Will SoFi Stock Keep Climbing or Is It Due for a Pullback After a 181% Gain?

Core Insights - SoFi Technologies (SOFI) stock has increased by over 181% in the past year, driven by strong operating performance and expansion of its member base and product offerings [1][2] - The company's shift towards capital-light revenue streams enhances profitability and reduces reliance on interest income, contributing to positive investor sentiment [2] - Concerns about valuation arise as SoFi trades above the analysts' average price target of $25.87, indicating that future growth is already priced in [3] Membership and Product Growth - In the latest quarter, SoFi added a record 905,000 new members, bringing total membership to 12.6 million, a 35% year-over-year increase [4] - Product growth was robust, with 1.4 million new products added, representing a 36% year-over-year increase to a total of 18.6 million [4] - Approximately 40% of new products were opened by existing users, marking the highest cross-buy rate since 2022, which has increased for four consecutive quarters [4] Financial Performance - SoFi's adjusted net revenue rose by 38% year-over-year to a record $950 million in the third quarter [5] - The Financial Services and Technology Platform segments generated $534 million, up 57% from the previous year, with these higher-margin segments exceeding half a billion dollars in quarterly revenue [5] - The shift towards fee-based and technology-driven income is expected to enhance SoFi's long-term profitability [5]