Investing

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

Joel South

Published: November 18, 2024 10:05 am

Last Updated: November 18, 2024 12:05 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 $13.63 per share, down 47.13%.

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 28.83% 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

11/15/2024

SoFi’s stock declined slightly today, trading as low as $13.08. Trading volume was also lower than average.

11/14/2024

SoFi has announced that the company’s CFO, Chris Lapointe, will participate in a fireside chat discussion during the upcoming UBS Global Technology and AI Conference on December 3rd.

11/12/2024

SoFi is modifying its robo-advisor, which will now feature an annual fee. The annual fee, which kicks in on December 10th, is designed to cover the costs of managing and maintaining the platform, as well as providing access to a team of financial advisors.

11/11/2024

SoFi’s shares increased today 8.46%, marking the fifth consecutive trading day of gains. In the past month, SoFi’s stock has increased 57%.

11/8/2024

SoFi’s stock price increased by 4.6% today, reaching a high of $12.45. Trading volume, however, was much lower than average.

11/7/2024

SoFi saw a modern 1.5% increase in its share price today, reaching a high of $12.10. Trading volume was significantly lower than average, with only 12 million shares changing hands.

11/6/2024

SoFi’s shares rose 3% today following the U.S. presidential election.

11/5/2024

SoFi’s stock price increased 5.3% today, trading as high as $11.52.

11/1/2024

Despite beating analyst estimates for both earnings and revenue in the third quarter, SoFi’s stock price initially fell. However, recently the stock price surged, possibly due to investor confusion.

10/29/2024

SoFi reported strong third-quarter results, with a 35% year-over-year increase in members to 9.4 million. While revenue growth was slightly slower at 30%, CEO Anthony Noto expressed confidence in the company’s “durable” growth trends.

The company also saw improvements in credit quality, with declining charge-offs and delinquencies on personal loans. This positive trend is expected to contribute to increased net interest income, which grew 25% during the quarter.

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 $9.00, which is a -33.97% 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

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 -31.55% 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 -16.73% loss over today’s share price of $13.63.

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 -8.58% 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 4.40% 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 16.65% 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 28.83% higher than the current stock price of $13.63.