SoFi Technologies (NASDAQ: SOFI) recently reported stellar earnings results, beating analyst estimates and posting its first full-year GAAP profit since going public in 2021. Despite solid growth in capital-light businesses, SoFi stock declined 10% after the earnings report. The company’s fourth-quarter revenue reached $734 million, exceeding estimates, with adjusted earnings per share at $0.05. SoFi reported nearly $25 billion in deposits at the end of Q4, a significant increase from the previous year. The company’s technology segment showed strong growth, with contribution profit up 34% from the previous year.

While SoFi’s past performance was strong, its forecast for 2025 left investors cautious. The company projects full-year revenue of $3.2 billion, up 23% from 2024, and GAAP earnings per share of $0.25 to $0.27. SoFi aims to invest more this year to drive growth and returns, focusing on untapped markets. The stock is trading at a forward P/E ratio of 41 and a P/B ratio of 2.8, but its revenue and earnings growth make its valuation justifiable for long-term investors.

Read more at Nasdaq: Is SoFi Stock a Buy Now?