SoFi Technologies stock surges 88% in 3 months, showing strong growth potential

Shares of SoFi Technologies, Inc. (SOFI) have surged 88% in the past three months, outpacing industry growth. With a 187% increase in the last year, investors wonder about further potential or a pullback. SOFI’s strong positioning in student loan refinancing and digital ecosystem, including Galileo, have led to significant revenue growth and cross-selling opportunities. In the first quarter of 2025, SOFI saw a 20% increase in net sales and a notable 217% surge in net income, with a total of 800,000 new members added. The Zacks Consensus Estimate for 2025 projects a substantial 80% year-over-year increase in earnings and a 26.2% increase in revenues. However, macroeconomic risks and competition from traditional banks like JPMorgan and Bank of America pose challenges. SOFI’s valuation appears stretched compared to industry peers, raising questions about sustainability. Despite this, SOFI’s growth trajectory and expanding ecosystem make it an attractive long-term investment, with a prudent hold strategy recommended amid market volatility.

Read more at Nasdaq: SoFi Stock Skyrockets 88% in 3 Months: Too Late to Get in?