SoFi Technologies (SOFI) stock has rallied 174% over the past year. In fact, the stock has jumped 33% over the past month. Investors are impressed by the fintech company and digital bank’s solid financials and its expanding consumer base. Moreover, they welcomed SoFi’s re-entry into the crypto investing space and its plans to offer stablecoins and other crypto services to boost its business. While SoFi stock is trending higher, Wall Street is cautiously optimistic ahead of the upcoming second-quarter results, with some analysts seeing downside risk.
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Sentiment Ahead of SoFi’s Upcoming Q2 Earnings
SoFi Technologies is scheduled to announce its earnings for the second quarter of 2025 on July 29. Wall Street expects SoFi to report EPS (earnings per share) of $0.06, reflecting a significant jump from $0.01 in the prior-year quarter. Furthermore, revenue is expected to grow by 34% to $801.8 million. Following SoFi’s impressive results for the first quarter of 2025, expectations are high for the company to beat analysts’ estimates. Notably, the company reported 800,000 new member additions for Q1 2025, expanding its membership base to 10.9 million.
Currently, analysts have mixed views on SoFi stock. While bulls are optimistic about continued strength in the company’s top-line growth and the Financial Services segment, SoFi bears argue that there is no room left for error, given the stock’s lofty valuation.
Recently, Stephens analyst Kyle Joseph initiated coverage of SoFi stock with a Buy rating and a Street-high price target of $20. The 4-star analyst is bullish on the company’s diversified growth platform and “productivity loop.” He believes that SoFi’s growth prospects remain robust. Joseph expects the shift in the company’s mix to fee-based revenues to fuel multiple expansion.
In contrast, Bank of America analyst Mihir Bhatia reaffirmed a Sell rating on SoFi stock with a price target of $13. While the 5-star analyst acknowledged the fintech company’s solid execution, especially in the Financial Services segment, he remains concerned about SoFi stock’s rich valuation and the aggressive nature of its fair value accounting. While Joseph’s price target for SoFi stock indicates an upside potential of 13.4%, Bhatia’s price forecast implies a possible downside of 26.3% from current levels.
Is SOFI a Good Stock to Buy?
Overall, Wall Street has a Moderate Buy consensus rating on SoFi Technologies stock based on seven Buys, five Holds, and three Sell recommendations. The average SOFI stock price target of $14.05 indicates a 20.4% downside risk from current levels.
