SoFi Technologies, Inc. (NASDAQ: SOFI) received a cautious but ultimately positive endorsement from CNBC’s Jim Cramer during a recent episode of Mad Money.
When a caller asked about the fintech company, Cramer responded directly, saying: “Well, you know, it’s a financial tech. It’s a bank, but let’s put it this way: It’s doing as well as it can, but it has a very high price-to-earnings multiple versus the others in its cohort.”
Cramer acknowledged the valuation challenge but stopped short of advising investors to sell, offering a measured long-term view on the stock.
“So, it’s going to mark time until the earnings continue to go up. I do like the company. I like the management. I wouldn’t mind you owning it for the long term,” he added.
SoFi has delivered strong financial results in recent quarters, reporting record second-quarter adjusted net revenue of $1.2 billion, representing a 40% increase year over year.
GAAP net income for the same period rose 61% to $156.6 million, while adjusted EBITDA climbed 44% to reach $358 million, reflecting meaningful operational momentum.
Loan originations hit a record $14.8 billion during the quarter, and total membership grew 35% to 15.8 million, with deposits reaching $45.5 billion across the platform.
At a Goldman Sachs conference on September 8, CFO Chris Lapointe noted that SoFi had outpaced the Rule of 40 for 20 consecutive quarters, underscoring consistent execution across both revenue and profitability metrics.
The company also raised its full-year 2026 adjusted net revenue outlook to a range of $4.75 billion to $4.85 billion, though it kept its adjusted EPS guidance unchanged at $0.60.
Despite the strong operating performance, valuation remains a central concern for investors and analysts evaluating the stock at current levels.
Yahoo Finance data shows SoFi trading at a trailing price-to-earnings ratio of 35.12 and a forward P/E of 21.51, a notable premium compared to traditional banking peers in its competitive set.
Credit exposure is another factor that warrants monitoring, as total net charge-offs for the six months ended June 30 rose to $406.1 million, up $77.2 million from the prior-year period.
The total net charge-off ratio did improve, declining to 1.91% from 2.24%, though higher personal-loan and student-loan charge-offs reflected growth in average loan balances across the portfolio.
Hedge fund interest in SoFi has also softened slightly, with Insider Monkey data showing 44 hedge funds holding the stock in the second quarter, down from 47 in the first quarter.
Short interest in the stock remains elevated, sitting at approximately 14% to 15% of the float, suggesting a meaningful portion of the market retains a skeptical view of the current valuation.
SoFi’s ability to sustain earnings growth at a pace that justifies its premium multiple will be the defining factor in whether Cramer’s long-term conviction ultimately proves well-founded.
