Think It's Too Late to Buy SoFi? Here's the Biggest Reason There's Still Time.

SoFi (NASDAQ: SOFI) has been one of the hottest stocks in the market recently, with shares up by 137% in the past six months. But there are some good reasons it isn't too late to invest in SoFi.

Many reasons to still love SoFi

There's a lot to like about SoFi. Just to name a few reasons you still may want to invest in SoFi:

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• Momentum is still strong. In the most recent quarter, SoFi's user base grew by 35% year over year.
• SoFi has massive potential in credit cards. None of its three credit cards are particularly unique so far, but its generally affluent customer base creates some interesting possibilities.
• With the incoming Trump administration not in favor of student loan forgiveness, it could create an opportunity for SoFi's student loan refinancing business.
• SoFi just turned profitable about a year ago and expects its EPS to rise substantially over the next few years.
• SoFi's credit quality is improving. Its newer loans are significantly outperforming its older ones in terms of credit losses.
• SoFi has started to emphasize its third-party personal loan origination business, which creates a risk-free stream of high-margin fee income.
• SoFi's bank has grown from $0 to over $24 billion in deposits since 2022. It still could have tons of room to grow, especially considering it doesn't offer CDs or money market accounts yet.

The biggest reason there's still time

SoFi now has nearly enough deposits to fund its entire loan book. However, with interest rates still high, SoFi's average deposit cost is about 4.2%. As the Federal Reserve lowers rates, this figure should come down accordingly. With SoFi's average loan earning 9.35%, a lower deposit cost could lead to excellent margin expansion.

Expectations for Fed rate cuts in 2025 are mild. So now could be a great time to take a closer look before rates fall any further.

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Matt Frankel has positions in SoFi Technologies. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.