Is SoFi Stock a Buy Now? | Colorful fool

With a market cap of $33 billion, SoFi technology (SOFI 0.61%) could fly under the radar, especially at a time when the investment community’s attention has focused primarily on companies working within the artificial intelligence (AI) boom. But this digital banking powerhouse should not be overlooked. It has successfully carved a niche for itself in the financial services industry.

This fintech stocks became the big winner. The stock price is up 80% in 2025 (as of December 5) and is up 489% over the past three years. The momentum is definitely working in favor of the company.

Should investors buy SoFi stock right now? Looking at basics and valuation, investors get the right perspective to make an informed decision.

SoFi has been on an incredible trajectory in recent years

It was quite impressive to see SoFi’s financial performance. All key metrics are moving in the right direction. In the third quarter (ended September 30), the company added 905,000 net new customers, bringing the total to 12.6 million. And it took in $950 million in adjusted net income during the quarter, up 38% from the same period in 2024. Those two numbers are up significantly from just three years ago.

CEO Anthony Noto is focused on the lofty goal of making SoFi one day a top 10 financial institution in the US. Given that banking industry is so large that there is definitely room for further expansion of SoFi. Of course, they must continue to perform at a high level.

Like other banks, SoFi’s growth engine will be fueled by its ability to capture cross-selling opportunities and get existing customers to use more products and services. Innovation is another factor to keep in mind. SoFi is finding ways to better serve the needs of its user base. It was launched recently cryptocurrency trading as well as the transfers it enables bitcoin lightning network.

It would be worrying if SoFi wasn’t already profitable. However, it has been showing a positive net profit according to generally accepted accounting principles (GAAP) for about two years now. And the base expanded. Adjusted net income is estimated at $455 million in 2025, double last year’s figure.

SoFi looks like a good business, especially when you look at its fundamentals. However, investors sold the stock on December 5, presumably in connection with the company’s decision raise $1.5 billion in equity capital. Management plans to use the cash for a wide variety of purposes. But the market’s reaction suggests investors are concerned that this could mean SoFi isn’t in such strong financial shape.

For what it’s worth, the business has plenty of room for growth, so the fresh capital can be put to good use in an effort to expand its customer base and increase sales and profits. What’s more, SoFi raised the same amount earlier in the year in July, and the stock has risen significantly since then.

Today’s Change

(-0.61%$-0.17

Current price

$27.61

Key data points

Market capitalization

33 billion dollars

Daily range

$27.05 -$27.83

Range 52 weeks

$8.60 -$32.73

Volume

65 million

Avg. flight

73 million

Gross margin

60.33%

Dividend yield

ON

Investment decisions depend on your valuation perspective

Any investor who takes a closer look at SoFi is likely to be impressed. The company has clearly been a huge success in a competitive banking industry dominated by dominant firms. And it does so with an intense focus on technology, data and user experience. It looks like SoFi has a long run of huge success ahead of it.

These fintech stocks should make it onto investors’ watch lists. In terms of quality, it will definitely pass the test. Another piece of the puzzle is evaluation. In an ideal world, investors would be able to buy stocks when they are cheap.

However, a valid argument can be made that stocks are expensive these days. Its monstrous performance, up 489% over the past three years, has resulted in the current price/earnings ratio of 50. SoFi undoubtedly has the potential to be a long-term winner for your portfolio, but investors need to assess how comfortable they are with the valuation.