Analysis of Investment Opportunities in Digital Banks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Should l Buy SOFI?
Source: Fool
- Latin American Market Potential: Nu Holdings offers various banking products in Latin America, achieving over 60% customer coverage in Brazil and 13 million and 4 million customers in Mexico and Colombia, respectively, indicating strong growth potential in the unbanked population, with revenue expected to rise 123% from 2025 to 2028.
- Profitability Improvement: Nu's net income margin reached 18.8% in Q3, a significant improvement from a net loss in the same period of 2021, with monthly revenue per active customer at $13.40, far exceeding the $0.90 cost to serve, showcasing excellent unit economics and risk management capabilities.
- Innovation-Driven Growth: SoFi Technologies achieved adjusted net revenue of $3.6 billion in 2025, up 38% year-over-year, and added 1 million net new customers in Q4, bringing total membership to 13.7 million, enhancing customer stickiness through a diverse product offering.
- Future Growth Expectations: SoFi's adjusted net income grew by 112% in 2025, with projections for a 72% increase in 2026, and management forecasts a compound annual growth rate of 40% in earnings per share from 2025 to 2028, indicating strong profitability growth potential.
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Analyst Views on SOFI
Wall Street analysts forecast SOFI stock price to rise
14 Analyst Rating
5 Buy
6 Hold
3 Sell
Hold
Current: 19.300
Low
18.00
Averages
28.31
High
38.00
Current: 19.300
Low
18.00
Averages
28.31
High
38.00
About SOFI
SoFi Technologies, Inc. is a member-centric, one-stop shop for digital financial services. The Company, through its lending and financial services products, allows members to borrow, save, spend, invest and protect their money. The Company's segments include Lending, Technology Platform and Financial Services. The Lending segment offers personal loans, student loans, home loans and related servicing to help its members with a variety of financial needs. Its platform supports the full transaction lifecycle, including credit application, underwriting, approval, funding and servicing. The Technology Platform segment provides services through a diversified suite of offerings which include an event and authorization platform accessed via application programming interfaces, a cloud-native digital and core banking platform and services related to both platforms. The Financial Services segment offers a suite of financial services solutions, including SoFi Money and SoFi Invest.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
SoFi Technologies Shares Surge 141% Yet Still Attractive for Investors
- Stock Performance: As of February 13, SoFi Technologies' shares have surged 141% over the past two years, despite currently trading 39% below its peak from November 2025, indicating market volatility and profit-taking by investors.
- Revenue Growth: In Q4 2025, SoFi reported a 37% year-over-year increase in adjusted net revenue, with its customer base expanding from 10.1 million to 13.7 million, demonstrating the company's rapid growth and ability to attract new users.
- Profitability Improvement: Adjusted net income soared 112% in 2025, with expectations of a 72% increase in 2026, and the leadership team forecasts annualized adjusted earnings-per-share growth of 38% to 42% from 2025 to 2028, showcasing a strong profitability trajectory.
- Investment Timing: Despite SoFi's elevated forward price-to-earnings ratio of 32.7, investors may still consider holding the stock with a five to ten-year horizon to capitalize on long-term gains, reflecting confidence in the company's future growth potential.
See More
Investment Comparison: PayPal vs. SoFi
- PayPal's Low Valuation: PayPal trades at less than 8 times forward earnings, significantly lower than most fintech stocks, yet its recent quarterly results fell short of expectations, leading to a more than 20% drop in share price.
- Struggling Growth Business: The company's branded checkout segment has seen growth slow from 6% last year to just 1% this quarter, indicating challenges in key growth areas and suggesting a lengthy recovery ahead.
- SoFi's Strong Performance: In stark contrast, SoFi's stock has risen 41% over the past year; despite a recent pullback due to earnings missing expectations, it still trades at a premium 32 times forward earnings, reflecting market confidence in its growth.
- Future Growth Expectations: SoFi anticipates over 30% revenue growth and 38% to 42% earnings growth in the coming years, and if these targets are met, its stock could maintain a high valuation and rise accordingly.
See More
Analysis of Investment Opportunities in Digital Banks
- Latin American Market Potential: Nu Holdings offers various banking products in Latin America, achieving over 60% customer coverage in Brazil and 13 million and 4 million customers in Mexico and Colombia, respectively, indicating strong growth potential in the unbanked population, with revenue expected to rise 123% from 2025 to 2028.
- Profitability Improvement: Nu's net income margin reached 18.8% in Q3, a significant improvement from a net loss in the same period of 2021, with monthly revenue per active customer at $13.40, far exceeding the $0.90 cost to serve, showcasing excellent unit economics and risk management capabilities.
- Innovation-Driven Growth: SoFi Technologies achieved adjusted net revenue of $3.6 billion in 2025, up 38% year-over-year, and added 1 million net new customers in Q4, bringing total membership to 13.7 million, enhancing customer stickiness through a diverse product offering.
- Future Growth Expectations: SoFi's adjusted net income grew by 112% in 2025, with projections for a 72% increase in 2026, and management forecasts a compound annual growth rate of 40% in earnings per share from 2025 to 2028, indicating strong profitability growth potential.
See More
2026 Portfolio Reset Strategies Amid Market Volatility
- Alphabet Cloud Growth: Despite a 11% decline in Alphabet's (GOOG) stock since early February, its cloud computing segment grew 48% year-over-year in Q4 2025, with operating profits up 53%, indicating strong potential in AI and expected sustained growth in the coming quarters.
- Search Business Stability: Alphabet's search business remains robust amid economic uncertainty, with Google Services' operating income increasing by 22% last quarter, demonstrating that its core business continues to be a strong cash flow source supporting future investments.
- SoFi Customer Growth: SoFi Technologies (SOFI) has surpassed 13.6 million customers, an 8% increase from Q3, reflecting the success of its online banking model in a digital environment, even as its stock has fallen nearly 40% from its November peak.
- Analyst Optimism: Despite waning market confidence in SoFi, analysts maintain a consensus price target of $26.94, representing a 37% upside from current levels, indicating recognition of its future growth potential and an anticipated stock rebound soon.
See More
SoFi Leverages Bitcoin Network for Innovative Cross-Border Payments
- Innovative Payment Solution: SoFi's partnership with Lightspark enables fast and low-cost cross-border payments using the Bitcoin Lightning network directly within its app, covering over 30 countries, significantly enhancing user experience and potentially attracting more customers.
- Strong Customer Growth: In 2025, SoFi's adjusted net revenue surged 38% year-over-year, adding 1 million new customers in the last three months alone, bringing the total to 13.7 million, showcasing robust growth momentum in the fintech sector.
- Massive Market Potential: Approximately $38 billion was remitted between the U.S. and India in 2024, and SoFi's innovative service aims to disrupt traditional barriers of high fees and long processing times, positioning itself to capture a share of this vast market.
- Rising Bitcoin Demand: By offering more convenient remittance services, SoFi not only enhances liquidity for users but also has the potential to drive demand and transaction volume for Bitcoin, which could elevate its price in the long run.
See More
SoFi Technologies Sees Significant Customer Growth
- Significant Revenue Growth: In 2025, SoFi Technologies reported a 38% year-over-year increase in adjusted net revenue, demonstrating strong market performance and ongoing business expansion, which further solidifies its competitive position in the fintech sector.
- Customer Base Expansion: In the last three months of 2025, SoFi added 1 million new customers, bringing the total to 13.7 million, indicating that its focus on innovation and product development has successfully attracted more users and enhanced customer loyalty.
- Cross-Border Payment Innovation: SoFi's partnership with Lightspark has launched a fast and low-cost cross-border payment service, enabling U.S. users to send money to over 30 countries, leveraging the Bitcoin Lightning network to enhance transaction speed and reduce costs, significantly improving user experience.
- Huge Market Potential: With remittances between the U.S. and India reaching $38 billion in 2024, SoFi aims to disrupt the traditional remittance market by lowering fees and processing times, attracting customers seeking better value propositions, and is poised for continued customer growth.
See More
SoFi Technologies Shares Surge 141% Yet Still Attractive for Investors
- Stock Performance: As of February 13, SoFi Technologies' shares have surged 141% over the past two years, despite currently trading 39% below its peak from November 2025, indicating market volatility and profit-taking by investors.
- Revenue Growth: In Q4 2025, SoFi reported a 37% year-over-year increase in adjusted net revenue, with its customer base expanding from 10.1 million to 13.7 million, demonstrating the company's rapid growth and ability to attract new users.
- Profitability Improvement: Adjusted net income soared 112% in 2025, with expectations of a 72% increase in 2026, and the leadership team forecasts annualized adjusted earnings-per-share growth of 38% to 42% from 2025 to 2028, showcasing a strong profitability trajectory.
- Investment Timing: Despite SoFi's elevated forward price-to-earnings ratio of 32.7, investors may still consider holding the stock with a five to ten-year horizon to capitalize on long-term gains, reflecting confidence in the company's future growth potential.
See More
Investment Comparison: PayPal vs. SoFi
- PayPal's Low Valuation: PayPal trades at less than 8 times forward earnings, significantly lower than most fintech stocks, yet its recent quarterly results fell short of expectations, leading to a more than 20% drop in share price.
- Struggling Growth Business: The company's branded checkout segment has seen growth slow from 6% last year to just 1% this quarter, indicating challenges in key growth areas and suggesting a lengthy recovery ahead.
- SoFi's Strong Performance: In stark contrast, SoFi's stock has risen 41% over the past year; despite a recent pullback due to earnings missing expectations, it still trades at a premium 32 times forward earnings, reflecting market confidence in its growth.
- Future Growth Expectations: SoFi anticipates over 30% revenue growth and 38% to 42% earnings growth in the coming years, and if these targets are met, its stock could maintain a high valuation and rise accordingly.
See More
Analysis of Investment Opportunities in Digital Banks
- Latin American Market Potential: Nu Holdings offers various banking products in Latin America, achieving over 60% customer coverage in Brazil and 13 million and 4 million customers in Mexico and Colombia, respectively, indicating strong growth potential in the unbanked population, with revenue expected to rise 123% from 2025 to 2028.
- Profitability Improvement: Nu's net income margin reached 18.8% in Q3, a significant improvement from a net loss in the same period of 2021, with monthly revenue per active customer at $13.40, far exceeding the $0.90 cost to serve, showcasing excellent unit economics and risk management capabilities.
- Innovation-Driven Growth: SoFi Technologies achieved adjusted net revenue of $3.6 billion in 2025, up 38% year-over-year, and added 1 million net new customers in Q4, bringing total membership to 13.7 million, enhancing customer stickiness through a diverse product offering.
- Future Growth Expectations: SoFi's adjusted net income grew by 112% in 2025, with projections for a 72% increase in 2026, and management forecasts a compound annual growth rate of 40% in earnings per share from 2025 to 2028, indicating strong profitability growth potential.
See More
2026 Portfolio Reset Strategies Amid Market Volatility
- Alphabet Cloud Growth: Despite a 11% decline in Alphabet's (GOOG) stock since early February, its cloud computing segment grew 48% year-over-year in Q4 2025, with operating profits up 53%, indicating strong potential in AI and expected sustained growth in the coming quarters.
- Search Business Stability: Alphabet's search business remains robust amid economic uncertainty, with Google Services' operating income increasing by 22% last quarter, demonstrating that its core business continues to be a strong cash flow source supporting future investments.
- SoFi Customer Growth: SoFi Technologies (SOFI) has surpassed 13.6 million customers, an 8% increase from Q3, reflecting the success of its online banking model in a digital environment, even as its stock has fallen nearly 40% from its November peak.
- Analyst Optimism: Despite waning market confidence in SoFi, analysts maintain a consensus price target of $26.94, representing a 37% upside from current levels, indicating recognition of its future growth potential and an anticipated stock rebound soon.
See More
SoFi Leverages Bitcoin Network for Innovative Cross-Border Payments
- Innovative Payment Solution: SoFi's partnership with Lightspark enables fast and low-cost cross-border payments using the Bitcoin Lightning network directly within its app, covering over 30 countries, significantly enhancing user experience and potentially attracting more customers.
- Strong Customer Growth: In 2025, SoFi's adjusted net revenue surged 38% year-over-year, adding 1 million new customers in the last three months alone, bringing the total to 13.7 million, showcasing robust growth momentum in the fintech sector.
- Massive Market Potential: Approximately $38 billion was remitted between the U.S. and India in 2024, and SoFi's innovative service aims to disrupt traditional barriers of high fees and long processing times, positioning itself to capture a share of this vast market.
- Rising Bitcoin Demand: By offering more convenient remittance services, SoFi not only enhances liquidity for users but also has the potential to drive demand and transaction volume for Bitcoin, which could elevate its price in the long run.
See More
SoFi Technologies Sees Significant Customer Growth
- Significant Revenue Growth: In 2025, SoFi Technologies reported a 38% year-over-year increase in adjusted net revenue, demonstrating strong market performance and ongoing business expansion, which further solidifies its competitive position in the fintech sector.
- Customer Base Expansion: In the last three months of 2025, SoFi added 1 million new customers, bringing the total to 13.7 million, indicating that its focus on innovation and product development has successfully attracted more users and enhanced customer loyalty.
- Cross-Border Payment Innovation: SoFi's partnership with Lightspark has launched a fast and low-cost cross-border payment service, enabling U.S. users to send money to over 30 countries, leveraging the Bitcoin Lightning network to enhance transaction speed and reduce costs, significantly improving user experience.
- Huge Market Potential: With remittances between the U.S. and India reaching $38 billion in 2024, SoFi aims to disrupt the traditional remittance market by lowering fees and processing times, attracting customers seeking better value propositions, and is poised for continued customer growth.
See More
