Investing

SoFi Technologies (SOFI) Price Prediction and Forecast 2025-2030 for February 14

Joel South

Published: February 20, 2025 4:51 pm

Shares of SoFi Technologies (NASDAQ: SOFI) fell -2.81% on Thursday, ending a rally that spanned five trading sessions and dragging down the stock’s one-month performance to a loss of -13.07%. SoFi is still enjoying a strong start to 2025, with a 10.12% year-to-date gain, which has helped bolster its one-year gain to 111.13%.

Morgan Stanley recently raised its price target for the stock from $7.50 to $13.00 and called the company “underweight,” and Needham & Company raised its outlook for SoFi from $13.00 to $20.00 while giving it a “buy” rating. The company recently reported strong Q4 earnings but tempered forward guidance. The fintech firm announced EPS of 5 cents, beating analysts’ estimates of 4 cents. But the company’s expectation of annual EPS of 25 cents to 27 cents disappointed investors, who have been selling off the stock since the announcement.

In January, another investment bank — William Blair & Company — initiated coverage of SoFi with a “Buy” rating around the same time SoFi announced that it raised $525 million from a loan program with PGIM Fixed Income. Year-to-date, shares of SOFI are up 14.72% and have risen more than 145% over the past six months.

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. 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 seen lackluster performance since. However, investors only care about what happens from this point on, particularly over the next one, three and five years. 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 9.41% 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.

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 four 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 one-year price target for SoFi Technologies is $14.64, which is a -5.91% downside from 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 3.3x sales.

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 19.21% higher than the current stock price of $14.73.