I’ve usually been cautious of characterizing shares as “table pounders,” however final 12 months I listed SoFi Technologies (SOFI) inventory as one after shares fell under $25. However, whereas I made some good strikes in SoFi — each on the purchase and promote aspect — this one went fairly mistaken. Now, SOFI inventory is languishing under $20 per share.
SOFI inventory is now down 46% from its 52-week excessive of $32.73 and has underperformed badly this 12 months. With that mentioned, let us take a look at SoFi’s forecast and study whether or not the inventory can rise again above the $30 worth stage.
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To start, let’s study why SOFI inventory has been taking place after peaking in November 2025.
First, the inventory was at all times ripe for correction, as its valuations have been a bit stretched final 12 months. Then got here the shock $1.5 billion capital elevate in early December, by which SoFi priced shares at $27.50. That was a low cost to the then-prevailing inventory worth. In hindsight, nonetheless, it was a smart choice. Just as corporations ought to ideally repurchase shares after they seem undervalued, elevating progress capital at elevated valuations makes excellent sense.
SoFi’s selloff may be attributed to the tepid sentiments in the direction of cryptocurrency performs. Notably, SoFi relaunched its cryptocurrency buying and selling enterprise in November after a practically two-year halt, however the timing was removed from excellent. Digital property have regarded weak over the previous couple of months, and the pessimism is mirrored within the worth motion of different cryptocurrency buying and selling performs like Coinbase (COIN) and Robinhood (HOOD).
SoFi did put up a stellar set of numbers for the fourth quarter of 2025, however even that earnings report failed to chop ice with markets, and the inventory plunged regardless of beating estimates. The broader market selloff amid the Iran conflict shouldn’t be serving to issues for SoFi, which is a excessive beta identify and tends to rise or fall greater than the broader markets. There are additionally issues over the corporate’s credit score high quality amid the deteriorating macro atmosphere. More just lately, SoFi missed out on becoming a member of the S&P 500 Index ($SPX) — the world’s hottest index as a substitute added Lumentum (LITE), Vertiv (VRT), Coherent (COHR), and EchoStar (SATS).
Over the final couple of years, SoFi has invariably traded above its imply goal worth, however the current consensus goal worth of $26.88 is roughly 51% larger than present ranges. Sell-side analysts have been apprehensive of SoFi’s valuation, and brokerages give it a consensus “Hold” rating. However, last month, Citizens JMP and JPMorgan both upgraded the stock to an “Outperform” rating while raising their respective price targets to $30 and $31.
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To be sure, the fall in SoFi stock is not totally unwarranted, as there are genuine concerns over credit quality. However, I believe the selloff has gone a bit too far, as SoFi has been diversifying away from the lending business and has doubled down on its capital-light tech platform and financial services business. Moreover, the company has stringent credit standards, and in Q4, the weighted average income of its personal loan borrowers was $158,000 with a weighted average FICO score of 746.
In hindsight, SoFi nearly perfectly timed its capital raise, and the company now has the balance-sheet strength to withstand the current turmoil. SoFi is among the cleanest growth stories out there and added over 1 million new members in Q4, closing the year with 13.7 million members. For context, that figure is more than 20 times its member count at the end of 2018. The growth flywheel is far from over, with the company guiding for the metric to rise by at least 30% this year.
SoFi’s valuations have taken a beating in the selloff, and SOFI stock trades at a forward price-to-earnings (P/E) multiple of 30.2 times, which looks quite attractive considering the 54% and 33% earnings growth the company is expected to witness in 2026 and 2027, respectively.
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While SoFi trades below the levels at which I started buying shares last year, I remain constructive on the stock and have been buying the dip. Of course, SOFI stock could remain volatile in the short term amid the evolving situation in the Middle East, and more downside cannot be ruled out. But I believe the crash is a good opportunity to own this fintech name, particularly for those investors who missed out on the rally in the preceding three years. SoFi has a chance of becoming a $30 stock by the end of next year, and I find its risk-reward quite attractive at these levels.
On the date of publication, Mohit Oberoi had a place in: SOFI. All data and knowledge on this article is solely for informational functions. This article was initially printed on Barchart.com
