SoFi: Seriously Undervalued

The Asian Investor
28.79K Followers
(8min)

Summary

  • SoFi Technologies beat Q1’25 consensus estimates, driven by strong financial services and customer acquisition momentum.
  • The Fintech added 789k new members in Q1, reaching 10.9M total customers, and grew its platform products by 1.17M to 15.9M.
  • SoFi raised its FY 2025 guidance, now expecting 25.5% Y/Y revenue growth.
  • The Fintech is valued at a forward P/E ratio of 28.4X, indicating significant upside potential as its earnings are expected to surge.
  • Risks include potential slowdown in customer acquisition and financial services income growth, but current momentum supports a strong buy rating for SoFi.

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Fintech powerhouse SoFi Technologies (NASDAQ:SOFI) reported first-quarter results that beat consensus expectations for its top and bottom line due to persistent momentum in its financial services category as well as continual customer acquisition momentum. In addition to strong results

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of SOFI, PYPL, XYZ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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