In a remarkable turn of events, SoFi Technologies, Inc. has reported record revenue for the fourth quarter of 2024, sending its stock on a bullish trajectory.
The California-based fintech company announced a net revenue of $734.1 million, marking a 19% increase year-over-year, alongside an impressive adjusted net revenue of $739.1 million, which reflects a 24% rise from the previous year.
This performance not only exceeded analyst expectations but also underscores SoFi’s strategic shift towards more sustainable, fee-based revenue streams.
SoFi’s net income for the quarter surged to $332.5 million, a significant leap from $47.9 million in Q4 2023, translating to a net income margin of 45%.
The company’s earnings per share (EPS) reached $0.29, well above the anticipated EPS of $0.04, showcasing a strong operational execution and market demand for its services.
The stock market responded enthusiastically to these results, with SoFi’s shares jumping over 10% in after-hours trading following the earnings announcement.
This surge is part of a broader trend, as SoFi stock has gained approximately 127% over the past year, driven by solid quarterly performances and an optimistic outlook for 2025.
Analysts had mixed views leading up to the earnings report, with some expressing concerns over valuation while others maintained a bullish stance based on SoFi’s growth potential.
Notably, the stock has been characterized by high volatility, with a beta of 2.73, indicating it is nearly three times more volatile than the S&P 500.
Despite some analysts cautioning about stretched valuations—trading at a forward earnings multiple of 139x—the positive earnings surprise could trigger a short squeeze, as approximately 12.5% of SoFi’s float is currently shorted.
With the expected price swing post-earnings estimated at about 14.8%, investors are keenly watching how this momentum will unfold in the coming days.
Overall, SoFi’s record Q4 results not only highlight its resilience in a challenging economic environment but also position it favorably for continued growth as it navigates the financial landscape in 2025 and beyond.
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