Could Buying SoFi Technologies Stock Today Set You Up for Life?

Core Insights - SoFi Technologies has experienced significant growth since becoming publicly traded, with its membership base tripling since the end of 2021 and consumer deposits exceeding $27 billion [1][3] - Despite this growth, SoFi remains a relatively small financial institution, ranking as the 63rd largest U.S. bank by assets, indicating substantial room for expansion [3][5] - In Q1 2025, SoFi reported a 33% year-over-year revenue increase, its highest earnings per share to date, and added approximately 800,000 new members, marking a record for the company [4] Growth Potential - SoFi's average member holds only 1.4 products, suggesting significant potential for cross-selling additional services [5] - The company is scaling its third-party loan origination platform, which generates low-risk, high-margin fee income without requiring its own capital [5] - Personal loans remain SoFi's core business, with student loan and home loan originations increasing by 58% and 54% respectively in the latest quarter, presenting further growth opportunities, especially if interest rates decline [5][6] Valuation and Market Position - SoFi's current valuation stands at 2.9 times tangible book value and approximately 50 times forward earnings, indicating it is not a cheap bank stock, but its growth momentum and high net interest margin could lead to substantial returns [7] - To become a top 10 financial institution, SoFi would need to grow its total assets from $37.7 billion to approximately $373 billion, a tenfold increase [8] - If successful in achieving this scale, SoFi could command a higher valuation than other large U.S. banks due to its asset-light business model and low cost structure, potentially leading to life-changing wealth for investors [9]