Down 20%, Can SoFi Stock Make a Comeback in 2024?
The last few years have been rough for SoFi Technologies (NASDAQ: SOFI) investors. 2024 isn't going much better. The financial technology (fintech) and online banking upstart is down around 20% year to date while the S&P 500 index soars in the U.S. Index holders have appreciated a 60% total return level since SoFi went public while SoFi stock is down around 29%.
However, if you look at SoFi's underlying business, it continues to grow quickly and is finally turning a profit. Does that make the stock a comeback candidate for the rest of 2024?
SoFi has aggressively attracted customers since gaining a banking license a few years back. It offers sky-high yields on its savings accounts -- 4.6% APY as of this writing -- much higher than the big banks in the U.S. This has helped the company grow from slightly over 1 million total customers in the first quarter of 2020 to 8 million in Q1 of 2024. An eightfold increase in just a few years is an astounding growth rate and makes SoFi one of (if not the fastest-growing) online bank in the U.S.
Source Fool.com
