From Yahoo Finance: 2025-05-05 06:30:00

PayPal and SoFi Technologies beat first-quarter earnings expectations, with PayPal focusing on profitability and SoFi expanding its offerings. Both companies, considered fintech leaders, are poised for growth despite stock price volatility, with PayPal boasting a lower valuation compared to SoFi. Investors may find opportunities in these disruptive fintech stocks.

PayPal, with over 436 million active customers worldwide, has seen growth in total payment volume and transaction margin. The company’s focus on branded checkout and merchant-oriented services has led to a 23% increase in adjusted earnings per share. PayPal’s growth outlook is promising, with expected margin and EPS growth through 2024.

SoFi Technologies, a smaller company valued at $14 billion, offers faster growth in the fintech sector. With a comprehensive approach to personal finance, SoFi’s revenue surged by 33% in the first quarter, driven by a diversified product range. The company’s move towards fee-based financial services is boosting profitability, with double the adjusted EPS projected for 2025.

Investors bullish on the future of fintech may find SoFi Technologies an attractive buy, given its rapid growth and earnings momentum. While both PayPal and SoFi are expected to perform well, SoFi’s potential for stock outperformance in a resilient economic environment makes it a compelling investment choice. Investors may benefit from adding SoFi to their portfolios for long-term growth.

Read more: Better Growth Stock: PayPal vs. SoFi Technologies