Shares of SoFi Technologies (SOFI 7.12%) have been ripping higher. In the past 12 months, they have skyrocketed 198% (as of Aug. 20). Strong financial performance is driving greater excitement from the investment community.
That type of return in such a short period is hard to ignore. But there's one other reason every investor should know about this fintech stock.
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Disrupting the financial services industry
The financial services industry is massive, with large banks commanding a strong position. However, SoFi is becoming a highly regarded brand. And the company's huge growth is one reason investors need to pay attention.
As of June 30, SoFi had 11.7 million customers on its platform. That figure was up 34% year over year. And it's more than 10 times bigger than the total at the end of 2019. People are clearly finding tremendous value in SoFi's digital-only and user-friendly offerings.
More customers, unsurprisingly, leads to more revenue. The top line grew by 43% in Q2. And according to Wall Street consensus analyst estimates, revenue should rise 31% in 2025, before increasing by 22% in 2026 and 20% in 2027.
Breaking into the top 10
"It's a matter of when, not if, we become a top 10 financial institution," CEO Anthony Noto said in an interview two years ago. He clearly has his sights set on a lofty goal for SoFi over the long term.
The company is doing the right things to keep the growth engine roaring, specifically when it comes to expanding its offerings. For instance, SoFi is re-introducing cryptocurrency trading. And it plans to launch an international money-transfer service that leverages Bitcoin's (CRYPTO: BTC) lightning network for faster and cheaper transactions.
With a relentless focus on serving the various needs of its customers, SoFi has many years of strong growth ahead.
