Growth stocks are usually the high-octane fuel for an investment portfolio. A strong portfolio has a mix of stocks, but the makeup of the stocks will be different for any portfolio and directed by the investor’s risk profile. Some investors, especially older ones and people who already have a large portfolio, will lean toward secure stocks and passive income. Investors who are just starting out or want to supercharge their holdings might focus on growth stocks. If that fits your profile, and you’re looking for a bargain growth stock, check out SoFi Technologies (NASDAQ: SOFI).

Partially a growth stock

SoFi is an all-digital bank that’s growing by leaps and bounds. Customer count increased 41% year over year in the second quarter to 8.8 million, and adjusted net revenue increased 22% over last year. It’s also becoming profitable, and with $17 million in net income, this was the third consecutive quarter of positive net income.

Although the lending segment offers its core products, the company has developed two other segments that diversify the total business. That accomplishes a number of things: It brings in new customers, generates higher engagement and revenue, and lowers the risk of having all of its eggs in one basket.

That’s been obvious enough during the past few quarters. Although the lending segment has been largely stagnant, the financial services and tech platform segments have been growing at high rates. The financial services segment is all of the non-lending services like bank accounts and investments. Tech platform is a white-label segment that provides financial services infrastructure for business-to-business clients. Chief Executive Officer Anthony Noto likes to call it the Amazon Web Services (AWS) of the financial sector.

In the second quarter, financial services revenue increased 80% year over year, and the segment was responsible for 91% of new products. Tech platform increased 9% over last year. Together, these segments accounted for 45% of adjusted net revenue in the quarter, up from 38% last year.

The lending segment has been under pressure from high interest rates. Lending revenue increased just 3% year over year in the second quarter, and lending contribution profit was up only 8% to $198 million.

Profits are still picking up in the other segments, but lending is responsible for most of the company’s net income. Financial services contribution profit swung from a $4 million loss last year to positive $55 million this year, and tech platform contribution profit was $31 million.

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Partially a bank stock

The reality is that SoFi won’t be a growth stock forever. Although it’s a fintech stock, and the technology it uses provides an edge compared to traditional banks, at its core it’s a bank stock. Its core products are lending products and financial services, and eventually, SoFi’s business should settle into a similar model as other banks. After all, even the traditional banks all have a digital presence these days; SoFi’s business isn’t markedly different, even though it attracts a certain target market of young professionals.

And certain types of investors, like Warren Buffett love bank stocks. Once SoFi is on solid footing, it should provide the stability of a bank stock.

Why is SoFi stock down?

Investors have been worried about SoFi’s lending segment. As much as the other segments add, lending is still the core business. SoFi stock is down about 67% from its all-time highs.

SoFi stock started to climb early this year as the climate began to look more favorable for interest rate cuts, and it’s up 35% during the past three months. As its other businesses grow and contribute more to the total, and the lending business rebounds with lower interest rates, SoFi stock could be explosive.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jennifer Saibil has positions in SoFi Technologies. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.

1 Magnificent Growth Stock Down 67% to Buy and Hold Forever was originally published by The Motley Fool