---
title: "Why SOFI Could Be the Fintech Stock to Buy Now"
description: "Fintech company SoFi Technologies saw a 10% decline despite strong financial health and exceeding market estimates in its recent earnings report. The company's membership and revenue have shown signif"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/211262397.md"
published_at: "2024-08-10T10:29:00.000Z"
---

# Why SOFI Could Be the Fintech Stock to Buy Now

> Fintech company SoFi Technologies saw a 10% decline despite strong financial health and exceeding market estimates in its recent earnings report. The company's membership and revenue have shown significant growth, and it continues to innovate with new features and offerings. With potential interest rate cuts and a shifting macro landscape, SoFi appears to be on the right track for long-term success. Despite its stock remaining below $10 per share, it presents a buying opportunity for investors.

Surpassing market estimates with its most recent earnings report, fintech company **SoFi Technologies** (NASDAQ:**SOFI**) saw a steep 10% decline last week. Despite trading 74% below its peak, SoFi continues to showcase strong financial health, though the market appears to continue to focus on the company’s headwinds.

The reality is there is a shifting macro landscape and plenty of reasons for investors to be bullish on the fintech sector long-term. Growth in financial services (both online and offline), as well as potential interest rate cuts, could boost online lending activity and encourage more debtors to refinance their loans with the most trusted partners.

The American banking sector is mostly dominated by big finance names like **JPMorgan Chase** (NYSE:**JPM**), **Wells Fargo** (NYSE:**WFC**) and **Bank of America** (NYSE:**BAC**). All three service a combined 218 million customers. New smaller banks have harder times competing in the market but SoFi is among the leaders in the online lending space. Last week, writer David Moadel discussed SoFi’s successes, and I have to agree with many of his points.

Most notably, SoFi has seen strong membership growth, adding 643,000 new members this past quarter which drove an 80% revenue surge in its financial services segment. The stock remains volatile amid fluctuating interest rates, but here are some top reasons why SoFi appears to be on the right track.

## Q2 Earnings Surpassed Estimates

During SoFi’s Q2 2024, the company impressively exceeded estimates, recording revenue of $597 million and net income of $17 million. Additionally, as previously mentioned, SoFi also added 643,000 new members and over 100,000 new products. All segments posted profits, something that has become increasingly important for many investors in this space.

In Q2, SoFi’s lending revenue grew 3% year-over-year, reversing Q1’s decline. Personal, student and home loan originations surged, while the company’s financial services segment saw an 80% revenue increase and 39% growth in products. SoFi’s non-lending services, now a larger revenue driver, rose 46% year-over-year.

SoFi projects 17.6% revenue growth by 2026 and aims for Q3 revenue of $625 million to $645 million and full-year revenue of $2.42 million to $2.46 billion. Despite impressive results, SoFi’s stock remains below $10 per share, offering a buying opportunity before potential future increases.

## SoFi Continues to Innovate

SoFi also launched new features like integration with Zelle through transfers and a 10% cashback for members of the SoFi Plus premium membership program. The company’s assets under management surged 58% year-over-year with the use of new investment tools and alternative assets. The ease of use and one-click transfers on its investing platform enhances its appeal.

SoFi’s management team envisions its tech platform as the “AWS of financial services,” expanding its B2B operations. While stock gains may be limited until interest rates fall, SoFi has significant long-term potential. Now that it’s seeing dramatic growth, SoFi is becoming one of the best U.S. financial institutions, making the stock a buy for investors willing to take a risk with short-term volatility.

Moreover, the company markets its comprehensive digital finance platform and it now offers a wide range of products. Such include credit cards, investments and loans. With an average deposit interest rate of 4.24%, SoFi aims to outshine traditional banks.

This strategy has led to a 40% year-over-year increase in membership, reaching 8.77 million, and $21 billion in deposits. Since acquiring its banking license in early 2022, SoFi’s growth has been notable, boosting its lending business significantly.

## Buy SOFI Now

In July, SoFi stock and bank stocks surged on expectations of falling interest rates. Banks benefit from higher rates but face challenges with rate hikes. SoFi, being digital and rapidly growing, is more sensitive to interest rate changes than traditional banks. Its valuation relies on strong growth and stability, making it more reactive to economic news.

Although the company saw a successful Q2 report, the stock nearly fell 25% year-to-date. The company’s diverse revenue model and pivot towards financial services, now 45% of revenue, suggest future stability. Although the stock hasn’t risen, it presents a potential buying opportunity, with prospects for significant gains in the next two years.

*On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines*.

*On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.*

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

Financial, Fintech

Growth Stocks

### Related Stocks

- [SOFI.US - SoFi Tech](https://longbridge.com/en/quote/SOFI.US.md)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| SoFi Tech｜10-K：2025 财年营收 47.7 亿美元 |  | [Link](https://longbridge.com/en/news/276168315.md) |
| 期权热点｜上周五 SOFI 大涨 7%，部分看涨期权飙升 200% | 美东时间 02 月 06 日，SOFI 期权总成交 444768 张，看涨期权占比 66%，看跌期权占比 33%。 | [Link](https://longbridge.com/en/news/275263418.md) |
| 早盘趋势｜SoFi 财报窗口临近，主力已悄悄吸筹？ | SoFi Technologies（SOFI.US）这一轮下探后，近两天开始缩量企稳，盘中资金浮现多次异动。“财报预期 + 板块轮动” 双驱下，这波低位吸筹迹象引发交易社区浓厚关注，尤其是 7.2-7.5 美元筹码区间主力扫货动作频现。有观 | [Link](https://longbridge.com/en/news/272744595.md) |
| SoFi Tech｜8-K：2025 财年 Q4 营收 10.25 亿美元 |  | [Link](https://longbridge.com/en/news/274306260.md) |
| 今日股票：SoFi 将何去何从？ | SoFi Technologies (SOFI) 正在经历下行趋势，但接近一个可能提供支撑的关键价格水平。目前，交易较为平静，因为股价在下跌后进行整合。在 2025 年 1 月，SoFi 处于上行趋势，直到达到 $18.25 时，卖压增加。 | [Link](https://longbridge.com/en/news/276368544.md) |

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.