SoFi Technologies, Inc. continues to confront a challenging financial landscape with its stock down 30% year-to-date and 46% from its 52-week high. Despite this, the company announced an expanded partnership with Mastercard, enabling its stablecoin, SoFiUSD, to be used in global transactions, which could strengthen its market position. With projections of $5.1 billion in revenue by 2028 and 50% growth in fee-based revenues, analysts see potential for SoFi to be a significant player in finance, although concerns about liquidity and market stability persist.
“SoFi Stock (SOFI) Slides 30% YTD. Here’s Why It’s a Buying Opportunity”
“Earlier this month, SoFi Technologies announced an expanded partnership with Mastercard that enables SoFiUSD, its fully reserved US dollar stablecoin, to be used as a settlement option across Mastercard’s global payments network, including potential applications in cross-border remittances, B2B transfers, and programmable treasury use cases.”
“SoFi Technologies’ narrative projects $5.1 billion revenue and $954.1 million earnings by 2028.”
“If this new Mastercard partnership works, it could strengthen that bullish view, but it could also force all of us to rethink how much regulatory and competitive risk we are comfortable with in SoFi’s story.”
“SoFi is focusing on deepening customer relationships through bundled financial services like lending, investing and banking. Its strategy seems to emphasize lifetime value over rapid user expansion.”
“On March 3, Keefe, Bruyette & Woods analyst Tim Switzer noted that the stablecoin partnership between SoFi Technologies, Inc. (NASDAQ:SOFI) and Mastercard Incorporated (NYSE:MA) is a “significant development.””
“However, the firm believes SoFi Technologies, Inc. (NASDAQ:SOFI) “has the chance to become a significant player in an industry that will likely consolidate around a few dominant, scaled coins/networks.””
“Keefe, Bruyette & Woods has an Underperform rating on the stock with a price target of $20.”
“What a brutal six months it’s been for SoFi. The stock has dropped 36.1% and now trades at $17.68, rattling many shareholders.”
“Thankfully, SoFi’s 42% annualized revenue growth over the last five years was incredible. Its growth surpassed the average financials company and shows its offerings resonate with customers.”
“SoFi’s full-year EPS flipped from negative to positive over the last four years. This is a good sign and shows it’s at an inflection point.”
“After the recent drawdown, the stock trades at 30.7× forward P/E (or $17.68 per share).”
