SoFi Technologies (SOFI) has seen its stock rise 70% this year, fueled by solid financial performance and a growing member base. The company is set to release its third-quarter financial results on October 28. Enthusiasts of SOFI are hopeful about what lies ahead, pointing to good business execution, robust fundamentals, and declining interest rates. On the flip side, some analysts express concerns over potential risks related to the stock’s valuation. Currently, Wall Street holds a consensus rating of “Hold” for SoFi Technologies.
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In terms of earnings, projections suggest that SoFi will report an earnings per share of $0.08 for the third quarter of 2025, showing a 60% increase compared to the previous year. Additionally, sales are expected to grow by 27% year over year, reaching about $885.81 million.
SOFI continues to impress investors
Investors are impressed by SoFi Technologies’ swift growth and the steady increase in its member base and product range. In Q2 2025, the company added 850,000 new members, leading to a 34% rise in total membership, now at 11.7 million.
SoFi is also expanding its product offerings, with a 34% increase in available products year over year, totaling 17.1 million products by Q2 2025. Notably, the company just announced the introduction of Option Level 1 trading for qualified members.
Another factor that has bolstered SOFI’s stock this month is speculation around the government. The Trump administration is reportedly contemplating the sale of some of the $1.6 trillion in federal student loan debt to the private sector, which could significantly boost SoFi’s student loan refinancing business.
Analyst views on SOFI stock
Morgan Stanley analyst Jeffrey Adelson has recently increased his price target for SoFi Technologies from $13 to $18, reflecting a more positive outlook on the North American consumer banking sector. He highlighted a general decline in interest rates and noted improvements in short-term credit performance within the group.
Despite the increased target, Adelson retained a “sell” rating on SOFI stock. He, along with several other analysts, seem cautious, suggesting that the optimism surrounding SoFi’s growth may already be factored into its stock price. For non-GAAP earnings, SoFi’s stock has a price-to-earnings (P/E) ratio of 82.49x, compared to an average of 10.7x in the sector.
On the other hand, Mizuho analyst Dan Dolev recently boosted his price target for SoFi Technologies from $26 to $31, maintaining a Buy rating. Dolev’s research indicates that bank processors, consumer lenders, and exchanges are well-positioned to benefit from the forthcoming interest rate cuts. He particularly believes that SoFi’s “strong interest rate-driven outlook” might lead to higher valuation multiples.
Is SOFI stock a good buy?
Currently, Wall Street appears hesitant about SoFi Technologies. The stock has a consensus rating of Hold, with 5 Buys, 9 Holds, and 4 Sells. The average price target for SOFI stands at $21.39, suggesting a potential decline of 18.3% from its present level.
