SoFi Technologies, Inc.

Investors in SoFi Technologies Inc (Symbol: SOFI) saw new options become available today, for the October 3rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the SOFI options chain for the new October 3rd contracts and identified one put and one call contract of particular interest.
The put contract at the $21.50 strike price has a current bid of 68 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $21.50, but will also collect the premium, putting the cost basis of the shares at $20.82 (before broker commissions). To an investor already interested in purchasing shares of SOFI, that could represent an attractive alternative to paying $23.04/share today.
Because the $21.50 strike represents an approximate 7% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 63%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 3.16% return on the cash commitment, or 26.85% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for SoFi Technologies Inc, and highlighting in green where the $21.50 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $24.50 strike price has a current bid of 83 cents. If an investor was to purchase shares of SOFI stock at the current price level of $23.04/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $24.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 9.94% if the stock gets called away at the October 3rd expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if SOFI shares really soar, which is why looking at the trailing twelve month trading history for SoFi Technologies Inc, as well as studying the business fundamentals becomes important. Below is a chart showing SOFI's trailing twelve month trading history, with the $24.50 strike highlighted in red:
Considering the fact that the $24.50 strike represents an approximate 6% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 55%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 3.60% boost of extra return to the investor, or 30.58% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 84%, while the implied volatility in the call contract example is 80%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $23.04) to be 61%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Also see:
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Interesting SOFI Put And Call Options For October 3rd

Key Points
Notable SPAC sponsor Chamath Palihapitiya just announced his newest blank-check company.
The goal will be to find an acquisition target in energy production, artificial intelligence, decentralized finance, or defense.
It's important to examine Palihapitiya's record and know the risks before investing.
During the 2020-2021 period, hundreds of companies entered the public markets via special purpose acquisition companies, or SPACs. And no SPAC sponsor was more prominent than Chamath Palihapitiya.
Well, more than three years since launching his most recent blank-check company, Palihapitiya has filed for a new one. He intends to raise $250 million to form the American Exceptionalism Acquisition Corp. A, and while there is currently no definitive timeline for its initial piblic offering (IPO), it will trade under ticker symbol AEXA.
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In the SPAC's Securities and Exchange Commission (SEC) filing, Palihapitiya correctly points out that there are over 700 private companies with a $1 billion valuation or higher, and that there are 2,000 fewer public companies in the United States compared with the 1990s. And he's banking on the fact that there's a lot of pent-up demand for companies that don't want to use the traditional IPO process.
The American Exceptionalism Acquisition Corp. will focus on finding an acquisition target in one of four areas:
Energy production
Artificial intelligence
Decentralized finance
Defense
What's different this time around?
Palihapitiya is a SPAC veteran, having directly sponsored several deals in the 2020-2021 SPAC boom. I'll discuss his track record in the next section, but out of the hundreds of SPAC deals that took place in those years, the overwhelming majority lost money for investors who bought and held shares.
There's an old saying that the worst thing an investor can hear is "this time it's different." But with that in mind, there are a couple of key differences between the structure of this new SPAC and Palihapitiya's previous blank-check companies:
There are no warrants. Most 2020-2021 SPACs were made up of "units" that consisted of shares and warrants.
The sponsor's founder shares (essentially a large block of shares the SPAC sponsor gets for taking the company public) won't vest unless the stock rises by 50% after the deal closing. If this doesn't happen, Palihapitiya's founder shares will be worthless.
The goal is to better align the interests of the sponsor with those of investors this time around.
Palihapitiya's SPAC record
During the initial SPAC boom, Palihapitiya launched a total of six blank check companies under the "IPO" series, with ticker symbols IPOA, IPOB, etc. He once said that he had reserved ticker symbols all the way to IPOZ, but the SPAC boom ran out of steam before he got there.
Here's how the investor's six main SPACs performed:
Ticker Symbol
Company Taken Public
Current Stock Price
Investor Total Returns
IPOA
Virgin Galactic
$2.95
(98.5%)
IPOB
Opendoor Technologies
$3.58
(64.2%)
IPOC
Clover Health
$2.52
(75%)
IPOD
N/A
N/A
0%
IPOF
N/A
N/A
0%
Data source: YCharts. Prices as of 8/19/2025. Total returns are based on the initial $10 offering price, adjusted for reverse splits where applicable.
So, only one of the six made money for investors who bought and held (although Opendoor is starting to get interesting again). And if you had invested $10,000 in each of these SPACs before a deal was announced ($60,000 total), you'd have $46,750 today. Of course, this includes the two dissolved SPACs (IPOD and IPOF), which never ended up finding a target and simply returned their capital to shareholders.
Palihapitiya also sponsored a series of four biotechnology-focused SPACs in 2021. Two of them ended up returning their capital to investors, and the other two found targets -- both of which are worth substantially less than the initial $10 offering price.
Should you invest in this new SPAC?
As mentioned, there are some notable differences this time around that essentially prevent Palihapitiya and other insiders from grabbing a quick payday and cashing out. However, there are a few things to keep in mind, in addition to Palihapitiya's record of SPAC success.
For one thing, you don't know what you're investing in. You're contributing $10 per share in hopes that Palihapitiya will find a good target at a good valuation. And it's also worth noting that whatever the target company ends up being, it's likely to be a relatively early-stage growth company, like all four in the chart above were at the time of their SPAC deals. For example, the most successful of the group (SoFi) was still a year away from obtaining a bank charter at that point. Companies with stable cash flows and established profitability could use the SPAC route to go public, but it's rare.
In a nutshell, buying shares of a SPAC before any merger deal is announced is a highly speculative form of investing. Keep this in mind if you decide to invest, manage your position size, and don't invest money you can't afford to lose.
Should you invest $1,000 in SoFi Technologies right now?
Before you buy stock in SoFi Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoFi Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $671,466!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,115,633!*
Now, it’s worth noting Stock Advisor’s total average return is 1,077% — a market-crushing outperformance compared to 185% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of August 18, 2025
Matt Frankel has positions in SoFi Technologies. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Chamath Palihapitiya Is Launching a Brand-New SPAC. Is This 2021 All Over Again, or Is This Time Different?

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Hasbro, Inc. (Symbol: HAS), where a total of 10,639 contracts have traded so far, representing approximately 1.1 million underlying shares. That amounts to about 42% of HAS's average daily trading volume over the past month of 2.5 million shares. Especially high volume was seen for the $62.50 strike call option expiring September 19, 2025, with 3,202 contracts trading so far today, representing approximately 320,200 underlying shares of HAS. Below is a chart showing HAS's trailing twelve month trading history, with the $62.50 strike highlighted in orange:
SoFi Technologies Inc (Symbol: SOFI) saw options trading volume of 307,201 contracts, representing approximately 30.7 million underlying shares or approximately 42% of SOFI's average daily trading volume over the past month, of 73.1 million shares. Particularly high volume was seen for the $25 strike call option expiring August 22, 2025, with 19,914 contracts trading so far today, representing approximately 2.0 million underlying shares of SOFI. Below is a chart showing SOFI's trailing twelve month trading history, with the $25 strike highlighted in orange:
And Oklo Inc (Symbol: OKLO) options are showing a volume of 79,048 contracts thus far today. That number of contracts represents approximately 7.9 million underlying shares, working out to a sizeable 41.6% of OKLO's average daily trading volume over the past month, of 19.0 million shares. Particularly high volume was seen for the $70 strike call option expiring August 22, 2025, with 9,800 contracts trading so far today, representing approximately 980,000 underlying shares of OKLO. Below is a chart showing OKLO's trailing twelve month trading history, with the $70 strike highlighted in orange:
For the various different available expirations for HAS options, SOFI options, or OKLO options, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Tuesday Option Activity: HAS, SOFI, OKLO

Below is Validea's guru fundamental report for SOFI TECHNOLOGIES INC (SOFI). Of the 22 guru strategies we follow, SOFI rates highest using our Quantitative Momentum Investor model based on the published strategy of Wesley Gray. This momentum model looks for stocks with strong and consistent intermediate-term relative performance.
SOFI TECHNOLOGIES INC (SOFI) is a large-cap growth stock in the Consumer Financial Services industry. The rating using this strategy is 94% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of SOFI TECHNOLOGIES INC
More Information on Wesley Gray
About Wesley Gray: Wesley Gray is the founder of Alpha Architect and the author (along with co-author Jack Vogel) of "Quantitative Momentum A Practitioner's Guide to Building a Momentum-Based Stock Selection System". He is also the author (along with co-author Tobias Carlisle) of "Quantitative Value: A Practitioner's Guide to Automating Intelligent Investment and Eliminating Behavioral Errors". He is an industry recognized expert in the application of quantitative investing strategies. Wes is also a former Marine and has his Phd from the Univerisity of Chicago, where he studied under Nobel Prize winner Eugene Fama.
Additional Research Links
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Guru Fundamental Report for SOFI

Key Points
SoFi has grown tremendously for years, but investors have finally started taking notice.
The banking disruptor is doing a great job of finding new and innovative ways to grow.
SoFi is a richly valued bank stock, but it could still have a long way to go.
SoFi (NASDAQ: SOFI) has been one of the best-performing stocks in the market over the past year, with shares up 267%. After going public via a special purpose acquisition company (SPAC) in 2021, SoFi fell out of favor during the 2022 bear market and languished at a ridiculously low valuation relative to its growth rate for the next several years.
Although its stock performance has been far from linear, SoFi has continued to execute beautifully on its vision of being a true banking disruptor. Growth has been simply phenomenal, and there are signs that the best could be yet to come. However, with the stock already up so much over the past year, could there still be sufficient upside potential for investors who buy now?
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Amazing growth and execution
To call SoFi's growth impressive doesn't do the company justice. Since the end of 2021, SoFi's membership base has more than tripled, and it continues to grow at a breathtaking pace. In the second quarter, SoFi added 846,000 members (the most ever in a single quarter), a year-over-year growth rate of 34%. Adjusted net revenue grew by 44% year over year, and after posting its first full year of profitability in 2024, SoFi just surprised investors by reporting its most profitable quarter yet.
Not only is SoFi adding banking relationships and growing its core lending and investment platforms, but it is also doing a great job of building out new sources of fee income. In fact, SoFi's noninterest income has quadrupled over the past year alone.
The loan platform business is the most impressive example. In addition to originating personal loans with its own capital, SoFi has started aggressively building a platform that securitizes loans for sale, originates loans on behalf of third parties, and generates referrals for other financial services companies. As of the second quarter, the loan platform business is producing more than $500 million in high-margin revenue for SoFi.
A growing ecosystem with more to come
SoFi continues to find innovative ways to engage with customers and to bring more of them into its ecosystem, and it isn't slowing down. SoFi's investment platform is an excellent example, continually adding things like private equity investments and initial public offering (IPO) access, and the company recently announced that cryptocurrency investing will return to its platform by the end of the year.
This could just be a starting point. There are a lot of banking products and services that SoFi doesn't offer yet, like auto loans, business accounts, and certificates of deposit (CDs). SoFi's credit card business is a tremendous opportunity as well, given the generally affluent and creditworthy nature of its customer base.
It's also worth noting that SoFi's student and home loan businesses represent massive opportunities. SoFi started out as a private student lender and still engages in that business, but the federal student loan uncertainty since the pandemic era has kept loan volumes low. Home loans are a rapidly growing part of SoFi, with 92% year-over-year growth in the second quarter despite persistently high mortgage rates. As rates start to (hopefully) fall, this could become a much larger component of SoFi's business.
A richly valued bank stock -- to say the least
At the current share price, SoFi trades for about 4.1 times book value, a hefty premium to pay for a bank. For context, Bank of America currently commands a valuation of about 1.3 times book, while JPMorgan Chase, which is generally considered an "expensive" bank stock, has a price-to-book valuation of 2.4.
Then again, those two banks aren't growing revenue at 44% year over year and certainly are not growing their customer bases by 34%.
In short, SoFi does look like a lot of future growth is priced into the stock, but there's also a lot of room to grow. Over 90% of Americans remain unfamiliar with SoFi. It is roughly one-tenth the size of the 10th-largest U.S. bank by assets (SoFi's management has a stated goal of becoming a top 10 financial institution). And SoFi has started to gain tremendous traction in capital-light, low-risk revenue sources such as the loan platform business.
SoFi has been the best-performing stock in my portfolio over the past year, and it's not even close. But there's no sign that the bank's growth momentum is slowing down, and I have no plans to sell a single share.
Obviously, for SoFi to produce life-changing wealth for you, there's a lot that needs to go right. But I have high conviction that in 10 years from now, SoFi will be a much larger financial institution than it is today and that patient investors will be handsomely rewarded.
Should you invest $1,000 in SoFi Technologies right now?
Before you buy stock in SoFi Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoFi Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,106,071!*
Now, it’s worth noting Stock Advisor’s total average return is 1,070% — a market-crushing outperformance compared to 184% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of August 13, 2025
Bank of America is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Matt Frankel has positions in Bank of America and SoFi Technologies. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Could Buying SoFi Stock Today Set You Up for Life?

Key Points
Upstart’s growth is accelerating again as interest rates decline.
SoFi will benefit from lower rates and resumed student loan payments.
The pricier stock is still the better long-term pick.
Upstart (NASDAQ: UPST) and SoFi Technologies (NASDAQ: SOFI) are both growing fintech companies. Upstart's online lending marketplace uses AI to crunch non-traditional data points to approve a wider range of loans than traditional credit-scoring services. SoFi is challenging traditional banks as a one-stop digital shop for myriad financial services.
Upstart went public via a traditional IPO at $20 on Dec. 16, 2020, and it now trades at $63. SoFi went public by merging with a special purpose acquisition company (SPAC) on June 1, 2021. Its stock opened at $21.97, but it now trades at roughly $23. Let's see why investors embraced Upstart but shunned SoFi -- and if that trend will continue.
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Upstart's growth is warming up again
Upstart's platform approves loans for banks, credit unions, and auto dealerships. Instead of reviewing traditional data like an applicant's FICO score, credit history, or annual income, it uses its AI algorithms to analyze non-traditional data points -- which can include previous jobs, standardized test scores, and GPA -- to approve a broader range of loans for younger and lower-income applicants with limited credit histories. It fully automates most of those approvals.
Upstart's growth can be measured through its originated loans, conversion rate (the ratio of total inquiries leading to approved loans), and contribution margin (the ratio of its fees it retains as revenue). Here's how it fared over the past five years.
Metric
2020
2021
2022
2023
2024
Originated loans growth
40%
338%
(5%)
(59%)
28%
Conversion rate
15%
24%
14%
10%
16.5%
Contribution margin
46%
50%
49%
63%
60%
Revenue growth
42%
264%
(1%)
(39%)
24%
In 2022 and 2023, Upstart's growth decelerated as soaring rates chilled the market's demand for new loans. Many lenders also cautiously reined in their own offerings. But as Upstart's top-line growth slowed down, its contribution margin improved as it automated more loans and locked in a higher mix of "super prime" borrowers to boost its take rate for each loan.
In 2024, its growth accelerated again as interest rates declined. From 2024 to 2027, analysts expect its revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow at a CAGR of 36% and 245%, respectively. Those are robust growth rates for a stock that trades at just 22 times next year's adjusted EBITDA.
SoFi's growth is still cooling off
SoFi provides a wide range of loans, insurance policies, estate planning services, credit cards, banking services, and stock trading tools. It obtained a U.S. bank charter in 2022, and it operates as a digital-only direct bank that doesn't run any brick-and-mortar branches.
That streamlined approach enabled SoFi to expand at a much faster rate than traditional banks, as seen in its growth in members, total financial products in use, and total revenue over the past four years. Its adjusted EBITDA margin also expanded from 3% in 2021 to 26% in 2024.
Metric
2021
2022
2023
2024
Members
2.5 million
5.2 million
7.5 million
10.1 million
Products in use
1.9 million
7.9 million
11.1 million
14.7 million
Revenue growth
74%
60%
35%
26%
However, the temporary suspension of student loan payments from 2020 to 2023, rising interest rates, and other macro headwinds throttled SoFi's growth. It also faces tougher competition from "neobanks" like Chime and Robinhood Markets, dedicated lending platforms like Upstart, and expanding fintech giants like PayPal.
On the bright side, two of those headwinds are dissipating. The freeze on SoFi's student loan payments has ended, and interest rates will likely keep declining. From 2024 to 2027, analysts expect SoFi's revenue and adjusted EBITDA to grow at a CAGR of 25% and 37%, respectively.
That bright outlook implies that while SoFi's hypergrowth days might be over, it should continue to grow at an impressive rate as it gains even more members, expands its ecosystem with fresh features, and profits from the expansion of its fintech subsidiary Galileo, which it acquired in 2020 and now serves nearly 160 million accounts on its own. Like Upstart, SoFi's stock also looks cheap relative to its growth potential at 19 times next year's adjusted EBITDA.
The winner: Upstart
Upstart and SoFi are both promising fintech stocks. But if I had to choose one over the other, I'd buy Upstart because it's growing faster, experiencing accelerating growth (instead of just stabilizing growth), and faces fewer direct competitors. SoFi still has to prove it can maintain its edge against its growing list of competitors.
Should you invest $1,000 in Upstart right now?
Before you buy stock in Upstart, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Upstart wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,106,071!*
Now, it’s worth noting Stock Advisor’s total average return is 1,070% — a market-crushing outperformance compared to 184% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of August 13, 2025
Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends PayPal and Upstart. The Motley Fool recommends Fair Isaac and recommends the following options: long January 2027 $42.50 calls on PayPal and short September 2025 $77.50 calls on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Better Fintech Stock: Upstart vs. SoFi Technologies

Key Points
Getting people to switch banks isn't easy, but SoFi Technologies has been adding millions of new customers annually.
With its own technology platform, SoFi can avoid software vendors that chew up its competitors' profits.
SoFi's lending portfolio has an acceptable level of delinquency now, but we don't know how it will perform in a recession.
Shares of all-digital bank SoFi Technologies (NASDAQ: SOFI) have delivered some big gains lately. From April 4 through the morning of Aug. 11, the stock shot 139% higher.
A rapidly growing user base is the main reason SoFi stock keeps producing big gains, but it isn't the only one. There are several good reasons to be enamored with SoFi stock right now.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
Finding excuses to be excited about SoFi's future is easy, but there are also a couple of good reasons to be cautious about buying the stock. Let's look at three reasons to be enthusiastic about the up-and-coming bank before looking at a couple of reasons to remain cautious.
1. Why buy: Outstanding user growth
SoFi's bears like to remind investors that consumer banking changes very little over time. While the same basic banking principles apply regardless of the underlying technology, SoFi is attracting new customers at a pace that suggests it has built a unique experience that resonates with American consumers.
SoFi began refinancing student loans in 2012, and didn't launch SoFi Money, the operation that includes basic checking and savings accounts, until 2019. SoFi Technologies acquired a banking license in 2022 and ended that year with 5.3 million members using 7.9 million products. By the end of this June, its business grew to 11.7 million members using 17.1 million products.
To put a little perspective on how difficult it is to get people to switch banks, consider Wells Fargo. In 2017, it admitted to creating millions of bogus credit card, checking, and other types of accounts for customers without their consent.
In the years since, Wells Fargo hasn't been as transparent about customer account numbers as SoFi Technologies is now. The publicly traded bank still has to report top-line revenue figures, though. Looking at this metric, the fake account scandal didn't even register.
2. Why buy: Room to continue growing
Many SoFi customers will start with one product, such as a personal loan or checking account. Once they become members, though, getting them to engage with another product like a mortgage, stock brokerage account, or credit card has been relatively easy. In the second quarter alone, SoFi added 1.3 million new products, which worked out to 1.5 products per new customer added during the period.
Investors can likely look forward to more new customers coming on board in the years ahead. Brand awareness recently reached an all-time high, but 91.5% of Americans still haven't heard about SoFi Technologies.
3. Why buy: A consumer bank with fintech chops
In 2020, SoFi acquired Galileo, the technology platform that provides payment processing and other technology support for SoFi's customer-facing applications.
Now that SoFi has its own banking charter, it probably isn't fair to call it a financial technology stock. That said, it's wholly owned technology platform sports more customers than most businesses in the financial technology space. H&R Block, Toast, Eli Lilly, and more than 100 other partners rely on Galileo to manage 158 million accounts for their customers.
The Galileo business isn't just a way for SoFi to lower its own technology expenses. Second-quarter revenue from the segment rose to $110 million, and plenty of that revenue hits the bottom line. Over the past year, more than 30% of technology segment revenue has been recorded as profit.
The first reason I'm not buying more SoFi stock right now
The last time I purchased SoFi Technologies shares, they were trading at around 2 times the bank's tangible book value. I'd gladly buy more at this valuation, but it's not an option. The stock has been trading at an extremely high 5.5 times its tangible book value.
Well-established consumer banks rarely trade above 2 times their tangible book value. If SoFi's rapid expansion loses steam over the next few years, its valuation could quickly resemble its more-established peers. Although it looks like rapid growth can continue for several more years, this isn't a risk I'm willing to take.
The second reason I'm not adding to my SoFi position now
SoFi is building up its mortgage business, but it mostly relies on unsecured personal loans and student loans for revenue. Credit performance has been pretty good so far. The bank's net charge-off percentage on personal loans fell to 4.5% in the second quarter, or just 2.8% if you account for the delinquent loans it's been able to sell.
Like Upstart, SoFi Technologies uses its own system to evaluate individual credit risk. Less reliance on third parties like Fair Isaac, the company that sells access to FICO scores, is great for profitability, but this bank hasn't had a real chance to prove itself yet. Americans haven't experienced a long recession in over a decade.
It isn't SoFi's fault that the U.S. economy has been generally strong for an unusually long time. That said, you probably shouldn't buy any up-and-coming lender at a valuation that is more than double that of its established peers unless you're twice as confident about its future credit performance. Over time, I think SoFi can prove itself. For now, it presents more risk than most investors should feel comfortable accepting.
Should you invest $1,000 in SoFi Technologies right now?
Before you buy stock in SoFi Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoFi Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,119,863!*
Now, it’s worth noting Stock Advisor’s total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of August 11, 2025
Wells Fargo is an advertising partner of Motley Fool Money. Cory Renauer has positions in SoFi Technologies. The Motley Fool has positions in and recommends Toast and Upstart. The Motley Fool recommends Fair Isaac. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Reasons to Buy SoFi Technologies Stock Now, and 2 Reasons to Wait

Key Points
FuboTV's business is already improving even before it merges with a larger streaming platform.
SoFi's financial results look incredibly strong, and it still has attractive growth opportunities.
Although they have faced some issues, FuboTV (NYSE: FUBO) and SoFi Technologies (NASDAQ: SOFI) have rebounded significantly. Both companies have seen their shares more than double over the trailing-12-month period. At this point, many investors might wonder if it's too late to invest in these stocks. The answer, in my view, is a resounding no. Even with their excellent recent runs, there is still plenty of upside for FuboTV and SoFi Technologies. Here is more on these potential long-term market beaters.
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1. FuboTV
FuboTV, a sports-focused streaming service, recently saw its shares surge after announcing preliminary second-quarter results. The company expects revenue of over $365 million, well above the midpoint of its guidance of $345 million. FuboTV is also projecting that its paid subscribers for the period will come in ahead of the midpoint of its prior guidance. That's all well and good, but FuboTV's stock is up by more than 100% this year for another reason. The company is merging with Disney's Hulu+ Live TV.
This move will address several problems for FuboTV. First, it will help diversify its offerings. The world of sports is somewhat seasonal, and fans sometimes pay for subscriptions accordingly. Second, Disney has now given up on Venu, a competitor to FuboTV in the sports streaming niche it was considering launching with two other media giants. This kind of competition would have been challenging for FuboTV to overcome, considering its subscriber growth rates were dropping and the company remained unprofitable.
Third, FuboTV now has the backing of Disney, a media juggernaut with a successful streaming platform. Disney will become FuboTV's majority owner once the deal closes. No doubt, the House of Mouse will utilize its expertise and industry knowledge to guide FuboTV and help it achieve success. There is still ample room for growth in streaming as cable continues to decline.
And although the new FuboTV will still encounter competition, it is now on much more secure footing than it was a year ago, not least because of a $145 million term loan from Disney and a $220 million payment from the former backers of the Venu venture. The fact that FuboTV's core business, excluding Hulu, is performing even better than expected -- as the company's preliminary results showed -- makes the stock even more attractive. There should be plenty of upside for investors who hold on to this stock for a while.
2. SoFi Technologies
SoFi does its business entirely online. It does not have a single retail location. Although legacy banks have adapted to this model, it has been SoFi's strategy from the beginning, and the company has gained popularity for this reason, especially among younger generations. This model also enables SoFi to reduce overhead costs. And although it faced significant volatility some years ago, the company has been on fire over the trailing-12-month period: Shares are up by more than 200%.
It's not hard to understand why when we look at SoFi's financial results. In the second quarter, SoFi's total net revenue was up 43% year over year to $854.9 million, while its net income came in at $97.2 million, a whopping 459% higher than the year-ago period. Importantly, SoFi's ecosystem continues to grow. The company ended the quarter with 11.7 million members and 17.1 million products, representing a 34% year-over-year increase in both metrics.
Note what this means: SoFi has an average of 1.5 products per member despite having a pretty long list of offerings. This grants the company significant growth potential even within its current ecosystem by cross-selling existing products to its members. Sure, it is already doing that. SoFi pointed out that during the second quarter, 35% of new products were opened by existing members. Still, there is considerable room to grow, thanks to the company's expanding user base. Furthermore, SoFi has consistently expanded its product platform and should continue to do so. That's another way it can improve its financial results.
Lastly, SoFi will benefit in the long run as banking activity continues to shift to online channels. The stock may experience volatility if the economy enters a recession. That would affect demand for some of the company's products. That said, downturns don't last forever, and thanks to its significantly improved business recently -- including turning a profit -- SoFi looks better equipped than ever to handle economic challenges. Even if there is one on the way, the company could overcome it and continue growing long after. That's why the stock remains attractive today even after its recent run.
Should you invest $1,000 in fuboTV right now?
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Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walt Disney and fuboTV. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

2 Stocks That Have More Than Doubled in the Past Year and Still Have Room to Run

Key Points
SoFi reported earnings that handily beat expectations on both the top and bottom lines.
The loan platform business is generating an impressive stream of fee income.
SoFi's asset quality is improving, with the net charge-off ratio declining by more than 40 basis points.
SoFi Technologies (NASDAQ: SOFI) recently reported its second-quarter earnings, and the stock soared to a multiyear high. Not only were the numbers generally stronger than analysts had been looking for, but the company also is growing in all the right ways and has big plans.
With that in mind, here are some of the key takeaways from SoFi's earnings report that you need to know, and what to keep an eye on.
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1. Growth momentum isn't slowing down
In the second quarter, revenue growth was 44% year over year, an acceleration over its prior rate. The company grew its membership base by 34% year over year, adding 846,000 new members, the highest single-quarter total ever.
2. Capital-light revenue streams are strong
SoFi has been a personal lender for years, but the recent focus has been on the loan platform business, which consists of several capital-light streams of fee income. In addition to securitizing loans and selling them to investors, the company has been originating a high volume of loans on behalf of third parties and referring applicants to other lending partners. Its loan platform is generating high-margin fee income at a rate of more than $500 million annually on a run rate of $9.5 billion in loan originations.
Fee-based revenue now makes up 44% of the company's total, compared with 27% a couple of years ago, and this shift is a big reason for SoFi's surprisingly strong profitability. Noninterest income roughly quadrupled year over year, and the loan platform business has been the primary driver.
3. Profits are better than expected
Not only did SoFi produce better-than-expected profitability in the second quarter, but the company also reported its highest earnings per share (EPS) ever. It produced an 11% adjusted net margin, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 80% year over year.
And management raised its full-year 2025 guidance for all major profitability metrics and now expects EPS to more than double from 2024 levels.
4. Asset quality is improving
SoFi's loan net charge-off rate ticked higher in 2023 but it has been in a clear downward trend for nearly two years. Since it peaked at 3.98% in late 2023, the net charge-off rate for personal loans has declined to 2.83%, including a 48-basis-point sequential drop in the most recent quarter.
5. More than personal loans
SoFi is well known for its personal loan business, and for good reason. But the company also originates student loans and home loans, and I'd argue that these are underappreciated growth drivers.
In the second quarter, student loan volume grew by 35%, and I wouldn't be surprised to see it accelerate in the second half of the year, since more pandemic-era federal student loan protections have expired recently. For example, borrowers whose loans are in limbo as the SAVE repayment plan makes its way through the legal system just recently saw interest start accumulating on their student loans again.
Perhaps most exciting is the fintech's home loan business, which grew volume by more than 90% year over year despite a slow real estate market and persistent high interest rates. There's a lot of pent-up demand for home purchases as well as for refinancing and home equity lines of credit, and if mortgage rates fall, this could become a big business.
What to watch
The second half of 2025 could be an exciting time for SoFi. The Federal Reserve is widely expected to resume interest rate cuts, and this could help lower the company's deposit cost. Also, management is bringing back cryptocurrency trading before the end of the year and has other big plans to integrate cryptocurrency and blockchain technology throughout its platform.
Along with its earnings report, SoFi announced a plan to raise $1.5 billion in fresh capital by selling new common stock. With plenty of growth opportunities, this could help take its business to the next level.
Should you invest $1,000 in SoFi Technologies right now?
Before you buy stock in SoFi Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoFi Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,119,863!*
Now, it’s worth noting Stock Advisor’s total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of August 4, 2025
Matt Frankel has positions in SoFi Technologies. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.