By Emily Dattilo

Fintech stocks had a good year overall, but SoFi Technologies had the best one.

According to Dow Jones Market Data, SoFi stock gained 57% this year, while PayPal rose 39%, Affirm Holdings increased 27%, and Block was up 13%.

SoFi began as a lender focused on refinancing debt but now operates through three segments: lending, which includes student, personal, and home loans; financial services; and a technology platform. Here are some highlights of an eventful year for the company.

SoFi started the year strong in January, posting its first quarterly profit and high volumes for its lending segment. In March, it announced plans to offer $750 million of convertible notes due in 2029.

In April, a disappointing forecast for second-quarter revenue overshadowed a strong first-quarter report. "We've hit a key inflection point as a company where the benefits of a diversified strategy are allowing us to drive responsible growth in an uncertain economic climate, " CEO Anthony Noto told Barron's at the time.

In July, SoFi reported second-quarter earnings per share of a penny, beating Wall Street's call for break-even results, according to FactSet. Adjusted net revenue of $597 million was above the consensus call for $565 million.

In October, SoFi announced a $2 billion pact for personal loans with funds managed by affiliates of the investment manager Fortress Investment Group. "Details in the release were fairly limited, but we view the announcement positively as it potentially demonstrates improving investor demand for SOFI's paper," Keefe, Bruyette & Woods analysts Timothy Switzer and Emily Lee wrote at the time. They rate shares at Market Perform with a price target of $7.

In the same month, SoFi notched its fourth straight quarter of profitability under generally accepted accounting principles. Earnings were higher than expected.

In November, shares traded higher as Donald Trump won the presidency, raising hopes for a less restrictive regulatory environment.

That seems to bode well for 2025, but earlier this month, BofA Securities downgraded the stock to Underperform from Neutral. It maintained a target for the price of $12, arguing that stock is too expensive.

"SOFI's recent execution has been solid and we expect the student loan refinance business to benefit from less generous loan forgiveness policies in a Trump administration," BofA wrote. "That said, after the rally, we believe valuation is ahead of fundamentals and SOFI is priced to perfection."

SoFi is a highly debated stock on Wall Street, but there is no room for dispute that it was a winner in 2024.

Write to Emily Dattilo at emily.dattilo@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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December 31, 2024 12:53 ET (17:53 GMT)

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