SoFi Shares Surge 81%: Is the Stock Still Worth Buying?

Core Viewpoint - SoFi's stock experienced a setback due to dilution concerns from a $1.5 billion equity raise, but the overall outlook remains positive with an 81% increase in shares over the past year, indicating market confidence in its evolving business model [1]. Group 1: Business Model and Revenue Sources - SoFi is shifting towards capital-light income sources, expanding technology platform fees and financial services revenue, which generate attractive margins without significant capital investment [2]. - This shift reduces SoFi's reliance on interest income and lowers credit risk exposure, enhancing earnings resilience across various market conditions [2]. Group 2: Lending Operations - SoFi's lending operations are performing well, with solid loan originations supported by a growing and loyal deposit base, which helps maintain low funding costs [3]. - The profitability of the lending segment is sustained while the company develops less cyclical revenue streams [3]. Group 3: New Product Launches - SoFi has launched its first stablecoin, SoFiUSD, marking a significant step in diversifying its non-lending businesses and reducing dependence on interest-driven revenue [4]. Group 4: Membership Growth - A key growth driver for SoFi is its expanding member base, having added a record 905,000 new members in the last quarter, bringing total membership to 12.6 million, a 35% increase year-over-year [6]. Group 5: Valuation and Growth Potential - Despite concerns about valuation due to the sharp rise in share price, the strong underlying business suggests potential for further upside, with efficient scaling and improved revenue quality [5].