SoFi Stock Is Exploding Higher, But Don’t Cash Out Yet

Core Viewpoint - SoFi's stock has increased over 270% in the past year due to strong financial performance, growth acceleration, a shift to a lower-risk, fee-based business model, and consistent credit performance, indicating that the stock's upward trend may continue [1] Group 1: Financial Performance - SoFi recorded nearly $1 billion in student loan originations in Q2, marking a 35% increase from the previous year, supported by a new refinancing solution [3] - Total home loan originations reached nearly $800 million in Q2, representing over 90% year-over-year growth, driven by the success of the home equity loan product [4] Group 2: Market Environment - The recent interest rate cut and anticipated further reductions create a favorable operating environment for SoFi, potentially boosting its lending division [2] - SoFi is well-positioned to capture renewed demand in its lending products as interest rates trend downward [2] Group 3: Business Strategy - SoFi is transitioning into a more diversified financial services company, focusing on fee-based services to reduce credit risk exposure and create a stable revenue base [5] - The emphasis on fee-based revenue enhances the overall investment case for SoFi, providing a reliable income stream [5]