The Motley Fool·2025-12-19 10:15Group 1: Market Performance - The U.S. stock market has seen significant gains in 2025, with the S&P 500 index up more than 14% year to date, outperforming its historical annualized return of about 8% [1] - Robinhood Markets has experienced a remarkable increase of 222% this year, while SoFi Technologies has risen by 69%, significantly outperforming the broader market by 202 percentage points and 55 percentage points, respectively [1][2] Group 2: Robinhood Markets - Robinhood is popular among younger investors, boasting 26.8 million funded accounts, which positions it well as wealth transfers from older consumers to younger generations [4] - The company has launched various new products and services, leading to total platform assets exceeding $333 billion, more than doubling from the previous year, with revenue also rising by 100% [5] - Despite its growth, Robinhood's stock trades at a high price-to-sales (PS) ratio of 26, indicating it has become increasingly expensive [7] - More than half of Robinhood's revenue comes from transaction-based activities, making it vulnerable to market fluctuations [8] Group 3: SoFi Technologies - SoFi Technologies has expanded its user base from 1.4 million in 2020 to 12.6 million, with a year-over-year customer growth of 35% in the third quarter [9] - The company offers a comprehensive digital platform for banking, borrowing, investing, and learning, with potential for further growth through cross-selling opportunities [10] - Management anticipates full-year earnings per share of approximately $0.37, more than double the previous year's earnings, and expects a 51% increase in tangible book value, amounting to $2.5 billion [12] - Although SoFi's stock has performed well, it may face a period of adjustment after its rapid rise, but it remains a strong long-term investment if it can sustain its growth [13]