SoFi Technologies (SOFI) stock has rallied 70% year-to-date, driven by the fintech and digital bank’s impressive financials and continued expansion of its member base. The company is scheduled to announce its third-quarter results on October 28. SOFI bulls are optimistic about the road ahead due to the company’s solid execution, strong fundamentals, and interest rate cuts. However, many analysts see downside risk in SOFI stock due to valuation concerns. Overall, Wall Street currently has a Hold consensus rating on SoFi Technologies stock.
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Meanwhile, Wall Street expects SoFi to report earnings per share of $0.08 for Q3 2025, reflecting a 60% year-over-year growth. Revenue is expected to grow 27% year-over-year to $885.81 million.
SOFI Continues to Impress Investors
SoFi Technologies has been impressing investors with its rapid growth and continued expansion in its member base and product offerings. In Q2 2025, SOFI added 850,000 new members to its platform, resulting in a 34% growth in the total member base to 11.7 million.
Moreover, the company continues to expand its product portfolio. SoFi’s product base increased 34% year-over-year to 17.1 million products in Q2 2025. Interestingly, the company recently announced the launch of Options Level 1 trading for eligible members.
Aside from optimism about the company’s growth prospects, another factor that boosted SOFI’s stock price this month was a report by Politico about the Trump administration considering the sale of some of the $1.6 trillion in federal student loan debt to the private market. This move could significantly benefit SoFi’s student loan refinancing business.
Analysts’ Views on SOFI Stock
Recently, Morgan Stanley analyst Jeffrey Adelson increased the price target for SoFi Technologies stock to $18 from $13, citing an improvement in his view of the North America consumer finance group to “In-Line” from “Cautious.” Adelson noted that interest rates are moving lower. In particular, he highlighted that the group’s near-term credit performance continues to improve.
While Adelson increased his price target for SOFI stock, he maintained a Sell rating. Adelson and several other analysts are sidelined or bearish on SOFI stock, as they believe that the optimism about the company’s growth potential is already priced into the stock. Based on non-GAAP earnings, SOFI stock trades at a P/E (price-to-earnings) valuation multiple of 82.49x, compared to the sector average of 10.7x.
Meanwhile, Mizuho analyst Dan Dolev recently increased his price target for SoFi Technologies stock to $31 from $26 and reaffirmed a Buy rating. Dolev’s analysis indicates that bank processors, consumer lenders, and exchanges are best positioned to benefit from interest rate cuts. Specifically, the top-rated analyst believes that SoFi’s “strong rate-driven outlook” commands a higher valuation multiple.
Is SOFI Stock a Good Buy?
Currently, Wall Street is sidelined on SoFi Technologies stock, with a Hold consensus rating based on five Buys, nine Holds, and four Sell recommendations. The average SOFI stock price target of $21.39 indicates a possible downside of 18.3% from current levels.
