Sure, the translated heading is: "SoFi Technologies: An Underrated Star Despite Solid Q2 Results

The stock of SoFi Technologies has shown a downward trend this year. This is surprising as the fintech star has delivered strong results and lost much of its impressive gains of 2023 – which exceeded 100%. For the second quarter of 2024, SoFi presented excellent figures. The company surpassed its own forecast and Wall Street's expectations. Adjusted revenue rose 22% year-over-year to a record high of $597 million, while net profit was $17 million. In addition, SoFi gained 643,000 new members, bringing the total to 8.8 million, as well as nearly 100,000 new products, totaling now 12.8 million. Earnings per share (EPS) were $0.01, while analysts expected just above $0. The notable aspect is that all three business segments were profitable on a contribution basis. The performance of the lending business was particularly noteworthy in the second quarter, doing better than in the first quarter when revenue was declining. Lending revenue rose 3% year-over-year, and the number of products grew by 19%. All categories showed strength: loan originations increased by 12% for personal loans, 86% for student loans, and 71% for home loans. The financial services segment stood out, with the number of products increasing by 39% year-over-year and revenue rising by 80%. SoFi has expanded its core lending business to a comprehensive range of financial management services. Along with the technology segment, these non-lending segments grew by 46% per year and are expected to make up a higher percentage of total revenue in the future. Investors are concerned about the pressure in the lending business, but the expansion model largely protects SoFi from interest rate fluctuations. CEO Anthony Noto emphasized that it is a high-growth, capital-light business in which the company is investing its resources. Noto is convinced that the way forward lies in embracing the expansion model, and several significant features were introduced in the second quarter, such as Zelle capabilities for money transfers and a 10% cashback boost for SoFi Plus members. Additionally, the company is further developing its investment tools, resulting in a 58% increase in assets under management compared to the previous year. SoFi introduced alternative assets and mutual funds, which contributed 12% of net inflows. Much of SoFi’s appeal lies in the user-friendliness of its products, and the company added one-click transfers for assets to its investment platform to make moving funds as easy as possible. Management is also convinced that the tech platform business is on its way to becoming the "AWS of financial services." This B2B product impressively expands SoFi's operations. Despite positive results, SoFi's stock has already given back the initial gains following the report. A similar pattern occurred after the first-quarter report. Noto noted that during the analyst conference call, all but one question focused on the lending segment. The market remains heavily focused on the lending business, while Noto is successfully developing the company into a comprehensive financial services app. Even lending improved consistently in the second quarter, although it remains below the previous year's level. The forecast for lending was also raised; initially, it was expected to be 92% to 95% of the 2023 level, now a minimum of 95% is expected – a positive outlook, which, however, was not well-received by the market. The SoFi stock may only significantly rise again when interest rates fall, but the company has enormous long-term potential to disrupt traditional banking. The management’s goal is to become one of the top 10 financial institutions in the U.S., and with this growth, that could indeed be realistic. Those who can handle fluctuations in the short term and are not afraid of some risk should consider adding SoFi to their watchlist. However, before you buy shares of SoFi Technologies, consider this: The analyst team at Motley Fool Stock Advisor has just identified which 10 stocks currently offer the best buying opportunities. SoFi Technologies was not among them. The 10 selected stocks could generate substantial returns in the coming years. Remember, when Nvidia was on this list on April 15, 2005… if you had invested $1,000 back then, you would have $657,306 today! Stock Advisor offers investors a simple success formula, including guidance on building a portfolio, regular updates from analysts, and two new stock recommendations per month. Since 2002, the Stock Advisor has more than quadrupled the S&P 500.*