SoFi Technologies sees growth in financial services and tech platform segments despite challenges in lending.

From NASDAQ: 2024-10-12 06:30:00

SoFi Technologies (NASDAQ: SOFI) is a growing all-digital bank with 8.8 million customers and a 41% increase in customer count year over year. Adjusted net revenue increased by 22% with $17 million in net income in the second quarter.

The lending segment is under pressure from high interest rates, but SoFi’s financial services and tech platform segments are growing rapidly. Financial services revenue increased by 80% year over year and accounted for 91% of new products. Tech platform revenue increased by 9%.

SoFi may shift from a growth stock to a bank stock as it matures, but it still offers potential returns. While its lending segment has faced challenges, the company’s other segments are gaining momentum. SoFi stock is down about 67% from its all-time highs, but it is up 35% in the past three months.

Investors should weigh the potential of investing in SoFi against other opportunities. The Motley Fool Stock Advisor team has identified 10 top stocks, and SoFi Technologies did not make the cut. Stock Advisor has a history of outperforming the S&P 500 since 2002. John Mackey of Whole Foods Market is on The Motley Fool’s board of directors.



Read more at NASDAQ: 1 Magnificent Growth Stock Down 67% to Buy and Hold Forever