SoFi stock price has rallied in the past few weeks, mirroring the performance of other American equities. After bottoming at $8.62 in April, it has rebounded by 62% to $14, giving it a valuation of over $14 billion. This article explores whether the SoFi share price will continue rising this year.
SoFi stock price rallied after earnings
SoFi is a fintech company offering various financial services through its mobile applications and website. Its top products are the SoFi checking and savings, SoFi invest, student loan refinancing, personal loans, private student loans, mortgages, and insurance.
This business model makes it a financial supermarket, where one can find most financial solutions on its websites and applications. The diversified model helped it to weather the student loan financing freeze during the COVID-19 pandemic.
As a result, its revenues have jumped from $565 million in 2020 to $2.64 billion last year, a 370% surge. This growth made it one of the fastest-growing companies in the financial technology industry in the US.
The most recent financial results showed that SoFi’s growth accelerated in the first quarter as demand for its service rose. It made $771 million in revenue, a 33% increase from the same period last year. This was the highest growth rate in five quarters.
The management attributed the surge to the soaring member numbers, products, and its fee-based products. It added 800,000 new members to its platform and 1.2 million new products. This growth brought its total members to over 10.9 million, and its products to 15.9 million. The management expects the members to grow by 30%.
SoFi’s lending business brought in $413 million in revenue, a 25% increase from a year earlier, helped by the net interest income. The technology platform segment made $103 million, while the financial services business made over $303 million during the quarter.
Read more: SoFi plans crypto comeback within 6 months, says CEO Anthony Noto
Is SoFi a good buy?
SoFi seems like a good stock to buy because of its growing market share in the financial services industry. It has continued to add more customers to its platform, a trend that will likely continue since it mostly targets the young.
Analysts anticipate that SoFi’s business will keep growing, albeit at a slower pace than expected. The average estimate is that SoFi’s revenue rose by 34% to $800 million in the current quarter.
SoFi will then make $838 million in the third quarter, while its full-year figure will come in at $3.26 billion, a 25% annual rate. It will then make $3.8 billion in 2026. Historically, SoFi tends to do better than expected, meaning that it may cross the $4 billion milestone in 2024. Still, traders believe it may crumble as it has a short interest of 13%.
SoFi stock price analysis
SoFi share price chart | Source: TradingView
The daily chart shows that the SoFi share price has rebounded in the past few weeks. It has moved above the 50-day and 200-day Exponential Moving Averages (EMA), a sign that bulls are in control for now.
SoFi has also formed an inverse head and shoulders pattern, a popular bullish sign. Also, the MACD indicator has continued rising and moved above the zero line.
The Relative Strength Index (RSI) has continued rising, and is now nearing the overbought level. Therefore, the stock will likely continue rising as bulls target the next key resistance point at $18.48, its highest point in January, up by 32% above the current level.
The bullish outlook of the SoFi stock price will become invalid if it drops below the support at $12. A drop below that level will raise the odds of it falling to $10.
Read more: SoFi stock: missed opportunity or smart buy for 2025?
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