SoFi Technologies Surges 56% Annually, Outperforming S&P 500

As of August 2025, the fintech company SoFi Technologies has been an exceptional investment, outperforming the broader market. Over the past 3 years, a $1,000 investment in SoFi would now be worth around $3,824, representing an average annual gain of 56% - far exceeding the S&P 500's still-respectable 17% growth.

SoFi, an online bank and financial services provider, has rapidly expanded beyond its initial focus on student loans to offer a wide range of products, including auto loan refinancing, personal loans, mortgages, credit cards, and investments. The company particularly targets millennials and younger consumers through its app and website, aiming to be a one-stop shop for their financial needs.

One of SoFi's key offerings is its "SoFi Plus Premium" membership program, which provides over $1,000 in annual value through benefits such as investment account matching, free financial planning sessions, and enhanced rewards on travel and credit card spending. This premium service costs just $10 per month, making it an attractive proposition for SoFi's nearly 12 million members.

However, SoFi's rapid growth and popularity have also raised some valuation concerns. The company's recent price-to-sales ratio of 9 and forward-looking price-to-earnings ratio of 69 are quite steep, especially when compared to traditional banks like Bank of America and JPMorgan Chase, which trade at much lower multiples. This suggests that investors may need to carefully weigh SoFi's potential against its lofty valuation as they consider adding the stock to their portfolios.