Nio (NIO +2.92%) looked unstoppable during the pandemic's height as many electric vehicle (EV) stocks outpaced the S&P 500. However, revenue deceleration and a lack of profitability have crushed Nio, causing its shares to drop by more than 90% over the past five years.
Although the EV narrative has been crumbling due to the U.S. EV tax credit's expiration, Nio has continued to grow at a solid rate. The Chinese EV maker reported a 54.6% year-over-year increase in vehicle deliveries in December 2025.
That growth won't mean much if Nio continues to lose money on its vehicles. Luckily, investors don't have to commit to Nio stock for the long run. There are other companies that can deliver more compelling returns, including fintech company SoFi (SOFI 4.10%).
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The return to crypto trading is a significant opportunity
SoFi relaunched its crypto trading feature near the end of 2025, and it may turn into a long-term catalyst. Bitcoin's (BTC 0.82%) price has stabilized and may enjoy a rally if interest rates continue to drop and the economy remains strong.
NASDAQ: SOFI
Key Data Points
A Bitcoin rally can increase trading activity in SoFi Crypto and boost attention for the company's other financial products. Crypto trading can turn into a big deal, as Robinhood (HOOD 3.21%) investors saw when the company more than quadrupled its crypto transaction revenue in the third quarter.
SoFi may enjoy that type of momentum as more users trade crypto. The fintech company also launched a fully reserved stablecoin, which reflects a deepening commitment to the blockchain opportunity.
SoFi's profit margins are expanding
SoFi offers the same types of products you can find at traditional banks: Checking accounts, credit cards, brokerage accounts, loans, and other resources. However, SoFi has fewer overhead costs since it doesn't have any physical locations.
While SoFi wasn't always profitable, it eventually became profitable in fourth-quarter 2023. Less than two years later, SoFi is delivering double-digit net profit margins. Those margins are also coming with impressive revenue growth. Net sales increased by 38% year over year, while net income more than doubled.
The fintech company also added 905,000 members in Q4, bringing its total number to 12.6 million. That's a 35% year-over-year improvement in the membership growth rate, suggesting that rising revenue and margins may become more common.
SoFi wrapped up Q3 with a 14.6% net profit margin. Some of the largest financial institutions have net profit margins above 30%. If SoFi works to those levels within a few years, the valuation will look far more desirable. Progress toward higher margins also comes as the business continues to post excellent financial growth rates.
