When a Fintech Name (SOFI) Stood Out on My Screen

A Story About Finding SoFi (SOFI)

On June 5, 2025 I was doing what I do regularly—scanning the market. I wasn’t chasing headlines or trying to predict where the market would go. I was simply applying a disciplined routine: look for technical patterns that may reveal underlying stories. That day, I focused on the ascending triangle—a classic formation where price action builds higher lows against a horizontal resistance. It gives you a solid lean list to explore further.

That’s when SoFi Technologies (SOFI) surfaced. It wasn’t in my portfolio. It wasn’t in the news. In fact, while the spotlight was firmly on semiconductors, AI, and energy stocks, this fintech quietly caught my eye. Precisely because it was off the radar, I decided to dig in.

Why This Pattern Meant Something

Technically, the setup was clean:

• SoFi had been basing in the $9–$14 range for several months.

• On strong volume, it recently broke out above $12.50, a key resistance level.

• The breakout was supported by a rising trend of higher lows, confirming buying interest.

• The stock reached $13.40, up over 40% from its April lows—and was holding that level, not just spiking and fading.

• Momentum indicators were strengthening, and relative strength compared to financial sector peers was rising.

• Volume patterns confirmed conviction—spikes on up-days, dry-ups on pullbacks.

This wasn’t just a breakout. It was a breakout with structure.

The Fundamentals Lined Up Too

Digging into the numbers, SoFi was telling a story of real transformation:

• After years of reinvestment, the company finally turned profitable in Q2 2024.

• Gross margins jumped from 43.8% to 54.2% between Q2 and Q3 2024.

• Net profit margin tripled from 2.0% to 6.1% in that same period.

• Q1 2025 earnings beat estimates:

  • EPS came in at $0.06 vs. $0.04 expected

  • Revenue hit $770M, beating consensus by over 4%

  • Financial services revenue rose 101% year-over-year

• The company raised full-year guidance, a sign of confidence in execution.

From a valuation perspective, SoFi trades at a price-to-book ratio of 1.32—modest for a fintech. Many peers with similar growth profiles are priced at 2–3x book value. This suggests room for multiple expansion, if profitability continues to scale.

The Business Behind the Chart

SoFi isn’t just another online lender. It’s aiming to become a financial services superapp, offering a bundled experience across banking, investing, lending, and now retirement planning and crypto.

In recent months, they’ve made moves that caught my attention:

• May 7: Integrated Capitalize’s 401(k) rollover API, positioning themselves in the retirement space.

• May 4: Announced plans to reintroduce crypto investing—a timely re-entry as digital assets regain interest.

• May 16: Partnered with Kelsea Ballerini and tnAchieves in a $2M initiative promoting financial literacy.

• Student loan repayments have resumed, reigniting a core driver of their lending business.

This isn’t a company that’s betting on a single idea—it’s building out multiple revenue streams, and they’re starting to deliver results.

Analyst Views – Mixed, But Shifting

Analyst sentiment is gradually turning:

• JP Morgan (April 25): Buy, $17 target

• Needham (April 30): Buy, $20 target; even said SoFi could be the "American Express of fintech"

• UBS, Barclays, and Truist: Neutral, but all raised their price targets in recent months

• Consensus target: $15.70

No major "Sell" calls. That alone is notable.

What I Take Away

I didn’t set out to write about SoFi. I didn’t even expect to find a fintech idea that week. But by staying disciplined with my scan, a name emerged. I did the work—from pattern to price action, from margins to partnerships—and uncovered a company that’s quietly turning the page.