Overall, economic growth has slowed down over the past year or so, and many businesses are suffering as a result. In fact, some well-established businesses with clear paths to profitability are still growing at annualized rates of 50% or more -- and here are two that look especially promising. In the latest quarter, CrowdStrike's revenue grew 53% year over year despite the challenging economic climate, and while the company isn't consistently profitable yet on its bottom line, it is generating more free cash flow than ever before.
Between rising inflation and interest rates, along with the persistent drumbeat of recession warnings, the gravitational pull was too much for SoFi Technologies stock to handle in 2022. Now, as a seemingly more accommodative Federal Reserve and notable revenue growth spur optimism (or at least, less pessimism), SoFi Technologies could be on a path to recovery in 2023.
Digital bank and one-stop-shop financial services company SoFi (NASDAQ: SOFI) beat analysts' consensus estimates for the fourth quarter. While I do like SoFi's strategy of trying to be the one-stop banking solution for high-income earners, I find the company's high valuation perplexing, given that I don't see it possessing a substantial moat at this time. It has also grown its balance sheet quickly, and now has close to $8 billion of personal loans and $4.6 billion of student loans on its books, as well as $7.3 billion of deposits.