Cathie Wood focuses more on SoFi: A look at the fintech revolution

Cathie Wood is best known for her optimistic forecasts for companies like Tesla and Palantir. However, the prominent investor is currently quietly making waves by steadily increasing her stake in the emerging fintech company SoFi Technologies. In her broad portfolio of exchange-traded funds, SoFi now takes a remarkable fourth place. But Wood is not the only one recognizing positive signs: Dan Dolev, a renowned analyst at Mizuho, recently raised his price target for SoFi to $14 per share, representing a potential 36 percent increase from October 29. SoFi is showing impressive numbers in its current quarterly report, and this in a fiercely competitive financial services sector dominated by big names like Wells Fargo, Bank of America, and JPMorgan Chase. Nevertheless, SoFi and other online pioneers like Robinhood Markets, Coinbase Global, and Block are succeeding in challenging the established banks by offering specialized services in the fields of cryptocurrencies, small loans, and stock trading. SoFi is no exception here and positions itself as a rising star in digital banking. Without physical branches, the company offers an extensive portfolio of services from loans to insurance to banking and investment products – all through its mobile app. The growing acceptance of online banking is playing into SoFi's hands. In the past quarter, the company was able to increase its number of members by an impressive 35 percent to 9.4 million. These members use more than 13.6 million products, highlighting the effectiveness of SoFi's cross-selling strategies. The promising potential for SoFi lies in establishing itself as a comprehensive destination for various financial needs. This is likely to promote more efficient economic units in the long term. In the third quarter, SoFi was able to increase its revenue by 30 percent compared to the previous year to $689 million, with a net profit of more than $60 million – the fourth profitable quarter in a row.