SoFi Technologies (SOFI) Is Up 5.8% After Expanding Access to Private Market Funds Has The Bull Case Changed?

• Earlier this month, SoFi Technologies expanded its alternative investment offerings by adding new private markets funds from asset managers including Cashmere, Fundrise, and Liberty Street Advisors to the SoFi Invest platform, giving its 10.9 million members access to investment opportunities in high-growth private companies across sectors such as AI, space technology, and consumer products.
• This marks a milestone for democratizing alternative investments, notably allowing retail investors a low entry point to previously exclusive funds like The Cashmere Fund, now available for a minimum investment of US$500 via SoFi's platform.
• We'll now explore how the expanded access to these exclusive private market funds could impact SoFi's overall investment narrative.

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SoFi Technologies Investment Narrative Recap

To be a SoFi Technologies shareholder, you need to see long-term value in its drive to make modern financial services and investment products accessible and convenient for a broad audience, especially digital-native consumers. The recent launch of private market funds on SoFi Invest may boost user engagement and reinforce the fee-based revenue stream in the short term, but is unlikely to materially shift the most important near-term catalyst: sustained growth in SoFi’s financial services segment. The key risk, that growing product offerings may not lead to expected adoption rates or cross-selling benefits, remains intact and should not be overlooked amid this expansion.

One especially relevant company development is SoFi’s April 2025 collaboration with BlackRock to relaunch its robo-advisor, integrating alternative assets into member portfolios. This move, together with offering new private funds, demonstrates a focus on expanding SoFi Invest and keeping members engaged, which directly ties in with growth catalysts highlighted by analysts and could help buffer against potential volatility in more traditional lending-based revenue streams.

But on the flip side, investors should be aware that accelerating new product rollouts comes with its own risk, especially if member adoption rates…

Read the full narrative on SoFi Technologies (it's free!)

SoFi Technologies' narrative projects $4.4 billion revenue and $912.2 million earnings by 2028. This requires 16.9% yearly revenue growth and a $450 million earnings increase from $462.2 million today.

Uncover how SoFi Technologies' forecasts yield a $13.70 fair value, a 36% downside to its current price.

Exploring Other Perspectives

Forty-nine members of the Simply Wall St Community estimate SoFi’s fair value between US$5.12 and US$24.93, showing a wide spectrum of expectations. With upcoming product launches and a heavy reliance on fee-based revenue, it's clear that perspectives on SoFi’s future performance can strongly diverge, make sure you compare several viewpoints before making your decisions.

Explore 49 other fair value estimates on SoFi Technologies - why the stock might be worth as much as 17% more than the current price!

Build Your Own SoFi Technologies Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your SoFi Technologies research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free SoFi Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate SoFi Technologies' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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