DeFi & Crypto Trading — Uniswap

How to Find a Rocket Stock Before It Grows by Hundreds of Percent? (Using SoFi as an Example)

In investing, one of the most profitable setups is buying stocks at the Turnaround stage (fundamental reversal).

This is the moment when a previously unprofitable fintech startup finishes its phase of aggressive spending, becomes profitable, and starts generating stable income. The market often lags in reassessing such stocks, creating an excellent entry window.

Let’s analyze 5 key markers of a genuine business turnaround based on SoFi’s report:

1️⃣ Explosive Revenue Growth
The company has proven that its financial "supermarket" ecosystem is rapidly scaling:
• 2020: $751 million
• 2023: $2.91 billion
• 2025: $4.77 billion

In the last quarter (June 2026), revenue reached a record $1.57 billion, showing an acceleration in growth of +39.09% YoY.

2️⃣ Point X – Transition to Stable Net Profit
Here lies the main catalyst for the turnaround:
• In 2023, the company's net loss was -$301 million
• In 2024, the business turned profitable: +$499 million

Over the last 12 months (TTM), net profit reached +$636.26 million, and the quarterly net profit growth YoY was +61.00%!

3️⃣ Specifics of Banking Free Cash Flow (A Trap for Beginners)
SoFi has a negative free cash flow (FCF) figure.

Why is this acceptable? According to accounting rules, issuing loans to customers is recorded as "operating cash outflow."

What should you actually look at? The growth of the loan portfolio, the inflow of deposits, and the net interest margin (NIM), which remains at a high level.

4️⃣ Impeccable Financial Strength
SoFi is turning around not through debt, but through a strong balance sheet:
• Debt-to-Equity = 0.31 (significantly below the risk threshold of 0.5)
• Cash-to-Debt = 1.05: liquid cash on hand ($3.57 billion) fully covers long-term debt ($3.30 billion).

5️⃣ The Main Bullish Signal – CEO Purchases
The CEO of SoFi has formed a massive personal stake through regular market purchases, holding 11.96 million shares. When the CEO is this confident in the business during a turnaround phase – it’s a strong signal for investors.

🎯 Valuation: At the current price of $15.80, the stock is trading exactly at its fair value GF Value ($15.21).

The current P/E ratio is 33.33, but the expected future Forward P/E is only 19.27. For a business with earnings growth rates of 60%+ YoY, a valuation below 20x future earnings is an attractive price point.

SoFi is a classic candidate for the aggressive/growth part of a portfolio. Right now, the price is quite appealing ⌛️ I wrote more about the company in this post.

✅ The excitement surrounding OpenAI's revenue cut of $20 billion has quickly settled, and Treasury yields have not updated their highs for two days – the S&P 500 and gold have returned to growth.

Tomorrow marks the first anniversary of the record crash in cryptocurrency with liquidations totaling $19 billion – October 10, 2025. Those who survived that day hardly felt the bear market in 2026 🕓

Friday's events:

🔸 The U.S. budget deficit for the fiscal year reached $1.993 trillion – 12% higher than in 2025 and the highest since 2021. Expenditures increased to $7.4 trillion, while revenues rose to $5.4 trillion.

🔸 The Central Bank of Russia published a draft of anti-money laundering rules for digital depositories – they are required to reject cryptocurrency transfers lacking information about the participants in the transaction ⚠️

🔸 Moderna returned to the Nasdaq-100 index, with shares rising by 9% and 596% since the beginning of the year.

🔸 SpaceX acquired a license for radio frequencies and mobile internet for $8 billion.

🔸 UBS maintained its Buy rating and price target of $300 for Nvidia (current price $229), citing an increase in exports of data processing equipment from Taiwan.

🔸 Anthropic launched the Cyber Mission initiative for cybersecurity to protect critical infrastructure.

🔸 The U.S. may seize around $1 billion in cryptocurrency linked to Iran this week, according to Treasury Secretary Bessent 🕛

🔸 Apple reduced orders for iPhone 18 Pro and Pro Max components by 15–20% for October due to low demand. Shares fell by 2%.

🔸 Wallet manufacturer Ledger is investigating the theft of funds from users in Southeast Asia – losses are estimated at $86 million.

🔷 Exchange Rates:

✊ Bitcoin – $82,704 (↑1.81%)
🤌 S&P 500 – 7,807 (↑0.54%)
🦶 USD/RUB – 85.86 (↑0.99%)
💪 USD/UAH – 44.91 (↓0.06%)
🥇 Gold – $4,186 (↑1.28%)
🙆‍♂️ Oil Brent – $104.17 (↑0.05%)

📞 The possibility of a phone conversation between Putin and Trump today cannot be ruled out, according to Peskov.

⚠️ US mortgage rates have reached a new peak, climbing for the seventh consecutive week. The average rate for a 30-year fixed loan rose to 7.4%, the highest since November 2023, according to Freddie Mac. This marks an increase from 7.28% the previous week and 6.3% a year ago. Bessent suggests the situation is expected to normalize soon.

⚠️🇺🇸 #NVDA = -3%

Firmus Grid, supported by Nvidia, postpones its IPO. Bloomberg reported today about weak investor demand, suggesting this could be an early warning signal for the AI boom as investors grow increasingly doubtful. Read more.

🇷🇺 In September, retail investors supported the bond market, according to Russia's Central Bank, which noted an increase in bond defaults. Individual investors reduced net purchases of Russian stocks more than fourfold. Net currency purchases by individuals increased 22.8% to 91.5 billion rubles in September. Interest in cryptocurrency futures remains low. For more details, see the Central Bank's review.

🇺🇸 Apple has officially announced a presentation for new Smart Home products scheduled for October 13.

⬆️🇺🇸 Chipotle Mexican Grill shares rose by 6% as Starbucks considers a potential acquisition of the company, according to a report from the Financial Times. Meanwhile, shares of Starbucks fell by 4% amid the speculation surrounding the potential deal.