A hot consumer tech stock, SoFi Technologies (NASDAQ:SOFI) stock is making impressive moves in the industry.
The company has an early-mover advantage and is here to take fintech to a whole new level. It helps people achieve financial independence while managing their money with ease. SoFi is one of the unique players in the industry that is constantly innovating and building products around the consumer’s demands. SOFI stock is up more than 85% over a year and 16% in the last month.
The stock was trading at $10 in 2020 and hit an all-time high of $28 early this year. It has seen ups and downs and went from $18 last month to nearly $23 today. The rise in SOFI stock is because of the stellar third-quarter earnings reported by the company.
I have been bullish on SOFI stock since it was trading below $20. I had recommended a buy in September when the stock was trading around $15. If you had bought it at that time, you would be sitting on a 47% gain, but it is never too late to buy the stock. Let’s dig deeper into the earnings and SOFI products that will drive growth in the coming months.
Stellar Quarterly Results
SoFi reported strong third-quarter results and impressed the shareholders. This is its fifth consecutive quarter of positive EBITDA. The company saw a member growth of 96% from last year and hit 2.9 million, which is the second highest increase in a quarter in the history of the company. SoFi added 377,000 members this quarter.
Top products driving growth include SoFi Money, Sofi Credit card, and SoFi Invest. They contribute towards 79% of the new member growth. The total products saw a rise of 108% and hit 4.3 million. SoFi operates three segments – lending, financial, and technology. The lending segment saw an all-time high in revenues this quarter. It stood at $210 million, which is 30% up year over year.
The financial services segment reported net revenue of $12.6 million as compared to $3.2 million same quarter the previous year. Further, the technology segment reported a revenue of $50.2 million in the quarter, which is up 29% as compared to the previous year.
It was an impressive quarter for SoFi and investors should be ready for another solid quarter in the next few months.
The company has unique products and effective execution of the marketing strategy, which helps member growth. As long as the company continues to attract members and retain them, there is no slowing the growth momentum. SOFI stock is here to stay and it will be a leader in the fintech industry in the years to come.
The Bottom Line on SoFi Stock
The one-stop shop for all things finance helps meet the demands of members throughout their lifetime. This is what attracts users of all ages to the platform. No matter the stage your financial journey is in, with SoFi, you will have a product that helps make the right decision.
SoFi enjoys the first-mover advantage and has a massive market to cater to. Considering the revenue and member growth, SoFi looks well-positioned in the market and has a long way to go.
The stock is trading close to $23 today and is a solid buy. It has tremendous growth potential and as long as it continues to attract users, there is no stopping the company. One must not forget that SoFi could soon be granted the bank charter and it will change its path in no time. It will allow the company to accept deposits and expand the loan offerings.
SoFi stock can be a disrupter in the market and this is a great time to add it to your portfolio. It might take time to grow but this is a stock for the long term.
On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long-term gains. Her knowledge of words and numbers helps her write clear stock analysis.