Here’s Why SoFi Stock Is a Buy Before July 29

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As a diehard fan of SoFi (SOFI), I can’t help but feel a thrill of anticipation as we approach July 29 – the day when this groundbreaking fintech pioneer unveils its second-quarter earnings. To call it a robust performer lately would be doing it an injustice. In reality, over the past year, SoFi’s stock has seen an incredible surge, almost tripling in value! The excitement is palpable, and I can hardly wait to see what the future holds for this trailblazing financial powerhouse.

Despite these developments, this might only mark the start. Notably, SoFi has made some intriguing declarations lately, and there are significant triggers that could lead to substantial profit growth in the upcoming years. Given this context, here’s what I will keenly observe when SoFi discloses its earnings, and why I believe the stock could still hold considerable growth potential from its current position.

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SoFi could report its best growth yet

During the first three months of 2025, SoFi saw a record-breaking number of over 800,000 new users join its platform – the most it has ever gained in one quarter. This happened during a time marked by significant economic turmoil, suggesting that additional membership growth may have occurred in the second quarter as well.

In the upcoming second quarter, it’s worth paying attention to some additional factors. For instance, with the Trump administration’s student loan policies becoming clearer, SoFi may witness an increase in its private student loan issuance. During the first quarter alone, SoFi issued approximately $1.2 billion in student loans, representing a 58% year-on-year growth rate.

Keep an eye on businesses specializing in personal loan origination, acting as intermediaries for third-party lenders. These platforms have gained significant momentum, generating $1.56 billion in loans during the initial quarter alone. They are a rapidly expanding revenue source, offering low-risk fees.

According to its Q1 report, SoFi anticipates earnings between $0.05 and $0.06 per share for Q2. Given the recent expansion of its profitable loan platform, it seems plausible to expect the company might even surpass these estimates.

Lots of future catalysts

Moving forward, there are many appealing aspects to SoFi’s prospective growth. For instance, this year has witnessed a significant increase in Initial Public Offering (IPO) activity, and SoFi stands out by offering everyday investors the chance to participate in IPOs. Additionally, the company has successfully added intriguing private equity investment opportunities, which could serve as a substantial source of revenue through fees.

It’s worth keeping an eye on the latest news: SoFi will be reintroducing cryptocurrency trading on their platform following recent updates in regulations. Previously, SoFi halted cryptocurrency services due to regulatory uncertainties after acquiring a bank charter. However, new guidance now enables them to resume these operations once more.

Other avenues present themselves, and SoFi’s rapidly expanding home loan sector could prove noteworthy to observe. Remarkably, the loan volume surged by 54% year-on-year in the initial quarter, even amidst a generally sluggish mortgage market. The housing market harbors significant untapped demand, with current homeowners holding an unprecedented $35 trillion in home equity at present, which opens up numerous prospects for growth.

A future “top 10” bank?

Based on conventional methods for assessing bank stocks like the price-to-book ratio, SoFi might appear expensive. However, it’s important to note that unlike many banks, SoFi is experiencing a significant growth in revenue at an annualized rate of 33%, and simultaneously introducing high-potential products. This could suggest that while it may seem costly by traditional measures, its innovative approach and rapid growth might justify a higher valuation.

As a passionate supporter of SoFi, I can’t help but feel excited about their ambitious goal: they aim to break into the top 10 financial institutions! This means their total assets would need to increase significantly, approximately tenfold from where they are now. With an unstoppable growth trajectory, a burgeoning array of products and services, and remarkable strides in brand recognition, it’s not unrealistic to think they could achieve this feat someday. To put it simply, a top-10 bank with the profit margins of an online bank would undoubtedly be a lucrative investment for the long haul. However, it’s important to acknowledge that many factors must align perfectly for SoFi to reach this level, but their momentum as a banking disruptor is nothing short of remarkable!

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2025-07-24 13:43