SoFi Technologies (SOFI) Price Prediction and Forecast 2025-2030
SoFi Technologies (NASDAQ: SOFI) made its public debut on June 1, 2021, through a merger with a special purpose acquisition company (SPAC), Social Capital Hedsophia Holding Corp. V, led by Chamath Palihapitiya. Before the merger, the company was originally known as Social Finance, which started as a student loan financing firm before expanding into loans, and mortgage products among other finance products. After the SPAC acquisition, SoFi was equipped with substantial capital to enhance its technology stack to better scale its 2020 acquisition of Galileo. The Galileo platform was developed to deploy a wide range of financial services quickly, giving SoFi the tools to take numerous financial products to a mass market. SoFi IPO’d at $10 per share and quickly jumped 150%, but the stock has been lackluster since, now trading at $15.57 per share, down 39.60%. However, investors only care about what happens from this point on, particularly over the next 1, 3, and 5 years and beyond. Let’s crunch the numbers and give you our best guess on SoFi’s future share price. No one has a crystal ball and even the Wall Street “experts” are often wrong more than they are right in predicting future stock prices. But we give you our revenue and earnings projections as our peer-to-peer valuation. Key Points in this Article: SoFi Technologies is a premier online financial solutions platform targeting a more affluent demographic. 24/7 Wall Street projects a 12.78% upside on the stock through the end of the decade. If you’re looking for a megatrend with massive potential, make sure to grab a complimentary copy of our “The Next NVIDIA” report. The report includes a complete industry map of AI investments that includes many small caps. Recent SoFi Stock Updates and News 12/9/2024 SoFi’s stocks declined today following Bank of America’s recent downgrade. Bank of America expressed concerns about the stock’s valuation, which has surged 210% in the past three months, partially due to the U.S. presidential results. 12/6/2024 SoFi’s shares increased 0.4% today, trading as high as $15.81. 12/5/2024 SoFi recently introduced new options contracts for January 2025. These options offer potential opportunities for traders looking to capitalize on price movements of SoFi stock. 12/3/2024 SoFi experienced a slight decline of 0.4% during mid-day trading today, dipping to a low of $15.83. 11/26/2024 SoFi saw a slight increase of 0.1% in its share price today, reaching a high of $15.84. Trading volume was much lower than average, however, with only 9.3 million shares exchanging hands (an 80% decrease from the usual daily volume). 11/25/2024 SoFi’s stocks continue to rise, closing 0.64% higher today after a 14% gain over the past six trading sessions. 11/22/2024 SoFi has introduced new options contracts for February 2025. These new contracts offer a longer time frame for potential options traders. 11/21/2024 Wall Street has recently shown bullish interest in SoFi. Out of 33 unusual trades, 54% were bullish calls, with a total value of $4.35 million. In contrast, only 39% were bearish puts, valued at $184,500. 11/20/2024 SoFi’s stock price increased following Mizuho’s upgraded price target. Today shares were trading up 1.2% and as high as $14.89, reaching a new 52-week high for the company. 11/19/2024 The Mizuho Financial Group has raised its price target for SoFi from $14 to $16, leading to a rise of 3% in today’s shares. SoFi Financials’ Recent Stock Record Here’s a table summarizing performance in share price, revenue, and profits (net income) from IPO. Share Price Revenue Net Income 2021 $12.50 $977.3 ($483.9) 2022 $15.81 $1,519.2 ($320.4) 2023 $4.62 $2,067.8 ($300.7) 2024 LTM $8.22 $2,343.5 ($113.3) *Revenue and Net Income in millions In the last 4 years, SoFi has more than doubled revenue but that top-line growth also carried a jump in total operating costs, particularly the $720 million in sales and marketing expense in 2023. However, the increases in operating costs are money well spent with in-house technology improvements and member-generating marketing spending. Chart Source: YCharts SoFi is close to hitting an inflection point in profitability and has done a stellar job of expanding revenue and improving earnings per share (EPS). As SoFi’s revenue grows, it becomes more profitable, meaning its costs per customer decrease. This scalability is important because it indicates that as the company grows, it will become even more profitable. Given that the industry is growing and SoFi is outperforming its peers, there’s strong optimism that SoFi’s earnings per share will continue to rise. Key Drivers of SoFi’s Stock Performance Expansion Financial Services: SoFi’s ambition to become a one-stop shop for financial services will likely drive future growth. The company plans to continue expanding its product lineup, including new lending products, investment options, and insurance services, which will cater to a broader range of financial needs. Bank Charter and Deposit Base Expansion: Obtaining a national banking charter allows SoFi to use its growing deposit base to fund lending operations more efficiently. This access to lower-cost funds is expected to drive net interest income growth, enhancing profitability as SoFi scales its banking operations. Cross-Selling and Customer Retention: SoFi’s strategy of cross-selling its wide array of financial products aims to increase the average number of products per customer. This integrated approach is expected to improve customer retention and lifetime value, thereby boosting overall revenue and profitability. SoFi Technologies (SOFI) Stock 1-Year Price Prediction The Wall Street consensus 1-year price target for SoFi Technologies is $9.00, which is a -42.20% downside over today’s stock price. Of the 15 analysts covering the stock, the stock is a consensus “Hold” with a 2.88 rating. (1 being a “Strong Buy” and 5 a “Strong Sell”). SoFi’s Share Price Estimates 2025-2030 Year Est. Revenue ($B) Est. Net Income ($B) Est. EPS Normalized Price to Sales Multiple Est. Market Cap ($B) 2024 $2.47 $0.164 $0.08 3.5 $8.64 2025 $2.84 $0.32 $0.21 3.5 $9.94 2026 $3.45 $0.584 $0.43 3.5 $12.08 2027 $3.79 $0.707 $0.62 3.5 $13.27 2028 $4.33 $0.902 $0.83 3.5 $15.16 2029 $4.84 $1.096 $1.02 3.5 $16.94 2030 $5.34 $1.279 $1.10 3.5 $18.69 24/7 Wall Street compared other fintech/ lenders when deciding on our price-to-sales valuation of 3.5 times for the entire time frame of our analysis. Included in the analysis were Block (NYSE:SQ), PayPal (NASDAQ: PYPL), Upstart Holdings (NASDAQ: UPST), LendingClub (NYSE: LC), and Affirm (NASDAQ: AFRM) which gives us a blending valuation of around 3.3 times sales. How SoFi Technologies’ Next 5 Years Could Play Out We expect to see revenue growth of 15.3% and EPS of $0.21 for 2025. We expect the stock to still trade at a similar multiple next year, putting our estimate for the stock price for SoFi at $9.33 in 2025, which is -40.08% higher than the stock is trading today. Going into 2026, we estimate the price to be $11.35, with revenue growth coming in at 14.2% year-over-year. With an EPS of $0.43, this would represent a -27.10% loss under today’s share price of $15.57. Heading into 2027, we expect the stock price increase not to be as pronounced, with earnings estimates of $0.62 per share. The stock price target for the year is $12.46. That is a 9.81% increase from the previous year, but still down -19.97% from today’s stock price. When predicting more than 3 years out, we expect SoFi to remain growing its top line at 12% and be more efficient, with an EPS of $0.83 suggesting a stock price estimate at $14.23 or a loss of -8.61% over the current stock price. We expect SoFi to continue its growth and generate $1.02 per share of earnings. With a price to earnings multiple of 15, the stock price in 2029 is estimated at $15.9, or a gain of 2.12% over today’s price. SoFi Technologies Stock Price Target for 2030 We estimate SoFi’s stock price to be $17.56 per share with a 10% year-over-year revenue growth. Our estimated stock price will be 12.78% higher than the current stock price of $15.57. Year Price Target % Change From Current Price 2024 $8.11 Upside of -47.91% 2025 $9.33 Upside of -40.08% 2026 $11.35 Upside of -27.10% 2027 $12.46 Upside of -19.97% 2028 $14.23 Upside of -8.61% 2029 $15.90 Upside of 2.12% 2030 $17.56 Upside of 12.78% Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored) Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today. Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month. Click here now to get started. 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Dec 11, 2024 | 247wallst.com
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