Investing

SoFi Technologies (SOFI) Price Prediction and Forecast 2025-2030

Joel South

Published: September 17, 2024 9:37 am

Last Updated: September 17, 2024 4:20 pm

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 $8.06 per share, down 68.74%.

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 117.87% 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

9/17/2024

Trading volume for SoFi stock was higher than usual yesterday, with 44.88 million shares changing hands compared to its average of 40.06 million shares. The stock price reached a high of $7.74 and a low of $7.52 during the day.

9/16/2024

Principal Financial Group Inc. has decreased its holdings in shares of SoFi Technologies by 2.4% during the second quarter. This decrease follows other large investors who have reduced their stakes or purchased additional shares recently.

9/12/2024

In a recent research report released yesterday, analysts at Seaport Res Ptn increased their earnings per share estimates for SoFi Technologies. The firm now expects SoFi to earn $0.10 per share in FY2024, up from their previous forecast of $0.08. They also anticipate the company to earn $0.27 per share in FY2025.

9/11/2024

SoFi stock opened at $7.02 and closed at $7.31, with a total of 42,828,118 shares traded during the day. The highest price it reached during the trading day was $7.35, while the lowest was $6.95.

9/10/2024

Investors are carefully watching SoFi stocks as the company moves into a new period of predicted growth. With the end of the student loan forbearance period, SoFi’s student loan refinancing platform is expected to see increased activity, which could lead to significant revenue growth for the company. In addition, SoFi has been actively diversifying its offerings beyond student loans, moving into areas such as mortgages, credit cards, investment accounts, and personal loans. The company also acquired Galileo Financial Technologies, which provides advanced tools for real-time account verification and fraud detection.

9/6/2024

SoFi’s stock closed at $7.01 after opening at $7.29 this morning. The stock has seen a 15% increase over the past month, largely driven by expectations of interest rate cuts by the Federal Reserve.

9/5/2024

Despite recent challenges, SoFi is doing well, as demonstrated in the company’s most recent earnings report. SoFi’s personal loan business grew by 12% last year, reaching a total of $4.2 billion, and its revenue from financial services also grew by 80% during the same period.

9/3/2024

SoFi shares fell slightly, dropping 0.5% and reaching a low of $7.81. This morning, the stock began trading at $7.90.

SoFi Financials’ Recent Stock Record  

Here’s a table summarizing performance in share price, revenue, and profits (net income) from IPO.

*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

1. 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.
2. 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.
3. 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 $8.73, which is an 8.31% upside 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

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 15.76% 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 40.82% gain over today’s share price of $8.06.

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 up 54.59% 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 gain of 76.55% 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 97.27% 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 117.87% higher than the current stock price of $8.06.