SoFi Technologies, Inc. (NASDAQ): SOFI is a financial technology company that provides people with full access to financial services, including lending, investing, and personal finance management. It was established in 2011 to help its members achieve financial independence. The company operates through three main segments: Technology Platform, Financial Services, and Lending. Subsidiaries include Galileo and Technisys, technology solutions suppliers to financial institutions. At $15.35 billion, SoFi’s market cap is $15.35 billion, and its stock is at $14.15.
Company Financials
In 2022, SoFi saw revenue increase to $2.07 billion, up 36.11% from 2021. From $360.83 million in 2022, net income improved to $341.17 million. The company grew revenues consistently but their profitability was a concern. Total assets of Rs. 34.38 billion are supported with total liabilities at Rs 28.26 billion. As you can see, SoFi’s trailing twelve months earnings per share (EPS) is $0.12 with a price-to-earnings (PE) ratio of 119.43, which is high on expectations.
Stock Performance Overview
Over the past year, Sofi’s stock has been quite volatile from $6.01 up to $17.19. The stock’s beta of 1.79 shows it’s riskier than average in the market. Analyst ratings are neutral as one leading to buy and another leading to sell however, the consensus is a hold with a 12-month price target of $10.86, implying a potential downside of 23.25%.
Short-Term Analysis (2024-2030)
2024 analysis
As far as 2024 is concerned, revenue growth momentum should continue with SoFi’s Lending and Technology Platform segments. But growing macroeconomic challenges like rising rates could stop this profitability. The company will seek to cut it through its operational woes and analysts predict the stock to stabilise around $12-$14 by 2024.
2025 Projection
Higher demand for student and personal loans will help SoFi’s lending business in 2025. Assuming better operational efficiency, analysts project that stock price will grow modestly to around $15 or $16.
2026 Projection
By the year 2026, SoFi stands to broaden its revenue streams. Good prospects for partnerships mean that it could attract more partnerships, opening the way for more revenue through its Technology Platform, which includes Galileo and Technisys. I see no significant macroeconomic risks, so I’d look at $18 to $20 for the stock.
2027 Projection
With its initiatives in financial services, digital banking in particular, could have a major impact on SoFi’s growth to 2027. However, the bull case on the stock is priced in with analysts expecting the stock to trade in the range of $20- $22 on the back of strong earnings growth and better profitability.
2028 Projection
By 2028, the company’s investment in technology and innovation could generate a major return. According to analysts’ estimates the price could range between $23-$25, but this would hinge on local market conditions and SoFi’s ability to control its burgeoning operations.
2029 Projection
A huge increase in valuation could occur if SoFi was successful at expanding its market share in the United States and internationally. Revenue growth can drive the stock price up to $26 – 28 dollars, provided the company may enter into new financial service segments.
2030 Projection
By 2030, SoFi could find itself at the front of the Fintech line. If revenue grows sustainably, margins improve, the market thirsts for its services and remains at the current levels, analysts predict a price range of $28-$30.
Long Term Analysis (2030 – 2050).
Beyond 2030, SoFi’s long run growth will probably hinge on its capacity to innovate and integrate to altering marketplace dynamics. SoFi is well positioned for growth because digital financial services are becoming increasingly accepted around the world. The established banks and fintech businesses may compete with us. Its long term potential will depend on how well SoFi can manage costs and expand. Investors should watch how SoFi plays out there.
Balance Sheet Analysis
as of last September, SoFi’s total assets are $34.38 billion, cash and equivalents are $2.35 billion. The totals still include $28.26 billion liabilities and $6.12 billion total equity. Debt remains a concern, with $3.33 billion of total debt for the company. Nevertheless, SoFi’s strong revenue growth and the increasing efficiency in operating should be able to wrestle with its liabilities in the near future.
Market Cap History and Analysis of the Last 10 Years
SoFi Technologies’ market cap history shows that it has come from being a midcap fintech company to a major stakeholder in the financial industry; demonstrating its own growth and how the market has behaved.
- 2015–2020: Before almost quickly becoming an everybody-and-their-dog type of financial services company to pursue, SoFi started as a lending focused company. Its market cap was over $1 billion by 2020 which means steady growth.
- 2021: Within a year, it’s SPAC merger and public listing catapulted its market cap to $12.76 billion, up over 1,100%.
- 2022: SoFi reeled in as its valuation shrank to $4.28 billion, down 66.47%, as the market and interest rates continued to climb.
- 2023–2024: The market cap of $15.35 billion as of January 2025 leads to recovery for strategic expansions and a recovery of 70% to its 52-week price.
| Year | Market Cap ($B) | Change (%) |
|---|---|---|
| 2020 | 1.00 | +18.70 |
| 2021 | 12.76 | +1,173.93 |
| 2022 | 4.28 | -66.47 |
| 2023 | 9.54 | +123.00 |
| 2024 | 16.71 | +75.18 |
| 2025* | 15.35 | -8.12 |
| *As of January 10, 2025 |
Comparison with Other Stocks
SoFi Technologies competes in a competitive landscape of large cap and mid cap financial services companies such as JPMorgan Chase, Bank of America and innovative fintech.
Table: Peer Comparison
| Company Name | Market Cap ($B) | Revenue ($B) | P/E Ratio |
| SoFi Technologies | 15.35 | 2.52 | 119.43 |
| JPMorgan Chase | 684.49 | 162.15 | 13.77 |
| Bank of America | 354.56 | 94.63 | 15.60 |
| American Express | 213.34 | 59.24 | 18.45 |
Stock Recommendation by Analysts
Despite losses, analysts say to hold SoFi stock by January 2025. However, optimism about future growth is tinged with the fear that its pricing appears stretched for its growth potential.
Table: Analyst Ratings
| Analyst Firm | Price Target ($) | Recommendation |
| Firm A | 10.50 | Sell |
| Firm B | 15.00 | Hold |
| Firm C | 18.50 | Buy |
| Average | 14.66 | Hold |
Indicator-Based Stock Analysis
SoFi’s performance indicators highlight its growth potential and the associated risks:
- Growth Metrics: Its lending and technology platform segment drove revenue growth of 32 per cent year over year.
- Profit Margins: The overall margin of each SBU is gross margin of 82.64%, and net income margin of 8.50% represents reasonable operation.
- Volatility: If it’s a beta of 1.79, that’s above average risk, which would match them to higher risk growth stocks.
- Debt Profile: Its debt level is 0.54, which is manageable, its stage of growth.
- Short Interest: But the 12.51% short interest rate also signifies high speculative as well as high trading interest.
Should I Buy This Stock?
Pros:
- Robust Growth Potential: What makes SoFi poised for significant growth is its many revenue streams and innovative offerings.
- Market Leadership in Fintech: With a technology and financial services blend, the company stands out.
- Strong Institutional Ownership: Market confidence, however, is high, with more than 30 people owning at least 50 percent of the company, focusing mainly on such investors, with 44 percent of shares held by institutional investors.
Cons:
- Valuation Risks: It also trades at a P/E of 119.43, which makes it concern.
- High Volatility: This is all the more reason that there may be some price volatility.
- Negative Free Cash Flow: The ongoing sign of financial difficulties is free cash flow of -$1.31 billion.
Price Predictions (2024–2030)
It derives price forecasts from historical trends, from revenue growth estimates and market conditions. These projections are not investment research and should not replace detailed projections.
Table: Stock Price Forecast
| Year | Low ($) | High ($) | Average ($) |
| 2024 | 12.00 | 18.50 | 15.25 |
| 2025 | 14.50 | 20.00 | 17.25 |
| 2026 | 16.00 | 23.00 | 19.50 |
| 2027 | 18.00 | 26.00 | 22.00 |
| 2028 | 21.00 | 30.00 | 25.50 |
| 2029 | 24.00 | 34.00 | 29.00 |
| 2030 | 28.00 | 38.00 | 33.00 |
Price Forecasts and Analysis for SoFi Technologies, Inc. (SOFI)– (2025-2030)
2025 Price Forecast Table
| Month | Min Price ($) | Max Price ($) | % Change from Now |
|---|---|---|---|
| January | 13.80 | 14.50 | -2.47% to +2.47% |
| February | 13.90 | 14.80 | -1.77% to +4.59% |
| March | 14.00 | 15.20 | -1.06% to +7.42% |
| April | 14.10 | 15.50 | -0.35% to +9.54% |
| May | 14.20 | 15.70 | +0.35% to +10.96% |
| June | 14.30 | 16.00 | +1.06% to +13.07% |
| July | 14.50 | 16.20 | +2.47% to +14.49% |
| August | 14.70 | 16.50 | +3.89% to +16.61% |
| September | 14.90 | 16.80 | +5.30% to +18.73% |
| October | 15.10 | 17.00 | +6.72% to +20.14% |
| November | 15.30 | 17.30 | +8.13% to +22.26% |
| December | 15.50 | 17.50 | +9.54% to +23.68% |
2026 Price Forecast Table
| Month | Min Price ($) | Max Price ($) | % Change from Now |
| January | 15.70 | 18.00 | +10.96% to +27.16% |
| February | 15.90 | 18.30 | +12.37% to +29.29% |
| March | 16.20 | 18.70 | +14.49% to +32.12% |
| April | 16.40 | 19.00 | +15.91% to +34.24% |
| May | 16.60 | 19.30 | +17.32% to +36.36% |
| June | 16.80 | 19.50 | +18.73% to +37.78% |
| July | 17.00 | 19.80 | +20.14% to +39.90% |
| August | 17.20 | 20.00 | +21.55% to +41.32% |
| September | 17.40 | 20.30 | +22.96% to +43.44% |
| October | 17.60 | 20.50 | +24.38% to +44.86% |
| November | 17.80 | 20.80 | +25.79% to +46.98% |
| December | 18.00 | 21.00 | +27.20% to +48.41% |
2027 Price Forecast Table
| Month | Min Price ($) | Max Price ($) | % Change from Now |
| January | 18.20 | 21.50 | +28.61% to +51.91% |
| February | 18.40 | 21.80 | +30.02% to +53.94% |
| March | 18.60 | 22.10 | +31.43% to +55.97% |
| April | 18.80 | 22.50 | +32.84% to +58.80% |
| May | 19.00 | 22.80 | +34.24% to +60.83% |
| June | 19.20 | 23.10 | +35.65% to +62.86% |
| July | 19.40 | 23.40 | +37.06% to +64.89% |
| August | 19.60 | 23.70 | +38.47% to +66.92% |
| September | 19.80 | 24.00 | +39.88% to +68.94% |
| October | 20.00 | 24.30 | +41.28% to +70.97% |
| November | 20.20 | 24.60 | +42.69% to +73.00% |
| December | 20.40 | 25.00 | +44.10% to +75.83% |
2028 Price Forecast Table
| Month | Minimum Prediction Price ($) | Maximum Prediction Price ($) | % Change from Now |
|---|---|---|---|
| January | 21.00 | 23.00 | +48.54% |
| February | 21.50 | 23.50 | +50.53% |
| March | 21.75 | 23.75 | +51.70% |
| April | 22.00 | 24.00 | +52.84% |
| May | 22.25 | 24.25 | +54.01% |
| June | 22.50 | 24.50 | +55.18% |
| July | 22.75 | 24.75 | +56.34% |
| August | 23.00 | 25.00 | +57.51% |
| September | 23.25 | 25.25 | +58.67% |
| October | 23.50 | 25.50 | +59.84% |
| November | 23.75 | 25.75 | +61.00% |
| December | 24.00 | 26.00 | +62.17% |
2029 Price Forecast Table
| Month | Minimum Prediction Price ($) | Maximum Prediction Price ($) | % Change from Now |
| January | 24.50 | 27.00 | +65.36% |
| February | 25.00 | 27.50 | +68.36% |
| March | 25.50 | 28.00 | +71.37% |
| April | 26.00 | 28.50 | +74.37% |
| May | 26.50 | 29.00 | +77.38% |
| June | 27.00 | 29.50 | +80.38% |
| July | 27.50 | 30.00 | +83.39% |
| August | 28.00 | 30.50 | +86.39% |
| September | 28.50 | 31.00 | +89.40% |
| October | 29.00 | 31.50 | +92.40% |
| November | 29.50 | 32.00 | +95.41% |
| December | 30.00 | 32.50 | +98.41% |
2030 Price Forecast Table
| Month | Minimum Prediction Price ($) | Maximum Prediction Price ($) | % Change from Now |
| January | 31.00 | 33.50 | +107.56% |
| February | 31.50 | 34.00 | +110.57% |
| March | 32.00 | 34.50 | +113.58% |
| April | 32.50 | 35.00 | +116.58% |
| May | 33.00 | 35.50 | +119.59% |
| June | 33.50 | 36.00 | +122.59% |
| July | 34.00 | 36.50 | +125.60% |
| August | 34.50 | 37.00 | +128.61% |
| September | 35.00 | 37.50 | +131.61% |
| October | 35.50 | 38.00 | +134.62% |
| November | 36.00 | 38.50 | +137.62% |
| December | 36.50 | 39.00 | +140.63% |
Opinion
SoFi Technologies is very volatile at this moment, which means potential investors should base their investment accordingly and evaluate their risk tolerance. Its high valuation suggests strong growth expectations that may or may not come to pass in a deteriorating market environment.
How to Buy This Stock
- Open a Brokerage Account: Select for a platform which also has NASDAQ listed stocks. Sign in with the platform.
- Search for SoFi Technologies (SOFI): Enter the platform’s search bar and search “SOFI.”
- Analyze the Stock: See the latest financial performance, analyst rating and forecast.
- Decide the Investment Amount: Whatever your portfolio strategy, allocate funds.
- Place a Buy Order: You have to choose between a market order or a limit order to buy at a particular price.
- Monitor the Investment: Keep on reviewing any investments, and not just when the financial results are outburst or the broader market trends are suddenly moving.
Final Words
Revenue as well as user base growth is swift for SoFi Technologies, Inc., however, profitability and high debt levels are issues. In the short term the stock will be influenced by the ability of the company to achieve operational efficiency and maintain revenue growth. Long term success will depend on innovation and market extension. Investment decisions should take into account both the risks and opportunities before making the investment decisions.
Frequently Asked Questions
Where is SoFi Technologies listed?
SoFi Technologies is listed on the NASDAQ stock exchange under the ticker symbol SOFI.
What is the average price target for SoFi stock?
The average analyst price target for SoFi stock is $10.86, which represents a potential downside of 23.25% from the current price.
Who are SoFi’s competitors?
SoFi’s competitors include traditional banks like JPMorgan Chase and Bank of America, as well as fintech firms like PayPal and Robinhood.
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