6 Reasons to Buy SoFi Technologies Stock Like There's No Tomorrow

Key Points

• Wall Street has finally caught on to the rampant growth at SoFi Technologies.

• The digital bank is thriving, and profits are beginning to accumulate, a good sign for the stock's prospects.

• SoFi's valuation has become somewhat elevated, but a long growth runway helps justify buying shares.

• 10 stocks we like better than SoFi Technologies ›

SoFi Technologies (NASDAQ: SOFI) has long been a volatile stock, but investors have begun to believe in the digital bank's prospects. The shares are on a remarkable run, surging more than 200% over the past year.

It's impossible to know how long it will sustain its momentum. That said, investors who can look at the big picture for SoFi Technologies can gain perspective on the stock's long-term potential -- specifically, the next five years and beyond.

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So I looked into the fintech to help investors gain that perspective. What I found were six reasons to consider buying the stock like there's no tomorrow.

Image source: Getty Images

1. It's digitizing the banking ecosystem

SoFi is a digital bank, meaning it has no physical branches. Instead, customers conduct all their banking online through its website or smartphone app. It's not the only digital bank; brick-and-mortar competitors also offer online banking.

However, the fintech has arguably done the best job at creating a digital ecosystem with its app. In this one-stop shop, users can easily access all of its lending products and services. They can bank, invest, and borrow, all within the app, which lowers customer acquisition costs.

2. Its rampant user growth

How do you determine whether SoFi's ecosystem works? Take a look at the fintech's rapid user growth. The company's customer base has grown from 1.4 million in the first quarter of 2020 to 10.9 million as of the first quarter in 2025.

The U.S. population isn't growing remotely that fast, so the obvious conclusion is that people are leaving other banks for SoFi. It's an excellent indicator of what they think of its user experience.

3. The abundant cross-selling opportunities

One of the company's primary growth opportunities is cross-selling, where an individual signs up with SoFi for a specific product or service and gradually begins using other products and services over time. For example, someone may open a checking account and subsequently open an investment account.

There are currently 15.9 million products actively in use on the bank's platform, or about 1.5 per customer. There is still room for a significant amount of cross-selling over the coming years, which is a tailwind as customer acquisition eventually levels off or slows.

4. Is a student loan boom coming?

SoFi cut its teeth in the student loan business, which ironically has been somewhat dormant since the government froze most student loan repayments in response to the pandemic. The fintech's student loan originations were $1.2 billion in the first quarter of 2025, compared to $2.1 billion in the first quarter of 2020, despite having many more users today.

The Trump Administration has pushed to get borrowers back into repayment, which may lead to a surge in refinancing activity that could reignite what was once arguably SoFi's most important business.

5. SoFi's profits are following its growth

It's one thing to grow -- and to be clear, the bank has grown tremendously over the past several years. Its trailing-12-month revenue of $2.8 billion is multiples of what it was a few years prior. But that only goes so far if the business doesn't generate a profit.

Fortunately, SoFi is starting to produce profits to match that growth. The company earned a net profit for the first time in 2024, while its book value rose 39%.

This year, management is guiding for earnings of $0.27 per share, up from $0.15 in 2024, and a $585 million to $600 million increase in book value.

6. Growth momentum remains strong

One criticism of its stock is its high price tag. Naturally, such a large rally in share price has lifted the valuation in the process.

Trading at 4.9 times book value, it's arguably the most expensive bank stock on Wall Street. Investors buying now must hope that the business continues to expand and grow into that valuation.

The good news is that growth momentum looks fantastic. The user base increased by 34% year over year in the first quarter, and the company's net revenue rose by 33%, its fastest gain in five quarters. It doesn't seem like a company approaching its ceiling anytime soon, which gives long-term investors the green light to buy shares.

If valuation remains a concern, consider buying the stock gradually, looking for pullbacks to add to your position. Given how volatile SoFi Technologies' stock has been in the past, it's reasonable to anticipate some dips over the coming months.

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Justin Pope has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.