SoFi: A Modest Proposal for Future Wealth

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Three years have passed, and SoFi Technologies (SOFI 7.12%) has performed a rather agreeable little dance on the stock exchange, yielding a return of 185% as of late February. A delightful spectacle, to be sure. However, it currently trades a full 42% below its peak. A temporary setback, perhaps? Or a golden opportunity for those of us with a nose for a bargain and a tolerance for calculated risk? Let us investigate.

The Curious Case of SoFi’s Momentum

This company’s growth isn’t the plodding, predictable sort one finds in most financial institutions. No, SoFi is a bit more…spirited. Adjusted net revenue ascended by a respectable 38% in the last period, a feat that would make even the most seasoned banker raise an eyebrow. They’ve amassed nearly 13.7 million customers, a leap of 161% from the 5.2 million souls who entrusted them with their finances back in 2022. A veritable multiplication of wealth, wouldn’t you agree?

One might anticipate a slowing of this pace, naturally. But the gentlemen at SoFi are optimistic. “We foresee a compounded annual growth of at least 30% in adjusted net revenue from now until 2028,” they proclaim in their latest missive. A bold prediction, certainly, but one that tickles the imagination. The platform itself is a marvel of digital convenience, attracting customers with the ease of a seasoned magician. Loan originations are booming, and fees from loans, interchange, and brokerage services are accumulating at a satisfying rate.

They’re also dabbling in the future, venturing into the realms of cryptocurrency and blockchain with a zeal that borders on reckless abandon. CEO Anthony Noto, a man with a forward-thinking glint in his eye, believes SoFi is uniquely positioned to benefit from both the crypto and AI revolutions. A grand claim, but one can’t help but admire the audacity. It’s as if they’re building a financial ark, preparing for a flood of technological innovation.

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The Pursuit of Profit: A Most Serious Undertaking

In the year 2023, SoFi was operating at a loss, a deficit of $54 million. Doubts were whispered among the skeptics. Would this ambitious venture ever turn a profit? But then, a remarkable transformation occurred. In 2024, they emerged from the red, posting an adjusted net income of $227 million. A surge of 112% year-over-year, and projections suggest a further increase of 72% in the coming year. The gentlemen at SoFi seem to have discovered the alchemical formula for turning ambition into gold.

“We anticipate a compounded annual growth of 38% to 42% in adjusted earnings per share from now until 2028,” they declare with unwavering confidence. And what’s their secret? No costly brick-and-mortar branches, naturally. A stroke of genius, really. They’ve eliminated a significant overhead expense, allowing them to scale up with remarkable efficiency. As they grow, they’ll become even more adept at managing their costs, whether in technology, product development, or the art of persuasion.

Between now and early 2029, SoFi shares have a distinct possibility of outperforming the market, thanks to the potential for substantial earnings growth. A tempting proposition, wouldn’t you say? For those seeking to add a touch of excitement to their portfolios, SoFi Technologies warrants a closer look. It’s a gamble, of course. But as any seasoned speculator knows, fortune favors the bold…and those with a well-timed exit strategy.

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2026-02-27 18:22