I'd like to show how much your stake in SoFi Technologies (SOFI 3.00%) would be worth today if you'd invested in it a decade ago -- because I believe that long-term investing in great companies is arguably the best road to riches. But alas, SoFi is a young company and only started trading on the stock market in early 2021.
So here's how you'd have done if you'd parked $10,000 in it roughly four years ago: Your stake would be worth about $5,029. Oops!
Image source: Getty Images.
As often happens when stocks many people are excited about debut on the market, typically via with initial public offerings (IPOs), excitement drives the stocks up sharply, only to see them fall to earth some months later. (It's often smart to wait for a newly trading company to settle down before investing in it.)
You might be interested to learn more about SoFi Technologies, because it has a lot of promise. It's a digital financial services company -- a "fintech" business -- offering services such as banking, loans, investing, credit cards, mortgage loans, student loan refinancings, insurance, and more. (Whew!) Via its app, it aims to be a one-stop financial stop.
NASDAQ: SOFI
Key Data Points
In short order, SoFi has become the 63rd-largest bank in the U.S. by assets -- and it may well rise much higher in the ranking if it keeps executing well. Per a Motley Fool Research report, some three-quarters of banking customers are likely to switch banks if they find something they like better.
SoFi recently boasted 10 million members -- having more than tripled its membership in just over three years. It has demonstrated an ability to grow -- but it does face some potential headwinds, such as a possible recession. In addition, its stock isn't exactly bargain-priced, with a recent price-to-sales ratio of 4.8. That is lower than the ratio it has been in past years, though, and it's looking like a reasonable entry point for risk-tolerant investors.
