SoFi Technologies (SOFI 2.29%) is making a name for itself in the financial services industry. Leaning on its digital-only approach, the business is doing a great job bringing on new customers who value a tech-forward platform that prioritizes the user experience. That success has helped drive up the share price 266% just in the past 12 months (as of Sept. 10).
Here's one reason why I believe Wall Street is so obsessed with this booming fintech stock.
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No signs of slowing down
SoFi continues to grow at a blistering pace. In fact, the gains accelerated in the second quarter (ended June 30). This massive expansion is probably why the market keeps bidding up the company's shares.
Revenue surged 43% year over year during the second quarter. That was a much faster pace than the 20% increase registered in Q1. And after adding 846,000 new customers in the last three months, a quarterly record, SoFi now has more than 11.7 million people on its platform.
The business is scaling quickly. And there are no signs of slowing down. Revenue is expected to grow by 30% in 2025, according to the management team. That figure could get a boost if interest rates come down, which could drive demand from borrowers for loans.
Buying at record highs
After their monster performance, shares trade close to their peak. Investors might be discouraged, thinking that there's no longer an opportunity here. Maybe it's best to wait for a significant pullback.
However, SoFi's incredible growth trajectory means that there is still upside for long-term investors. If valuation is a concern, though, then consider a dollar-cost-average approach to slowly build up a position in the stock.
