SoFi Could Become 'American Express Of Fintech': Analyst

SoFi Technologies, Inc. SOFI released better-than-expected quarterly results on Tuesday and analysts from JPMorgan are weighing in on the company and its first-quarter report. 

What To Know: SoFi saw its adjusted revenue rise 33% in the first quarter, and financial services revenue increased by 101% year-over-year, along with record originations and member adds of 800,000. 

JPMorgan analyst Reginald L. Smith said the firm is "encouraged" by SoFi's momentum, although current macroeconomic conditions remain a "wildcard of sorts." 

Read Next: SoFi Brings Crypto Back After Trump Policy Changes 

The analyst highlighted SoFi management's positive commentary about improving credit trends and strong  loan buyer demand. Smith pointed to a decline in Tech Platform accounts following the loss of a large client as "the only blemish on an otherwise strong quarter."

SoFi CEO Anthony Noto told CNBC that the company will bring back cryptocurrency investing later this year following a shift in the regulatory landscape under the Trump administration. The JPMorgan analyst also noted management "leaning in" on 2025 as a year of investment in long-term growth drivers on the earnings call. 

"​​We like SOFI's positioning and go-to-market strategy (to be the full-service bank for highly educated, digitally inclined consumers) and think the company will ultimately be a winner in the neo/digital bank space and could eventually become the ‘American Express’ of fintech," Smith said. 

JPMorgan reiterated its Neutral rating and $16 price target on SoFi stock.

Stock Price Action: According to data from Benzinga Pro, SoFi shares are up more than 5% over the past five days.

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