoFiUSD allows SoFi to offer its stablecoin infrastructure to other banks and fintechs, enabling them to white-label SoFi's stablecoin, which will be interchangeable with SoFiUSD [3] - CEO Anthony Noto emphasized that blockchain represents a transformative technology for finance, stating that SoFi is leveraging its decade-long infrastructure to address real-world financial challenges [4] Industry Context - SoFi claims to be the first national bank to launch a stablecoin on the public blockchain, distinguishing itself from other banks like JPMorgan Chase and Société Générale, which have launched private stablecoins [6] - The recent passing of the Genius Act has prompted other banks, including Citi and PNC, to explore stablecoin issuance through partnerships with Coinbase's crypto-as-a-service arm [7] - The Federal Deposit Insurance Corp. (FDIC) is moving to implement rules for banks to issue payment stablecoins, acknowledging uncertainty about how many banks will pursue this opportunity [8][9]

Industry Overview - The global payments industry is experiencing a positive growth environment, driven by the transition to digital and electronic payment methods, with consumer spending continuing to grow [2] - The U.S. central bank has lowered interest rates three times in 2025, which supports consumer spending and improves credit conditions, potentially boosting payment volumes [3][4] - Companies in the payment industry are pursuing mergers and acquisitions to diversify their revenue streams and stabilize their top line [5] Growth Drivers - The quality of growth in the payments space is improving, with revenues increasingly driven by value-added services such as fraud prevention and data analytics [6] - Continued innovation and enhanced security in transactions are expected to benefit payment companies [7] - Real-time and account-to-account payments are gaining traction, increasing overall transaction frequency and creating a favorable backdrop for payment stocks [8] Company Highlights - **Capital One Financial Corp. (COF)**: Expected to benefit from growing consumer loan demand, solid credit card operations, and opportunistic buyouts, with a projected earnings growth of 1.5% and revenue growth of 17.4% for 2026 [10][11][12] - **OppFi Inc. (OPFI)**: Focus on AI and machine learning is expected to improve operating efficiency and support margin expansion, with projected earnings growth of 8.6% and revenue growth of 9.1% for 2026 [13][14] - **SoFi Technologies, Inc. (SOFI)**: Innovation and an expanding digital financial ecosystem are expected to drive growth, with projected earnings growth of 62.9% and revenue growth of 25.4% for 2026 [15][16]

Core Insights - SoFi Technologies, Inc. has been recognized as a "one-stop shop for digital financial services" but has historically underperformed compared to the broader market [1] - Recent market trends indicate a shift, with SoFi starting to gain traction in late 2024 and continuing into the current year [1] Company Performance - SoFi Technologies has seen a change in market perception, with improvements noted in its performance metrics [1] - The company is positioned within the digital financial services sector, which is experiencing growth and increased interest from investors [1] Market Trends - The broader market has begun to acknowledge SoFi's potential, suggesting a positive outlook for the company's future performance [1] - The digital financial services industry is evolving, with companies like SoFi adapting to meet changing consumer demands and preferences [1]

Let's bring in Sofi's Liz Thomas, New York Life Investments Lauren Goodwin, Morgan Stanley, Wealth Management's Ellen Zner. It's great to have everybody here on the desk with us. All right, Liz, you first.What do you think about what Mr. . Lakos had to say. Base case 7500, bull case 8,000.>> So, when I look at in 2026, first of all, to your point, not a lot of bears to be found. And I think that's warranted. There aren't a lot of really strong reasons to be bearish into 2026 aside from looking at the market ...

Industry Overview - The global payments industry is experiencing a positive growth environment, driven by the transition to digital and electronic payment methods, with consumer spending on the rise [1] - Cards, digital wallets, and online checkouts are steadily replacing cash, leading to a consistent volume boost and long-term revenue prospects for leading payment companies [1][10] - Monetary policy has become a modest tailwind, with the U.S. central bank lowering interest rates three times in 2025, which is expected to support consumer spending and improve credit conditions [2][3] Growth Drivers - Lower interest rates are anticipated to enhance consumer spending and credit conditions, which will positively impact payment volumes heading into 2026 [3][10] - Companies in the payment industry are pursuing mergers and acquisitions to diversify their revenue streams and stabilize their top line [4] - The quality of growth in the payments space is improving, with revenues increasingly driven by value-added services such as fraud prevention and data analytics [4] Company Highlights - Capital One Financial Corporation (COF) is expected to benefit from growing consumer loan demand, solid credit card operations, and opportunistic buyouts, with a projected earnings growth of 1.5% and revenue growth of 17.4% in 2026 [8][9] - OppFi Inc. (OPFI) is focusing on AI and machine learning to improve operational efficiency, with earnings and revenue growth estimates of 8.6% and 9.1% respectively for 2026 [12][13] - SoFi Technologies, Inc. (SOFI) is enhancing its digital financial ecosystem and is projected to see significant earnings growth of 62.9% and revenue growth of 25.4% in 2026 [16][17] Stock Performance - Capital One Financial shares have gained 32.4% over the past year, while the industry has risen by 54.5%, and it currently holds a Zacks Rank 1 [11] - OppFi's shares have increased by 38.4% in the past year, contrasting with the industry's decline of 9.6%, and it also holds a Zacks Rank 1 [13] - SoFi's shares have soared 55% over the past year, while the industry has fallen by 12.6%, and it carries a Zacks Rank 2 [17]

Industry Overview - The global payment landscape is rapidly evolving due to digitalization, technological innovation, regulatory changes, and shifting consumer expectations, leading to the rise of alternative payment methods such as account-to-account payments, real-time payments, digital wallets, and cryptocurrencies [2] - The digital payment market was valued at approximately $114.4 billion in 2024 and is projected to reach $361.3 billion by 2030, indicating a compound annual growth rate (CAGR) of 21.4% from 2025 to 2030 [3] - Digital wallets are expected to capture a larger share of global commerce, with payment revenues continuing to rise as the economy shifts towards cashless transactions [5] Company Insights: SoFi Technologies, Inc. - SoFi is positioned as a member-centric financial services provider, focusing on online banking and a broad product ecosystem, which allows it to benefit from the increasing demand for digital financial platforms [6][7] - The company is experiencing growth due to lower interest rates, which enhance its lending business, and its innovative approach, including new product launches and strategic partnerships [8] - SoFi's earnings are projected to increase significantly, with a 140% year-over-year jump expected in 2025 and a 62.9% increase in 2026, while its shares have risen by 78.9% in the past six months [11] Company Insights: Block, Inc. - Block, known for its Cash App, is expanding its offerings beyond payments to include banking, commerce, and investing, which has contributed to its growth [12][14] - The company has introduced new features like Square AI and Cash Advance programs, enhancing its service offerings and user engagement [13] - Despite strong performance, Block faces challenges from economic uncertainty and competition, which may impact transaction volumes and margins [15] Company Insights: Circle Internet Group - Circle operates as a platform for stablecoin and blockchain applications, primarily known for its USDC stablecoin, which is fully backed by U.S. Treasuries [17][18] - The company is experiencing growth through its Circle Payments Network, which has reached an annualized transaction volume of $3.4 billion, and its Layer-1 blockchain, Arc, is gaining traction [19] - Circle's profitability is affected by interest rates, regulatory changes, and competition, with earnings projected to surge by 205.3% in 2026 [21]

Group 1 - The article promotes a subscription service called Beyond the Wall Investing, which provides high-quality analysis of Wall Street buying and selling ideas [1] - Daniel Sereda, the chief investment analyst, manages investments across various asset classes and regions, emphasizing the importance of filtering information to identify critical investment ideas [1] - The investing group offers access to information prioritized by institutional market participants, enhancing the analytical capabilities of its subscribers [1]