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SoFi Technologies ( NASDAQ: SOFI ) made its public debut on June 1, 2021, through a merger with a special purpose acquisition company (SPAC), Social Capital Hedsophia Holding Corp. V, led by Chamath Palihapitiya. Before the merger, the company was originally known as Social Finance, which started as a student loan financing firm before expanding into loans, and mortgage products among other finance products.
After the SPAC acquisition, SoFi was equipped with substantial capital to enhance its technology stack to better scale its 2020 acquisition of Galileo. The Galileo platform was developed to deploy a wide range of financial services quickly, giving SoFi the tools to take numerous financial products to a mass market.
SoFi IPO’d at $10 per share and quickly jumped 150%, but the stock has been lackluster since, now trading at $8.63 per share, down 66.52%.
However, investors only care about what happens from this point on, particularly over the next 1, 3, and 5 years and beyond. Let’s crunch the numbers and give you our best guess on SoFi's future share price. No one has a crystal ball and even the Wall Street “experts” are often wrong more than they are right in predicting future stock prices. But we give you our revenue and earnings projections as our peer-to-peer valuation.
Key Points in this Article: - SoFi Technologies is a premier online financial solutions platform targeting a more affluent demographic.
- 24/7 Wall Street projects a 103.48% upside on the stock through the end of the decade.
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Recent SoFi Stock Updates and News
10/10/2024
The recent surge in options trades is a noteworthy development. The split sentiment between bullish and bearish traders suggests a high level of uncertainty and potential volatility surrounding the company.
10/9/2024
SoFi has introduced two new credit cards: the SoFi Everyday Cash Rewards Credit Card and the SoFi Essential Credit Card. These cards are designed to cater to the diverse financial needs of SoFi members, offering a range of benefits and rewards.
10/8/2024
SoFi's stock price rose slightly today, reaching a high of $8.42. Investors are anxiously awaiting the company's third-quarter financial report at the end of the month.
10/7/2024
SoFi's stock prices increased slightly today. The stock previously closed at $8.39, but today it is trading as high as $8.52.
10/4/2024
SoFi is expected to release its earnings report on October 29th. The company's upcoming EPS is projected at $0.04, signifying a 233.33% increase compared to the same quarter of the previous year.
10/2/2024
SoFi's shares are on the rise today following the announcement of DSP2.0, the company's new Directed Share Platform (DSP). Developed in partnership with PrimaryBid Technologies, DSP2.0 aims to streamline the equity program management and IPO processes for U.S. companies seeking to raise capital.
10/1/2024
SoFi has been rated as the "Bull of the Day" by Zacks Equity Research. Since the company's last earnings report, its stock price has been increasing.
9/27/2024
SoFi's stock price rose 4% today, trading as high as $8.09. However, trading volume was significantly lower than average.
9/26/2024
SoFi saw a slight decline of 0.3% today, trading as low as $7.68. Analysts have maintained a generally neutral stance, with an average rating of "hold".
9/25/2024
SoFi stock price fell slightly today after insiders sold some of their shares. The stock traded at a low of $7.77 and closed at $7.79. Trading volume was significantly lower than average, with only 4,922,620 shares traded.
SoFi Financials' Recent Stock Record Here's a table summarizing performance in share price, revenue, and profits (net income) from IPO.
| Share Price | Revenue | Net Income |
| 2021 | $12.50 | $977.3 | ($483.9) |
| 2022 | $15.81 | $1,519.2 | ($320.4) |
| 2023 | $4.62 | $2,067.8 | ($300.7) |
| 2024 LTM | $8.22 | $2,343.5 | ($113.3) |
*Revenue and Net Income in millions
In the last 4 years, SoFi has more than doubled revenue but that top-line growth also carried a jump in total operating costs, particularly the $720 million in sales and marketing expense in 2023. However, the increases in operating costs are money well spent with in-house technology improvements and member-generating marketing spending.
Chart Source: YCharts
SoFi is close to hitting an inflection point in profitability and has done a stellar job of expanding revenue and improving earnings per share (EPS).
As SoFi's revenue grows, it becomes more profitable, meaning its costs per customer decrease. This scalability is important because it indicates that as the company grows, it will become even more profitable. Given that the industry is growing and SoFi is outperforming its peers, there's strong optimism that SoFi's earnings per share will continue to rise.
Key Drivers of SoFi's Stock Performance - Expansion Financial Services: SoFi's ambition to become a one-stop shop for financial services will likely drive future growth. The company plans to continue expanding its product lineup, including new lending products, investment options, and insurance services, which will cater to a broader range of financial needs.
- Bank Charter and Deposit Base Expansion: Obtaining a national banking charter allows SoFi to use its growing deposit base to fund lending operations more efficiently. This access to lower-cost funds is expected to drive net interest income growth, enhancing profitability as SoFi scales its banking operations.
- Cross-Selling and Customer Retention: SoFi's strategy of cross-selling its wide array of financial products aims to increase the average number of products per customer. This integrated approach is expected to improve customer retention and lifetime value, thereby boosting overall revenue and profitability.
SoFi Technologies (SOFI) Stock 1-Year Price Prediction
The Wall Street consensus 1-year price target for SoFi Technologies is $9.00, which is a 4.29% upside over today’s stock price. Of the 15 analysts covering the stock, the stock is a consensus “Hold” with a 2.88 rating. (1 being a “Strong Buy” and 5 a “Strong Sell”).
SoFi’s Share Price Estimates 2025-2030
| Year | Est. Revenue ($B) | Est. Net Income ($B) | Est. EPS Normalized | Price to Sales Multiple | Est. Market Cap ($B) |
| 2024 | $2.47 | $0.164 | $0.08 | 3.5 | $8.64 |
| 2025 | $2.84 | $0.32 | $0.21 | 3.5 | $9.94 |
| 2026 | $3.45 | $0.584 | $0.43 | 3.5 | $12.08 |
| 2027 | $3.79 | $0.707 | $0.62 | 3.5 | $13.27 |
| 2028 | $4.33 | $0.902 | $0.83 | 3.5 | $15.16 |
| 2029 | $4.84 | $1.096 | $1.02 | 3.5 | $16.94 |
| 2030 | $5.34 | $1.279 | $1.10 | 3.5 | $18.69 |
24/7 Wall Street compared other fintech/ lenders when deciding on our price-to-sales valuation of 3.5 times for the entire time frame of our analysis. Included in the analysis were Block ( NYSE:SQ ), PayPal ( NASDAQ: PYPL ), Upstart Holdings ( NASDAQ: UPST ), LendingClub ( NYSE: LC ), and Affirm ( NASDAQ: AFRM ) which gives us a blending valuation of around 3.3 times sales.
How SoFi Technologies' Next 5 Years Could Play Out
We expect to see revenue growth of 15.3% and EPS of $0.21 for 2025. We expect the stock to still trade at a similar multiple next year, putting our estimate for the stock price for SoFi at $9.33 in 2025, which is 8.11% higher than the stock is trading today.
Going into 2026, we estimate the price to be $11.35, with revenue growth coming in at 14.2% year-over-year. With an EPS of $0.43, this would represent a 31.52% gain over today’s share price of $8.63.
Heading into 2027, we expect the stock price increase not to be as pronounced, with earnings estimates of $0.62 per share. The stock price target for the year is $12.46. That is a 9.81% increase from the previous year, but still up 44.38% from today’s stock price.
When predicting more than 3 years out, we expect SoFi to remain growing its top line at 12% and be more efficient, with an EPS of $0.83 suggesting a stock price estimate at $14.23 or a gain of 64.89% over the current stock price.
We expect SoFi to continue its growth and generate $1.02 per share of earnings. With a price to earnings multiple of 15, the stock price in 2029 is estimated at $15.9, or a gain of 84.24% over today’s price.
SoFi Technologies Stock Price Target for 2030
We estimate SoFi’s stock price to be $17.56 per share with a 10% year-over-year revenue growth. Our estimated stock price will be 103.48% higher than the current stock price of $8.63.
| Year | Price Target | % Change From Current Price |
| 2024 | $9.00 | Upside of 4.29% |
| 2025 | $9.33 | Upside of 8.11% |
| 2026 | $11.35 | Upside of 31.52% |
| 2027 | $12.46 | Upside of 44.38% |
| 2028 | $14.23 | Upside of 64.89% |
| 2029 | $15.90 | Upside of 84.24% |
| 2030 | $17.56 | Upside of 103.48% |
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