U.S. President Joe Biden will decide whether to cancel any further student debt. He has already canceled $400 billion of student loans; therefore, there is hope that further relief is around the corner. In addition, U.S. Secretary of Education Miguel Cardona said the government could extend the student loan payment pause beyond Aug. 31. Both of these initiatives are putting pressure on SoFi Technologies (NASDAQ:SOFI) stock, down more than 65% in the year thus far.

In addition, inflation continues to hammer the local economy. The Federal Reserve will keep trying and they have seven interest rate hikes planned to help rein in the highest inflation in 40 years. But until things normalize, growth stocks will remain under pressure.

Student loan originations were once the gem of SoFi’s portfolio. In 2018 and 2019, student loans constituted more than half of total originations. SoFi does not have detailed data from before 2019, so we don’t have a clear trend. However, there is data that shows student loans were becoming the biggest piece of SoFi’s lending portfolio before the Covid-19 pandemic.

But since then, the lending company has taken active steps to ensure it has a diversified portfolio. SoFi has grown beyond its origins in student loans. If you look at their performance indicators, you’ll notice that. The revenue and user base continue to grow exponentially, despite the short-term headwinds. Hence, you can afford to ignore the bearish calls and go ahead and invest in SOFI stock.

SoFi Is Looking For Ways to Stay Competitive

SoFi provides various financial products and services, from loans to mortgages. This allows them to reach more customers. The more customers they have, the larger their profits. The higher the profit, the higher company value will be. A few months ago, it shifted from mostly student loans to personal and home loans. This has repaid the company handsomely.

The company had impressive growth with a 49% increase in revenue, which was far better than expected. Losses per share came ahead of the estimated 14 cent net loss and narrowed to only $110 million in the first quarter of this year, which is much improved from a $177.5 million net loss last year in the same period.

Based on the results, it is evident that customers are investing in company products. The company has seen 408,000 new members and 689,000 more products have been added to its line.

Second, they introduced a range of new financial products to members. This means that you can get everything you could need from a single organization. It is also moving forward with plans to acquire other companies in the industry.

SoFi acquired the Galileo payment processing platform in 2020. This platform allows SoFi to take financial offerings beyond loans, as you can now power other companies’ cards and ACH payments via its APIs.

Technisys adds another strategic advantage, which aids SoFi in its goal of becoming a one-stop shop for all your financial needs. Technisys’ new technology also complements Galileo’s services.

Keep an Eye on the Reverse Stock Split

It seems there is a different investment theme every year. To be clear, special purpose acquisition companies have been around for decades, but in 2020 it became all about them. They function as vehicles to bring companies public and we’ll see how they continue to spread through the years. Last year, it was all about electric vehicle stocks.

This year, big tech stocks have been gravitating toward reverse stock splits.

There are two types of stock splits: pro-rata and reverse. A pro-rata stock split is when the company divides its stocks into more shares, while a reverse stock split is when they reduce the number of shares to increase their value.

Reverse stock splits don’t change anything about what shareholders own or the company’s overall market capitalization. However, it allows retail investors to purchase top tech stocks at a more affordable price.

SoFi is also thinking about following in the footsteps of many of its tech contemporaries. A filing mentions that any form of the reverse split could lead to a reduction in the outstanding number of shares by a ratio ranging from one-to-two to one-to-10. It is something to keep an eye on since it will lead to a great short-term pop if it comes to pass.

SoFi Stock Is Trading at a Bargain Bin Price

Trading at discount prices, SoFi is a great investment opportunity for those looking for some good returns in the future.

The student loan moratorium is a temporary measure that will not last for long. To alleviate the burden of the student debt crisis, the federal government has allowed financing agencies to pause making loans. This decision will not fix the problem. At some point, normal service will resume and tens of billions of dollars in student loans will continue to be issued yearly.

However, SoFi has taken proactive steps to ensure its diversified portfolio. SoFi’s aggressive approach to implementing artificial intelligence has helped them avoid the risks faced by other companies. The pros, therefore, outweigh the cons when investing in SoFi stock.

On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.