SOFI -1.79% NVDA -3.15% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
SoFi's (NASDAQ: SOFI) stock closed at a record high of $32.21 on Nov. 12, 2025. That marked a 133% gain over its previous 12 months. But today, the high-growth fintech stock trades at about $15. Let's see why it was cut in half, and why it might be worth nibbling on this month.
SoFi, founded as Social Finance in 2011, originally provided student loans. But over the years, it expanded into a "one-stop shop" for personal loans, auto loans, mortgages, credit cards, insurance plans, estate planning services, and stock and crypto trading services.
Missed AI's "Act 1"? Act 2 Could Be 14x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we're only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
SoFi acquired the digital payment processing company Galileo in 2020 and launched its own digital bank after receiving a U.S. bank charter in 2022. As a digitally native platform, SoFi attracted millions of younger Millennial and Gen Z customers.
At the end of 2021, SoFi had 2.5 million members and 1.9 million products in use. But by the end of the second quarter of 2026, it hosted 15.8 million members, marking 35% growth from a year earlier. Its products in use soared 42% year over year to 24.4 million. Galileo, which operates separately from SoFi's core business, hosts 135 million accounts.
For the full year, SoFi expects its adjusted revenue to grow 32%-35% as its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin expands about four to five percentage points to 33%-34%. From 2025 to 2028, analysts expect its revenue and adjusted EBITDA to grow at CAGRs of 27% and 37%, respectively.
With an enterprise value of $17.2 billion, SoFi trades at just 11 times this year's adjusted EBITDA. Two issues are compressing its valuations.
First, the Fed's interest rate hike in September -- its first in three years -- could throttle its lending activity and increase the risk of credit defaults. Second, SoFi is still often valued like a slower-growth conventional bank instead of a higher-growth fintech stock. But at the same time, rising rates are driving investors away from higher-growth stocks.
So when SoFi's enterprise value peaked at $37.9 billion (36 times its 2025 adjusted EBITDA) last November, it became an easy target for the bears. But as long as rising rates don't trigger a recession or credit crunch, they should support SoFi's near-term net interest income.
SoFi looks like an attractive investment at these levels because many investors are overlooking its core strengths. As long as SoFi continues to gain new members and expand its ecosystem, it could command a higher valuation once the macro environment stabilizes.
Before you buy stock in SoFi Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoFi Technologies wasn't one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $375,887!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,459,146!*
That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul.
*Stock Advisor returns as of October 8, 2026.
Leo Sun 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.
Is SoFi Stock a Buy in October 2026? was originally published by The Motley Fool
