• The company has nearly doubled its share price to $27.77 this year and has achieved a market capitalization of over $35 billion. 
• SoFi on Thursday said it was initiating a new public offering of about 54.5 million shares of its common stock for $27.50 per share, for total gross proceeds of approximately $1.5 billion.
• A Wall Street analyst noted earlier this week that SoFi was among the companies likely to be added to the S & P 500 this month.

When SoFi Technologies Inc. went public more than three years ago, it was a rough debut for the fintech startup, which immediately came under pressure from several fronts - a higher-rate environment, weak forecasts, and the federal government under Joe Biden repeatedly extending the student-loan payment moratorium. Fast forward to 2025, and you can bet several investors are banging their heads for not holding on to the stock or buying every dip.

SoFi's stock has had a year of mostly ups, not downs, even when the macro environment has not favoured many companies. From everything in the Trump Administration's "One Big Beautiful Bill" Act (OBBBA) to the recent reported news regarding a possible inclusion in the S & P 500 Index, SoFi has a lot to cheer about.

The company has nearly doubled its share price to $27.77 this year and has achieved a market capitalization of $35.1 billion. The year saw revenue and profit increase sequentially through the latest third-quarter results, underscoring that demand for SoFi's offerings remains robust.

Trump's OBBBA passed through the Senate on July 1, wherein it restricts federal borrowing for graduate and professional students. That is expected to drive more people to turn to private loans and boost the portfolios of companies such as SoFi.

According to Investing, JPMorgan estimates that a 10 percentage-point increase in SoFi's market share from the OBBBA could drive an additional $1.4 billion in student loan origination volume, potentially yielding up to $70 million in incremental annual origination fees and $200 million in gross interest income.

The shares have since then rallied about 68% to hit $29.60 as of Thursday's close.

SoFi's Year In A Nutshell

The year kicked off with SoFi and PGIM Fixed Income announcing a $525 million securitization agreement, signaling continued demand for personal loans. Followed by SoFi's largest Loan Platform Business agreement, wherein the company finalized $5 billion contract for personal loans with funds managed by Blue Owl Capital.

One of the biggest expansions for SoFi this year that led to Wall Street and investor cheer was its plan to give expanded access to alternative investments to include new private market funds from asset management firms, including Cashmere, Fundrise and Liberty Street Advisors.

SoFi said that through these funds, investors can gain exposure to multiple private companies across AI, machine learning, space technology, such as OpenAI, SpaceX, Graza, Epic Games, and more.

In July, SoFi announced the public offering of about 72 million shares of its common stock at $20.85 per share, with total gross proceeds of approximately $1.5 billion. Building on that, SoFi on Thursday said it was announcing a new public offering of about 54.5 million shares of its common stock at $27.50 per share, for total gross proceeds of approximately $1.5 billion.

Last month, SoFi said it was looking to offer crypto services directly to retail customers and would become the first nationally chartered U.S. bank to do so. The new SoFi Crypto platform allows users to buy, sell, and hold cryptocurrencies such as Bitcoin, Ethereum, and Solana, SoFi said.

A bullish user on Stocktwits noted that while share dilution might not be a good thing, SoFi's move is about more expansion, not survival, given that their ROC [return on capital] record is good.

The S & P 500 Inclusion Buzz

Barron's earlier this week noted that SoFi was among the companies that could be likely added to the S & P 500 this month, as the benchmark index undergoes its quarterly rebalancing. The index changes are based on a company's outstanding shares.

The news of the inclusion is expected to land later on Friday. With investors and analysts viewing SoFi's membership growth as an essential driver, the company could be part of the S & P 500 Index.

According to TipRanks, Truist Securities analyst Matthew Coad has a 'Hold' rating on SoFi as of Thursday. Coad pointed to the company's growing bank arm and rising customer numbers as key strengths. He noted that SoFi checks all the boxes to be included in the S & P 500 Index and could join if the committee gives the green light.

Public Offering: An Opportunity To Buy?

The public offering announced on Thursday is expected to close on Dec. 8. The company said the proceeds from the offering will be used for general corporate purposes, including, but not limited to, enhancing the capital position.

However, SoFi's shares fell over 6% following the news during after-market trading on Thursday. Some users on X and Stocktwits opined that the dip following the public offering is a buying opportunity for those seeking an entry point into SoFi shares, and speculated a run similar to Palantir's and Robinhood's if included in the S & P 500.

SoFi's Comeback After A Dreadful IPO

In 2022, the year SoFi went public, the stock fell more than 70%. Since then, however, the shares have staged a strong rebound, with 2023 marking the company's best year - a 115% surge in its stock price. SoFi's stock has now jumped sixfold from its December 2022 close and is on track for a third straight year of gains. It has also outperformed peer PayPal, which is down nearly 28% this year, though it still trails Robinhood's 268% year-to-date rally.

Retail Interest Growing In SoFi

According to Stocktwits data, the number of watchers of SoFi stock over the last year jumped to 21.2%. The retail user message count on the stock also jumped a whopping 60.4% over the past year.

Retail sentiment on SoFi jumped to 'bullish' from the 'bearish' territory compared to a day ago, with message volumes currently at 'high' levels, according to data from Stocktwits.

A user on Stocktwits said that they were waiting for a decent dip and the offering might be that chance.

Shares of SoFi have gained 85% in the last 12 months.

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