Why SoFi Stock Fell 20% in March
SoFi Technologies (NASDAQ: SOFI) stock fell 20% in March according to data provided by S&P Global Market Intelligence. The market's been in turmoil due to President Donald Trump's tariff plans, and riskier growth stocks typically bear the brunt of volatility when the market's in flux.SoFi is an all-digital bank that's catching on with its core student and young professional target market. It's growing quickly, adding new members and more revenue, and the future looks bright.As of the end of 2024, SoFi had 10.1 million members, a 34% year-over-year increase, and 14.7 million products, a 32% year-over-year increase. It's known for its lending segment, which is still its main category, accounting for more than half of total revenue last year, but not much more than half, and its other segments are growing faster. Non-lending segments, which include financial services and its business-to-business fintech platform, accounted for 49% of total revenue in the fourth quarter, up from 40% the year before. Financial services is on fire, with revenue up 88% in 2024. SoFi got a bank charter in 2022 when it acquired Golden Pacific Bancorp, and it now offers a large suite of financial services like bank accounts, investing tools, and more, and it differentiates itself by featuring innovative services like access to some initial public offerings (IPOs) and some alternative investment vehicles. Having a wider assortment of products helps keep members managing their money all on SoFi's app and increases engagement.Continue reading
SoFi Technologies (NASDAQ: SOFI) stock fell 20% in March according to data provided by S&P Global Market Intelligence. The market's been in turmoil due to President Donald Trump's tariff plans, and riskier growth stocks typically bear the brunt of volatility when the market's in flux.
SoFi is an all-digital bank that's catching on with its core student and young professional target market. It's growing quickly, adding new members and more revenue, and the future looks bright.
As of the end of 2024, SoFi had 10.1 million members, a 34% year-over-year increase, and 14.7 million products, a 32% year-over-year increase. It's known for its lending segment, which is still its main category, accounting for more than half of total revenue last year, but not much more than half, and its other segments are growing faster. Non-lending segments, which include financial services and its business-to-business fintech platform, accounted for 49% of total revenue in the fourth quarter, up from 40% the year before. Financial services is on fire, with revenue up 88% in 2024. SoFi got a bank charter in 2022 when it acquired Golden Pacific Bancorp, and it now offers a large suite of financial services like bank accounts, investing tools, and more, and it differentiates itself by featuring innovative services like access to some initial public offerings (IPOs) and some alternative investment vehicles. Having a wider assortment of products helps keep members managing their money all on SoFi's app and increases engagement.
