SoFi Technologies And 2 Blockchain Stocks To Watch

Energy driven inflation is keeping central banks cautious on interest rates, which keeps attention on assets that move to different rhythms than traditional stocks and bonds. That is where companies linked to cryptocurrencies and blockchain technology become interesting. This article walks through three stocks from our curated crypto and blockchain shortlist, explaining what each business does and why some investors are watching them now.

The stocks covered below are a small sample of what crypto and blockchain investors are watching, and the full screen surfaced 18 more companies with equally detailed stories that are not featured in this article. If you want to identify and analyze those additional opportunities with more control, head straight into the Top Cryptocurrency and Blockchain Stocks screener

SoFi Technologies (SOFI)

SoFi Technologies is a San Francisco based fintech that offers an all in one app for borrowing, saving, spending and investing, with SoFi Crypto inside the SoFi Invest platform giving members direct access to digital assets. Most of its revenue still comes from traditional activities, led by the Lending segment at about US$2.4b, followed by Financial Services at about US$1.7b and the Technology Platform at about US$400 million. Crypto remains one part of a broader business mix rather than the main revenue driver. The stock is a large cap at about US$23.9b.

Investors watching the crypto and blockchain space are paying attention to SoFi Technologies because it embeds SoFi Crypto, a dedicated trading platform, inside a fast growing personal finance app and a banking software business that services other institutions. The recent push into SoFiUSD stablecoin and a liquidity partnership with Kraken hints at a bigger role in digital payments and institutional settlement, while the company still faces questions on earnings quality, funding structure and whether its premium valuation matches execution. If you care about how traditional finance and crypto rails could converge inside one listed company, SoFi is a story worth following more closely.

SoFi’s push into SoFiUSD and its crypto rails inside a US$23.9b fintech bank app could be masking a much bigger shift in how the business makes money. Get the full context in the 2 key rewards and 1 important major warning sign

Oracle (ORCL)

Oracle is a global software and cloud infrastructure company best known for its databases and business applications, and it also runs Oracle Blockchain Platform, an enterprise blockchain service inside Oracle Cloud Infrastructure that lets companies build permissioned networks and smart contracts. Most of its revenue comes from Cloud and software at about US$58.5b, with smaller contributions from Services at about US$5.7b and Hardware at about US$3.1b, so blockchain is one niche product within a much larger cloud stack. Oracle is a mega cap stock at roughly US$443.7b.

For crypto and blockchain focused investors, Oracle offers something different from pure token plays. Oracle Blockchain Platform gives enterprises a way to run permissioned chains on the same cloud that already hosts their databases and AI workloads, which can create a sticky, full stack relationship if those systems are adopted together. At the same time, the company carries high debt, relies heavily on external borrowing and has a relatively new management team, so the scale of its AI and data center commitments is a genuine risk if demand or funding conditions change. The stock has been described as trading at a discount to some fair value estimates, with earnings momentum that some analysts consider solid. For investors who want blockchain exposure inside a large cloud provider rather than a smaller specialist, Oracle is a company that may be worth understanding in more detail.

Oracle’s significant cloud and AI commitments can appear to be a straightforward scale story, but the real puzzle is how its balance sheet and blockchain bets fit together. Read the 4 key rewards and 2 important warning signs (1 is major!)

Applied Digital (APLD)

Applied Digital is a Dallas based operator of high performance computing infrastructure, running data centers for AI, machine learning and crypto mining customers. Its largest revenue stream is the HPC Hosting segment at about US$385 million, with the Data Center Hosting segment, which includes energized infrastructure services for cryptocurrency miners, contributing around US$154 million, so crypto is an important but not dominant piece of the business mix. The stock is a mid cap with a market value of roughly US$7.6b.

Applied Digital interests crypto focused investors because it bridges two themes: dedicated infrastructure for cryptocurrency miners, and long duration AI and HPC data center leases. The company has secured 15 year contracts with large hyperscaler clients that aim to lock in billions of dollars of revenue, while still carrying clear pressure points such as heavy use of debt, short cash runway and reliance on a small group of big customers. If you want to understand how much of that long term opportunity compensates for the funding and concentration risks, Applied Digital is a story that may merit a closer look before making any decisions.

Applied Digital’s long dated AI and HPC contracts could be masking a very different risk return profile for its crypto hosting business. Compare that tension in the 1 key reward and 3 important warning signs (1 is major!)

Seeking Alternatives Beyond Crypto Plays

Fresh stock ideas can move from quiet to flying once momentum builds. Use these shortlists while they are still under the radar for now.

• Consider resilient cash generators before the crowd starts chasing yield by scanning the 11 dividend fortresses that focus on reliability and balance sheet strength.
• Identify early movers in automation and industrial efficiency by reviewing the curated 36 robotics and automation stocks that highlight companies building real world robotics solutions.
• Monitor potential breakout stories in underfollowed sectors by tracking the curated 19 high quality undiscovered gems that filter for quality fundamentals and quieter market attention.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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