Up 118% in 6 Months, Is SoFi Stock a Buy, Sell, or Hold?

Core Insights - SoFi Technologies has experienced a significant share price increase of over 118% in the past six months, driven by strong financial performance and rapid member growth [1][4] - The company is diversifying its revenue streams towards capital-light sources, reducing reliance on interest income and credit risk, while maintaining a healthy lending division [2][4] - Despite the positive momentum, SoFi's stock is currently trading above the average analyst price target of $27, indicating high expectations that may be difficult to sustain [3] Financial Performance - SoFi added 905,000 new members in the most recent quarter, resulting in a 35% year-over-year increase to a total of 12.6 million members [5] - The number of financial products used by customers rose by 36% year-over-year to 18.6 million, with approximately 40% of new products coming from existing members, indicating strong cross-buying [5] - The increase in product density is expected to enhance lifetime revenue per member and reduce customer acquisition costs [5] Revenue Diversification - The company is shifting towards technology platform fees and financial services income, which are less capital-intensive and lower credit risk [2] - SoFi's strong deposit base supports its lending division, helping to keep funding costs lower [2] Growth Outlook - The company has multiple growth catalysts and a solid funding structure, but maintaining the current growth momentum may become challenging as year-over-year comparisons become tougher [3][4]