Prediction: SoFi Stock Will Double by 2026

Core Viewpoint - SoFi Technologies is regaining investor confidence as it positions itself as a viable alternative to traditional banks, with expectations of significant growth and profitability in the coming years [1][2]. Group 1: Growth Potential - SoFi has demonstrated consistent revenue growth, achieving at least 20% growth for 17 consecutive quarters, with a notable acceleration to 30% in Q3 2024 as economic conditions stabilize [3]. - The company is attracting new members at a high rate, with a 35% increase in new members and a 31% increase in products per member in Q3 [4]. - Research indicates that 20% of Americans are seeking new savings accounts and credit cards, suggesting continued demand for SoFi's offerings [5]. Group 2: Profitability and Financial Performance - SoFi is transitioning to a full financial services app, focusing on capital-light, fee-based products, resulting in a 65% year-over-year increase in fee-based revenue in Q3 [7]. - All three segments of SoFi's business—lending, financial services, and tech platform—were profitable in Q3, with non-lending segments growing to 49% of total business [8]. - Earnings per share (EPS) of $0.05 exceeded expectations, and management has raised its EPS forecast for the upcoming periods [9]. Group 3: Valuation and Market Sentiment - SoFi's stock currently trades at a forward P/E ratio of 52, which is considered reasonable given its performance, with potential for the stock to double if earnings also double by the end of 2026 [10]. - Analysts expect EPS to more than double from $0.12 this year to $0.28 next year, supporting the potential for stock price appreciation [11].