10 Best AI Stocks to Buy According to Reddit

4. SoFi Technologies Inc. (NASDAQ:SOFI)

Number of Hedge Fund Holders: 31

SoFi Technologies Inc. (NASDAQ:SOFI) is a fintech company that uses AI to enhance its financial services offerings. It utilizes AI-driven fraud detection systems to protect its platform and its customers, in order to provide secure financial solutions.

The company’s tech platform has been a key driver of its strong Q3 performance. Overall revenue at the company rose by 29.91% to $689.45 million as compared to the year-ago period. The tech platform’s net revenue alone increased by 14% year-over-year to nearly $103 million. This growth was fueled by several factors, including increased adoption of products and services, expanded partnerships, enhanced product offerings, and improved fraud prevention.

A lot of new product sign-ups came from existing members. 32% of new products were opened by existing SoFi Technologies Inc. (NASDAQ:SOFI) members and 20% of new members opened a second product within 30 days. This demonstrates the effectiveness of its one-stop-shop approach. These advancements have not only contributed to revenue growth but have also strengthened SoFi Technologies Inc.’s (NASDAQ:SOFI) position as a leading financial technology company.

Patient Capital Opportunity Equity Strategy stated the following regarding SoFi Technologies, Inc. (NASDAQ:SOFI) in its first quarter 2024 investor letter:

“SoFi Technologies, Inc. (NASDAQ:SOFI) fell in the first quarter despite delivering strong 4Q results and 2024 guidance supported by their non-lending businesses. The company continues to gain share in the digital lending and neo-banking space, consistently growing deposits at $2B a quarter. What differentiates the company is their focus on prime and super-prime customers (average FICO 749). Sofi is early in its life cycle, currently being a small player in a very large total addressable market (TAM). With their strong management team, we believe the company will continue to deliver on their guidance of strong growth and expanding margins.”