What happened

Shares of SoFi Technologies (SOFI -1.03%) stock fell 24% in August, according to data from S&P Global Market Intelligence. Bank stocks as a group fell because of more macroeconomic concerns about continued inflation, and because the Federal Reserve resumed interest-rate increases.

So what

SoFi has been demonstrating strong momentum. Sales continue to increase at a high rate, 37% over last year in the 2023 second quarter, to $498 million. It recruited close to 600,000 new members, for a total of 6.2 million, and it added more than 800,000 new products across its categories.

It's also getting closer to profitability. Adjusted earnings before interest, taxes, depreciation, and amortization increased 237% to $78 million, and it's expecting to turn a profit by the end of the year.

SoFi started out as a student loan cooperative, and as it's gotten bigger, it's expanded into multiple digital financial products. However, its core customer is still the student, or post-student, and this younger cohort is drawn to SoFi's easy-to-use, one-stop app that offers bank accounts, credit cards, and more, all in a digital format with low fees. Financial-services products are growing rapidly, with bank accounts up 47%, investing accounts up 18%, and credit cards up 53%. Financial services revenue increased 223% in the quarter, with net interest income up 477%.

It's done a great job of breaking out of its student loan business and offering a broad array of financial services, and that has enabled it to keep growing even as the student moratorium paused loan repayments. Student loans continue to be affected, and volume was down 1% from last year in the second quarter. Housing loans, which have been largely affected as well, were down 27%. But personal loans increased 51% over 2022, and net interest income increased 103%.

Now what

SoFi stock is up 91% this year, and it's already rebounding from the August dip. At the current price, shares trade at 4.4 times trailing-12-month sales, which seems very reasonable considering its performance and opportunities.

It looks to have an incredible future ahead. Although growth rates have decelerated, they're still high, especially for a bank and compared with how other fintech companies are faring right now. Investors can view this drop as a chance to buy on the dip, and if it does post profits within the next two quarters, expect the stock to reflect that.