SOFI Stock Analysis: The Fintech Powerhouse Wall Street Is Wrong About

SoFi Technologies Financial Performance - SoFi Technologies reported GAAP earnings per share of 2 cents, beating forecasts of 1 cent per share [3] - Net revenue for the quarter was $580.65 million, moderately ahead of consensus [3] - Year-over-year growth: net revenue up 26%, adjusted EBITDA up 91%, tangible book value up 28% [4] - Membership growth of 44% and total products growth of 38% compared to Q1 2023 [4] - Company slightly raised full-year revenue and earnings guidance [4] Market Sentiment and Concerns - Despite strong results, SoFi Technologies stock continues to slump with bearish market sentiment [1] - 17.6% of float sold short, indicating Wall Street's downside risk perception [2] - Lending revenue declined during the quarter [5] - Updated guidance for current quarter fell short of expectations [5] - Concerns persist about credit quality and loan accounting practices [5] Analyst Perspective and Future Outlook - Mizuho's Dan Dolev maintains $12 per share price target, citing encouraging signs in delinquent loan sales and lending growth prudence [6] - Sell-side forecasts predict EPS to nearly triple next year to 23 cents, with high-end 2025 forecasts at 36 cents [7][8] - Potential for earnings to scale up to $1 per share in a few years, compared to current $7.30 share price [10] - Operating leverage likely to drive exponential earnings growth, making current 88.3x forward earnings multiple potentially justified [9] Business Growth and Opportunities - Non-lending business segments continue to grow at above-average rates [7] - Company has reached profitability point, where incremental revenue growth will have outsized impact on earnings [7] - Macro normalization by 2025 could pave way for lending growth resurgence [8] - Positive developments could drive stock price substantially higher [8]