Where Will SoFi Technologies Be in 3 Years?

Published: Friday, May 23, 2025 at 7:15 am

SoFi Technologies: Is the Stock a Buy? A 3-Year Outlook

SoFi Technologies (SOFI) has faced a turbulent journey since going public, with its stock price fluctuating significantly. Despite the volatility, the all-digital bank has shown resilience and growth, even amidst challenging economic headwinds. This article explores SoFi's potential trajectory over the next three years, considering its current position and future prospects.

The company, which went public in 2021, initially struggled due to factors like the bursting of the stock market bubble and the impact of the COVID-19 pandemic on its core student loan business. Government-imposed student loan repayment freezes significantly affected SoFi's revenue stream. However, SoFi has demonstrated impressive growth, expanding its member base from 3.4 million in 2021 to over 10.9 million. The acquisition of a banking charter in 2022 further solidified its position, leading to its first net income last year.

Now, with headwinds dissipating, SoFi's core business is poised for a comeback. The resumption of student loan repayments is expected to trigger a wave of refinancing activity, benefiting SoFi's established user base and access to capital. Management projects over $3.2 billion in net revenue this year, a testament to the company's growth despite challenges in its student loan sector.

The article suggests that SoFi's growth, particularly in its student loan business, could drive significant shareholder returns. The company's tangible book value (TBV) per share is growing rapidly, and management anticipates a 12% increase in TBV this year. If SoFi maintains this growth rate and its current TBV ratio, the stock could reach approximately $19 in three years, representing a nearly 50% increase from its current price. While the author adopts a cautious outlook, they believe SoFi is on a positive trajectory, positioning it for solid shareholder returns in the coming years.

Keywords: SoFi Technologies, SOFI, stock, investment, digital bank, student loans, refinancing, growth, revenue, tangible book value, TBV, financial outlook, stock market, banking charter, member base, shareholder returns, future, 3-year outlook

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