Is SoFi Yesterday's News?

Core Insights - SoFi Technologies has experienced a significant increase in share price, soaring 402% over the past three years, indicating strong investor confidence in the company's performance [1][2][6] Financial Performance - In Q3 2023, SoFi reported adjusted revenue of $950 million, a 38% year-over-year increase, driven by a 50% rise in fee-based revenue and a 57% increase in loan originations [2][4] - The company achieved GAAP profitability in Q4 2023, with adjusted net income of $227 million reported for 2024, and management projects $455 million in adjusted net income for 2025 [4][6] Customer Growth - SoFi added 905,000 net new customers in Q3 2023, bringing the total to 12.6 million, which is more than three times the number of customers at the end of 2021 [3][6] Operational Efficiency - SoFi's business model benefits from the absence of physical bank branches, allowing it to leverage operating expenses effectively as it scales [5][6] Market Position and Valuation - Despite the impressive financial metrics, SoFi's stock trades at a forward price-to-earnings ratio of 44, raising questions about its valuation [8][9] - The current valuation may be justified given the company's potential for significant growth in the coming years [9]