1 Reason Now Is a Great Time to Buy SoFi Technologies Stock

SoFi Technologies (NASDAQ: SOFI) shares have had a dreadful year. As of Sept. 28, the online bank's stock is trading down 39% so far in 2026 and are 50% off its peak. This downturn has occurred even though the business has performed well.

If you've had your eye on SoFi as a long-term investment, it's worth taking a closer look. Here's one reason now is a great time to buy this fintech stock.

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With SoFi, it's all about growth right now

The most exciting part of SoFi is its impressive growth. Its numbers resemble an early-stage technology business more than a bank. Adjusted net revenue rose by 41% year over year in the last quarter. And adjusted net income was up 65%.

SoFi's exceptional growth trajectory is also demonstrated by its expanding deposit base. As of June 30, the business had $45.5 billion in total deposits on its balance sheet. This figure was up an impressive 1,585% compared to the end of Q2 2022. SoFi received its national bank charter in early 2022, enabling it to accept deposits directly. Since then, it hasn't looked back.

In the financial services industry, deposits are a source of competitive strength. They are generally viewed as extremely sticky, as consumers get discouraged when they have to update all their banking information and payment connections. It's also a sign that people trust a particular company with their money.

In SoFi's case, deposits have contributed to loan originations by funding lending opportunities. The business had $47.9 billion in total loans outstanding at the end of the second quarter. That's a notable increase from $32.2 billion 12 months before.

The other side of the coin

Investors love a good growth story. In this case, however, don't ignore the other side of that same coin. SoFi's deposit growth has fueled loan originations. And the lending book has grown rapidly, introducing greater credit risk. Investors have to consider whether the management team has operated with strict discipline.

There isn't anything to worry about just yet. Last quarter, personal loans saw a 2.62% net charge-off rate, an improvement from the previous quarter. And it has trended lower for the past couple of years.

But the possibility of a severe recession is always present. Banking entities and their shareholders have to deal with this reality. Any notable downturn, whether it is driven by rising interest rates, a slowdown in artificial intelligence spending, or geopolitical turmoil, could negatively impact a company like SoFi. Borrowers might start to miss payments, leading to sizable losses on the income statement.

SoFi's growth is the main reason to buy shares today. Investors should, however, understand the other side of the story.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.