Is SoFi Stock a Millionaire Maker?

The financial services industry is massive, accounting for a significant portion of GDP

What's more, it's perhaps the oldest industry

The movement of money between rs and borrowers, as well as other ducts related to capital, has always been in demand

And it ly always will be because of how critical this is to our economy

Some well-known heavyweights dominate the industry

However, that doesn't mean newcomers can't challenge the quo

So far, its achievements have been impressive

Image source: SoFi nologies

SoFi's momentum continues This year has been anything but smooth sailing for investors

Besides geopolitical tension, there continue to be macro fears, especially around a possible recession hitting the U

Despite this backdrop, SoFi keeps humming along

The gains continue to be broad-based across the financial services, platform, and lending segments

The industry is packed, as consumers can open bank accounts, brokerage accounts, or get loans from an unlimited number of other options

A experiences growth SoFi only if it's viding a superior experience

With an all-digital format that puts nology at the heart of everything, SoFi makes banking incredibly easy for its customers

These people are choosing to move their money over to SoFi

Not only does this demonstrate the trust that people have in SoFi, but it also vides a low-cost source of funding for the to support loan growth

In other words, banks that struggle to grow their deposits are bably at a disadvantage in the industry

This isn't a blem for SoFi

CEO Anthony Noto thinks that SoFi is just getting started

He sees the company one day becoming a top 10 financial institution in the U

If SoFi gets even remotely close to this ambitious goal, there is a lot for holders to get excited

Patience and conviction As investors, we all want to find that one stock that can generate substantial wealth over the long term

Getting in early on a that grows its revenue and earnings indefinitely while offering ducts and services and building an economic moat is the ideal situation

However, investors must realize that it's not a good idea to put so much emphasis on a single company

Buying and holding a diversified set of stocks is key to success

That being said, SoFi possesses characteristics that could turn holders into millionaires

Of course, it requires patience to hold the stock for decades

And investors must have conviction that SoFi's success will continue well into the future

Given that SoFi is currently a drop in the bucket in the massive financial services industry, there should be an opportunity to expand for quite some time

Competition is always something to think, but so far, SoFi has given investors no reason to be skeptical

The current valuation, with s trading at a price-to-earnings ratio of 38. 7, also doesn't look expensive

That's if you believe, as the management team does, that net income will keep rising briskly in the years ahead

Whether or not that outcome actually happens, the company should still be considered a smart addition to anyone's portfolio

Neil Patel has no position in any of the stocks mentioned

The Motley Fool has no position in any of the stocks mentioned

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