Is The Breakout in SoFi Stock Just Beginning?

Core Viewpoint - SoFi Technologies has seen its stock price nearly double in 2025, raising questions about its potential for further growth similar to other fintech firms like Robinhood and Shopify [1] SoFi's Fintech Expansion - The company has diversified its services beyond consumer lending, venturing into banking, investing, and cryptocurrency trading, resulting in a 15% increase in memberships from 10.9 million in Q1 to 12.6 million by Q3 [2] - Year-over-year, SoFi's subscriber base has grown by 35% [2] User Growth and Monetization - New customers present long-term monetization opportunities as SoFi offers multiple services, including blockchain-powered remittances for faster and cheaper cross-border transactions [3] Operational Efficiency and Strategic Partnerships - SoFi is leveraging AI-driven innovations to enhance operational efficiency and reduce costs, while strategic partnerships with the Bitcoin Lightning Network and acquisitions of Galileo and Technisys position it as a leader in fintech consolidation [4] Technical Analysis - SoFi's stock has regained bullish momentum, breaking above a 50-day simple moving average of $28, indicating continued buyer interest since forming a golden cross in mid-June [5] Growth and Valuation Monitoring - SoFi's stock trades at a premium of 77X forward earnings, reflecting strong growth expectations, with a net income of $479.1 million last year compared to a net loss of $341.2 million in 2023 [7] - The company reported positive adjusted EPS of $0.15 per share for the first time, with fiscal 2025 EPS expected at $0.36 and projected to grow by 65% to $0.60 in FY26 [8] Sales Expansion and Valuation - Annual sales are anticipated to increase by nearly 37% this year and by another 25% in FY26, reaching $4.48 billion [10] Bottom Line - SoFi's stock is thriving as it transitions from speculative growth to proving its operational profitability, currently holding a Zacks Rank 2 (Buy) due to positive EPS revision trends [13]