The move could help the bank’s costs, improve revenues, and give it more business freedom. The bank charter acquisition will allow SoFi to legitimize its loan and deposit services and avoid third-party outsourcing. Our first pick is SoFi technologies, an online personal finance company, and bank.

Valuation Measures

SOFI’s revenues and non-GAAP EPS grew 19% and 150%, respectively, year over year in the fourth quarter. Despite these initiatives, SoFi Technologies’ growth trajectory has remained well below that of Upstart Holdings. This strong growth was driven by improved models, rising conversion rates and enhanced automation tools like instant income verification.

Better Fintech Stock: SoFi Technologies vs. Nu Holdings

The financial technology company also reported a decreased profit margin of 36% YOY, mainly driven by increased expenses. The stock price has more or less stabilized near the $1.70 mark since May 2022, which could indicate a bottom. The company offers installment loans, direct online sales, and purchase loans through its subsidiaries. HIVE has a market cap of $214 million, but what really caught our eye was its rare price-to-xcriticalgs ratio of 0.91x. In 2008, the penny stock had a nearly 700% run after its initial public offering.

However, revenue growth should accelerate significantly in 2026 due to two key factors. SoFi's numbers weren't as exciting as Robinhood's financial results, but they were still enough to beat the S&P 500 this year. The record activity was across equities, options, prediction markets, and futures. Comments from Robinhood CFO Jason Warnick imply that the fourth quarter will be another blowout. Robinhood delivered tremendous third-quarter results, with revenue more than doubling year-over-year and net income jumping by 271%. Here's what you should know about both fintech companies heading into the New Year.

• The financial technology company also reported a decreased profit margin of 36% YOY, mainly driven by increased expenses.
• If you invested $1,000 at the time of our recommendation, you’d have $1,072,908!
• The record activity was across equities, options, prediction markets, and futures.
• Fintech penny stocks could be considered a good long-term investment choice, considering the sector’s potential.
• The company's growth, supported by its superior user experience, is noteworthy.

Stocks mentioned

Nearly every other financial services company in the country -- and there are many -- is trying to follow a similar strategy, whether under its main banner or a sub-brand. For example, the company announced it is creating an advertising platform and hired the former head of Uber's (UBER 0.36%) ad business to run it. Real-time quote and/or trade prices are not sourced from all markets.

SoFi Technologies, Inc. Announces Pricing of Public Offering of Common Stock

SoFi just became profitable on a GAAP basis in the fourth quarter of 2023. In this case, SoFi stock trades at a forward P/E multiple of 45. If you pay an egregious forward price-to-xcriticalgs ratio (P/E), for instance, it can be difficult for profits to make up for it. A company that will generate significantly higher profits 10 years down the line should probably be worth a lot more than it is today.

Nvidia, Tesla dominate Dec. trading as 2025 options demand surges

The Latin American financial industry is arguably a decade behind the U.S. in terms of market saturation and competitiveness. This allows it to tap huge addressable markets while also benefiting from the growth and scaling advantages of tech companies. PayPal shines when it comes to profitability, but there's a lot that needs to go right for sustainable growth to return to the business. In fact, they are the https://xcritical.online/ two largest fintech investments I own in my portfolio (in full disclosure, SoFi is the bigger position). To be perfectly clear, I don't think anyone will go wrong with either of these stocks.

• Perhaps it was the fact that the digital bank and fintech company went public via a SPAC merger in 2021, at the height of a stock market bubble.
• Inflationary pressures and a new economic policy strategy could make financial technology a vital piece of the global financial puzzle.
• The 10 stocks that made the cut could produce monster returns in the coming years.
• Marc Guberti has no position in any of the stocks mentioned.

SoFi Technologies, Inc. (SOFI)

One of SoFi Technologies’ standout features is its ability to cross-sell services, driving higher member growth. Its revenue growth guidance of 57% for the first quarter and 59% for full-year 2025 indicates continued growth momentum in the near term. The company’s bottom line flipped to a non-GAAP profit of 29 cents per share from a loss of 11 cents in the year-ago quarter. In the last reported quarter, auto originations jumped 60%, HELOCs grew 60%, and small-dollar loans surged 115% quarter over quarter.

Inflationary pressures and a new economic policy strategy could make financial technology a vital piece of the global financial puzzle. What’s to come for financial technology seems exciting and could be equally profitable. However, the future of the trend is uncertain, and MOGO and the stock could see more pain ahead. Coinsquare recently announced that it received approval from IIROC for its investment dealer registration.

It's hard to imagine that crypto traders only trade crypto. More crypto trading activity can also boost trading for equities and other assets that are available on SoFi. It's feasible for SoFi Invest revenue to more than double year over year, which would make the xcritical price look like a bargain.

According to 16 analysts, the average rating for SOFI stock is "Buy." The 12-month stock price target is $25.61, which is a decrease of -5.81% from the latest price. Select to analyze similar companies using key performance metrics; select up to 4 stocks. In addition, it provides SoFi Money offers checking and savings accounts, and cash management products; and SoFi Invest, a mobile-first investment platform that offers access to trading and advisory solutions, such as investing and robo-advisory. SoFi Technologies, Inc. provides various financial services in the United States, Latin America, Canada, and Hong Kong. Artificial intelligence is reshaping investment strategies and playing a pivotal role in detecting fraud. Accounting software tools and cloud technologies are also redefining how we run businesses.

Analyst Price Targets

HIVE, a Canadian company, is also in the business of mining crypto and operating sustainable green data centers. The fintech stock specializes in financial products such as student and auto loan refinancing, mortgages, personal loans, and more. Its customer base accesses its financial services platform through its smartphone app, which offers products that range from crypto wallets and ETF investing to insurance and checking accounts. About 8.5 million financial services products like bank accounts, investment accounts, and credit cards have been opened in that period. The financial technology, or fintech, industry was one of the hardest hit parts of the stock market in the post-pandemic bear market, but there are still some excellent opportunities. For a bank such as SoFi, investors want to see the company's tangible book value (TBV) increase over time.

SoFi's strong business performance has fueled the stock's dramatic rise

Now, it’s worth noting Stock Advisor’s total average return is 1,035% — a market-crushing outperformance compared to 191% for the S&P 500. If you invested $1,000 at the time of our recommendation, you’d have $1,165,716! If you invested $1,000 at the xcritical website time of our recommendation, you’d have $599,785! But after such a strong outing in 2025, investors may want to temper their expectations for 2026. That makes the stock a good buy-and-hold candidate.

The latest xcriticalgs report shows that the company’s revenue is down nearly 10% YOY, and its net income is down 53% YOY. It’s uncertain when the Chinese economy will turn around, but the xcritical selloff may offer investors a discount opportunity. The stock has been on a non-stop plunge since its June 2021 $13.50 peak. Trading in major exchanges and not over the counter means that the company is more rigorously vetted and could pose a lesser risk. It’s uncertain if the bottom is in for crypto or not, and further downside for the sector could hurt RIOT’s performance.

The top bank posted a stellar net income margin of 31% in Q3. One obvious reason is SoFi's digital-only business model. It should be a much larger organization a decade from now, with a bigger user base and broader suite of products and services offered. As mentioned, customer additions and revenue growth remain impressive. Since then, the business has seen its bottom line expand rapidly.

The company recently reported third-quarter results that showed it mined 521 Bitcoins in November, up 12% YOY. During the 2017 crypto bull market, RIOT returned an astonishing 2,000% from bottom to peak. RIOT is a Bitcoin mining company that operates as a data center and a mining company.

Nu's business model is very similar to SoFi's. Even so, SoFi trades at a higher valuation than Nu Holdings, which boasts a faster growth rate and a wider profit margin. But from an investment standpoint, which one is the better pick? Two of the more exciting fintech companies today are SoFi Technologies (SOFI 0.58%) and Nu Holdings (NU +0.84%).