Dilok Klaisataporn/iStock via Getty Images Since then, SOFI has unfortunately pulled back by another -13.1% well underperforming the wider market at -2.5%. Despite so, we are maintaining our Buy rating, due to the promising growth in its top/ bottom lines as the management executes the dual pronged growth as both an online bank and a fintech. Combined with the growing bank deposits, the contribution to its lower cost funding, the promising reversal in its GAAP profitability, and the stock price's pullback, ...

The stock's plunge may not be warranted. SoFi Technologies (SOFI 5.06%) recently shifted from a hyped-up growth stock to a profitable fintech powerhouse. Some investors took their gains as SoFi reached its goal of profitability, and SoFi stock is down 30% this year. It's now trading below $7 and close to its lowest-ever levels. Is SoFi stock ever going back up? Or should you avoid it? Growth + profits = a great business SoFi is an all-digital financial services app that offers lending, banking, and other se ...

Positive Earnings and the SOFI Stock Outlook SoFi recently released their excellent Q1 2024 results. The company reported 37% revenue increase and a positive net income. Although the stock remains 72% below its peak, SoFi's growth potential goes beyond sales and earnings, making it a promising value stock to own in the long-term. Sectors such as its Financial Services and Technology Platforms drove SoFi's growth. It contributed 42% of its net revenue, shifting to a more balanced revenue mix. Moreover, the f ...

Over the past month, shares of this company have returned -0.1%, compared to the Zacks S&P 500 composite's +2% change. During this period, the Zacks Technology Services industry, which SoFi Technologies falls in, has gained 1.6%. The key question now is: What could be the stock's future direction? SoFi Technologies, Inc. (SOFI) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Al ...

SoFi's recent plunge in the days following its earnings announcement could be an excellent dip-buying opportunity for long-term investors.SoFi Technologies (SOFI -1.70%) recently reported solid first-quarter earnings as its lending business slowed, while two of its newer revenue streams boosted it. The company beat analysts' estimates and raised its annual earnings guidance, but that didn't stop the stock from falling more than 10% after its announcement. The dip could prove to be an opportunity for long-te ...

This fast-growing digital bank deserves a closer look from investors.SoFi Technologies (SOFI -1.70%) just reported solid 2024 first-quarter results. Revenue jumped 37% year over year, and the digital-banking provider posted its second straight positive-net income. These are encouraging signs.Nonetheless, the fintech stock remains about 72% off its peak price (as of May 6). Investors looking to score huge long-term returns might have their eyes on this business, especially as it has potential to continue gro ...

Dilok Klaisataporn I last wrote about SoFi Technologies (NASDAQ:SOFI) on February 5, 2024, several days after it jumped around 20% in response to great earnings and almost immediately dropped back to its previous price before reporting its fourth-quarter 2023 results. I had recommended a buy following that pullback. SoFi reported its most recent results, first quarter 2024 earnings, on April 29, before the bell, and the results looked great. The company beat analysts' revenue estimates by 3.6% and beat anal ...

SoFi stock is down nearly 30% so far this year.Financial services businesses aren't exactly the most exciting. However, banks and brokerage stocks have proven to be solid investment choices over a long-term horizon.In fact, billionaire investor Warren Buffett has held positions in financial services companies, including American Express, Visa, Mastercard, and Bank of America, for years. The main reason for his conviction is that despite the mundane nature of these businesses, they tend to generate steady ca ...

Is the market right, or is a Wall Street analyst right?SoFi Technologies (SOFI -0.78%) -- the online bank that went public in 2021 -- has moved past its origins as a lending cooperative and its status as a hyped-up initial public offering (IPO) stock. It's been demonstrating profitable growth at scale and has huge long-term opportunities. So why is its stock down 30% this year?Let's see what's going on, and why one Wall Street analyst still sees more than 70% upside over the next year or so.Another great qu ...

Company Overview - SoFi Technologies operates as a member-centric financial services platform, offering products that allow members to borrow, save, spend, invest, and protect their money [277]. - SoFi operates internationally in Latin America, Canada, and Hong Kong, primarily through its Technology Platform segment [288]. Financial Performance - Total net revenue for the three months ended March 31, 2024, was $645.0 million, a 37% increase compared to the same period in 2023 [305]. - Net income for the first quarter of 2024 was $88.0 million, compared to a loss of $34.4 million in the prior year period [305]. - Adjusted net revenue for the three months ended March 31, 2024, was $580.6 million, compared to $460.2 million in the same period of 2023 [314]. - Total net revenue for Q1 2024 reached $644,995,000, a 4.3% increase from $615,404,000 in Q4 2023 [316]. - Adjusted net revenue for Q1 2024 was $580,648,000, compared to $594,245,000 in Q4 2023, reflecting a decrease of 2.4% [316]. - Adjusted EBITDA for Q1 2024 was $144,385,000, up from $75,689,000 in Q1 2023, representing an increase of 90.7% [322]. - Total net revenue rose to $645.0 million, an increase of $172.8 million, or 37%, from $472.2 million in the prior year [360]. Member Growth - Total members reached over 8.1 million as of March 31, 2024, reflecting a 44% year-over-year increase [305]. - The number of members increased to 8,131,720 in Q1 2024, a 44% growth from 5,655,711 in Q1 2023 [329]. - The company anticipates that member growth will correlate with future revenue, although not all members fully utilize the products [333]. Product Offerings - Total Financial Services products grew by 42% year-over-year to 10.1 million at quarter-end [308]. - Total products offered reached 11,830,128 in Q1 2024, marking a 38% increase from 8,554,363 in Q1 2023 [329]. - Total financial services products rose by 42% year-over-year to 10,124,973, with SoFi Money accounts increasing by 61% to 3,880,021 [338]. - Total lending products increased by 20% year-over-year, reaching 1,705,155, with personal loans growing by 27% to 1,152,688 [337]. Lending Segment Performance - The company reported significant growth in its Lending segment, with net interest income being a key profitability component, driven by a digital borrowing experience [290]. - Net interest income for the Lending segment increased by $65.5 million, or 33%, driven by higher loan balances [306]. - The average net interest margin for the Lending segment was 5.91%, an increase of 43 basis points compared to the prior year [306]. - The Lending segment's adjusted net revenue was $325,323,000 in Q1 2024, slightly up from $325,086,000 in Q1 2023 [317]. - Total origination volume for the Lending segment increased by 22% to $4,366,710,000 in Q1 2024, driven by personal loans, student loans, and home loans [374]. Technology Platform Segment - Contribution profit for the Technology Platform segment was $30.7 million, a 107% increase over the respective 2023 period [307]. - Total accounts in the Technology Platform segment grew to 151,049,375, a 20% increase from 126,326,916 in Q1 2023 [329]. - Noninterest income in the Technology Platform segment rose by $16.0 million, or 21%, to $93.9 million for the three months ended March 31, 2024, driven by growth in technology services fees and increased processing activity [403]. Credit Quality and Risk Management - Annualized net charge-off rates for personal loans were 3.5%, lower than the assumed default rate of 4.8%, indicating healthy credit metrics [349]. - Credit risk is mitigated through stringent underwriting standards and strong fraud detection tools, with a focus on maintaining a quality loan portfolio [473]. - The allowance for credit losses increased to $51.3 million, with a ratio of 3.96% to total loans outstanding, down from 10.75% in the prior year [363]. Strategic Initiatives - The company has made strategic acquisitions, including Galileo and Technisys, to enhance its technology platform and expand its market reach [285]. - SoFi aims to create a "Financial Services Productivity Loop," enhancing member experiences to drive profitability and product adoption [283]. - The underwriting process utilizes proprietary risk models to determine risk-based interest rates, enhancing data-driven decision-making [297]. Capital and Liquidity - Total liquidity as of March 31, 2024, amounted to $13,932,257, with $1,338,490 utilized and $12,593,767 remaining available [418]. - As of March 31, 2024, SoFi Technologies had a CET1 risk-based capital of $3,991.97 million, representing a ratio of 17.1%, exceeding the required minimum of 7.0% [436]. - The company maintains a CALM policy for effective capital and liquidity management, overseen by a cross-functional leadership team [417]. Market Conditions - The Federal Reserve's interest rate hikes in 2023 have impacted refinancing demand, with potential rate cuts expected in 2024 [346]. - The Biden Administration's student loan relief measures may influence refinancing volume, with expectations of increased activity following the end of the payment moratorium [353].