Since 2021, SoFi Technologies’ Stock Has Dropped Nearly 70%. Can I Buy It Today?

(CTN News) – A significant profit milestone has just been achieved by SoFi Technologies (NASDAQ: SOFI), and the company could be on track to generate double-digit annual revenue growth in the future. However, the stock is down almost 70% from its 2021 high.

When its founders conducted artificial intelligence (AI) research at Purdue University in 2013, SoFi was initially called MoneyLion. After the company’s toxic work culture was publicly disclosed, new management took over. As a result of this leadership team, new growth plans have been implemented that are still in progress today.

A combination of three businesses

As both a fintech platform and a bank, SoFi Technologies helps customers borrow money, save money, and invest. As a result, the company has the advantage of generating multiple revenue streams and is able to cross-promote its various businesses.

A large portion of the company’s revenue in 2023 will be derived from lending, which is the company’s largest segment. The lending business grew by 21% year-over-year, which is bread and butter, since once a relationship is established, it is easier to upsell these customers on other products.

The company’s technology division is its smallest and most speculative business, which includes a digital payment app and a banking platform for financial services companies, among others. Even though tech segment revenue grew by 12% in 2023, it only represents a small portion of its lending revenues. I am not seeing the big potential in these tech products, even though leadership has said that it is in “revenue acceleration mode.”.

In the next five years, SoFi’s financial services division will be one of the most important catalysts for growth.

One-year 115% growth

SoFi’s product lineup has been updated in 2019, two years after the company overhauled its management team. These products include Credit Card, SoFi Invest (online brokerage), and Checking and Savings.

SoFi’s popular loans and these financial offerings are well suited for each other. There are numerous opportunities for the company to sell additional products to customers and to attract new customers.

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