SoFi Soars After Breaking Into Private Investing

SoFi shares surged 10% after announcing access to private market funds from Cashmere, Fundrise, and Liberty Street Advisors. The move allows exposure to high-growth private businesses like SpaceX and OpenAI. SoFi stock is up 130% from its April low, marking a strategic leap into private markets for investor appeal and differentiation.

Teaming up with investment firms like Cashmere, Fundrise, and Liberty Street Advisors, SoFi is democratizing access to private markets, historically reserved for institutional investors and high-net-worth individuals. This move enhances customer value, elevates the brand as a tech-savvy financial hub, and could boost user growth, stickiness, and revenue diversification.

SoFi’s expansion into private markets is expected to drive long-term growth, especially with plans to resume crypto offerings. However, the stock is expensive with a forward price-earnings ratio of 68x, raising valuation concerns. Analysts recommend caution at current levels, with a consensus rating of “Hold” and a target price indicating potential downside of 30%.

While SoFi shares may seem attractive as a long-term investment, the stock is trading at expensive levels compared to traditional banks like JPMorgan. With no dividend payouts, valuation concerns persist, leading analysts to recommend caution at current levels. The consensus rating on SoFi Technologies remains at “Hold” with potential downside from current prices.

Read more at Yahoo Finance: SoFi Is Breaking Into Private Investing. How Should You Play SOFI Stock Here?