SoFi Just Helped Everyday Investors Buy Into the Largest IPO Ever. Here's Why It Matters More Than One Hot Deal.

The Space Exploration Technologies initial public offering (IPO) made history last week, raising as much as $85 billion and achieving a $1.8 trillion valuation at the open. That valuation has already increased to $2.5 trillion, and SoFi Technologies (NASDAQ: SOFI) played an important role in getting shares to everyday retail investors.

Retail investors helped the SpaceX stock surge on its first day of trading. According to the Wall Street Journal, they bought $18 million worth of the stock within the first 20 minutes of trading, and by day's end, had bought $118 million.

SoFi's involvement in the SpaceX IPO is more than a one-time stunt or gambit. There are far-reaching consequences that could impact the company positively for years. Here's why.

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IPO access at SoFi

SoFi has touted its retail access to IPOs for years. It has offered shares in several high-profile IPOs, including Rivian, Nu Holdings, Figma, and Cerebras Systems, along with SpaceX and others. It offered access to the only private equity fund that has owned SpaceX since 2024, and it still provides access to other private companies in high demand.

SpaceX CEO Elon Musk made it a priority to allow more retail investors access to the SpaceX IPO, and as much as 30% of shares were earmarked for them, according to reports. The stock was made available through five different brokerages, including SoFi. Only SoFi and Robinhood Markets granted relatively unconditional access. Since the IPO was highly oversubscribed, it's unlikely that many investors received their full requests, though.

SoFi has perhaps the strictest flipping policy. All brokerages discourage selling IPO shares within 30 days of buying, and SoFi will bar a flipper from future IPO access for 180 days, with a second violation resulting in a 365-day ban and a third in a permanent ban. It also reserves the right to charge a $50 fine if an IPO stock is sold within 120 days. That policy encourages customers to hold the stock and stick with the platform.

SoFi's one-stop shop

SoFi's status as one of the five chosen brokerages for SpaceX IPO access could attract new business to its platform, especially since it has relatively few conditions for buying. Onboarding new customers is a major part of the company's growth strategy right now as it builds its brand, and it has reported a record 1.1 million new additions in the first quarter.

The other major element of SoFi's strategy is cross-selling, and offering a high-profile IPO today could have major long-term implications as this group engages with SoFi's platform. It's a low-cost way to bring in new business and get the full flywheel effect as they adopt new products. The cross-selling rate has accelerated to 43% in the first quarter. Product growth continues to outpace member growth, 39% to 35% in the quarter.

I think the market might be missing this crucial fact, as SoFi's stock price has fallen 37% this year, and it's not likely to stay that way for long.

Jennifer Saibil has positions in Nu Holdings, Rivian Automotive, and SoFi Technologies. The Motley Fool has positions in and recommends Figma and Nu Holdings. The Motley Fool has a disclosure policy.