SoFi (SOFI) Stock Plunges Nearly 50% — Is This a Buying Opportunity?

Key Highlights

Table of Contents

SoFi Technologies has declined 47% from its November 2025 peak, now hovering between $18.83 and $19.18
A short-seller report from Muddy Waters Research released March 17 questioned the company’s accounting methods, claims SoFi leadership rejected
Fourth-quarter 2025 performance exceeded projections: earnings per share reached $0.13 versus $0.12 forecast, revenues hit $1.01 billion, marking 39.6% annual growth
The fintech platform welcomed 1 million fresh members during Q4 2025, setting a company milestone
Institutional ownership shows divergence — Zurcher Kantonalbank expanded holdings by 223.6%, while company insiders reduced positions in recent months

SoFi Technologies ($SOFI) has experienced turbulent trading throughout 2026. Shares have plummeted 47% since reaching their November 2025 zenith, currently fluctuating in the upper $18 to $19 territory. This represents a dramatic pullback for a financial technology firm that delivered exceptional growth metrics mere months earlier.

SoFi Technologies, Inc., SOFI

Multiple headwinds have pressured the stock price. General market weakness played a role, but the primary catalyst emerged from a March 17 Muddy Waters Research publication that questioned the integrity of the company’s financial reporting methods.

SoFi’s executive team issued a forceful rebuttal, characterizing the allegations as baseless. Mizuho’s analyst Dan Dolev similarly expressed skepticism regarding the report’s validity. While shares initially tumbled following the publication, a gradual recovery has since taken shape.

Fourth Quarter 2025 Results Surpass Projections

SoFi’s latest quarterly performance, disclosed January 30, demonstrated impressive momentum. Earnings per share reached $0.13, exceeding the consensus estimate of $0.12 by one cent. Total revenue achieved $1.01 billion, surpassing the $984.75 million projection and representing 39.6% annual expansion.

Adjusted net revenue climbed 37% compared to the prior year period. The platform onboarded 1 million new members during the fourth quarter, establishing a new record. Looking ahead to the current fiscal year, Wall Street analysts project earnings per share of $0.60.

Management established Q1 2026 EPS guidance at $0.12 and maintained full-year 2026 EPS expectations at $0.60. First-quarter earnings are scheduled for late April release.

This week, the company unveiled a new Home Equity Line of Credit offering, entirely digital and integrated into the SoFi mobile application. Additionally, management formed a Real Estate Advisory Council, recruiting leading agents from prominent brokerage firms.

Wall Street Perspectives and Ownership Trends

Analyst sentiment on SOFI remains divided. Among 20 equity research analysts tracking the stock, seven maintain Buy ratings, ten recommend Hold positions, and three advise Sell. The consensus price target stands at $24.85.

Price target reductions have become widespread recently. Barclays slashed its outlook from $28 to $18 in early April. Goldman Sachs adjusted downward from $25 to $20. Keefe, Bruyette & Woods reduced expectations to $17 accompanied by an underperform designation. Truist decreased its target to $21.

Conversely, Citizens JMP upgraded the stock to Outperform with a $30 price objective in February.

Institutional ownership patterns reveal conflicting signals. Zurcher Kantonalbank dramatically expanded its SOFI holdings by 223.6% during Q4, purchasing 610,897 additional shares to reach a total position of 884,085 shares valued at approximately $23.15 million. Various smaller investment firms similarly increased allocations.

However, corporate insiders demonstrated net selling activity over the previous 90-day period. They disposed of 208,680 shares valued at roughly $3.9 million while purchasing only 38,900 shares worth $705,000. The company’s Chief Technology Officer liquidated 94,958 shares on March 18 at $17.43 per share.

The stock’s 52-week trading range extends from $11.64 to $32.73. The 200-day moving average rests at $23.80, significantly above current trading levels. The forward price-to-earnings ratio of 24 appears more reasonable compared to the trailing P/E near 50.

The upcoming Q1 2026 earnings report, expected in late April, represents the next significant catalyst for the stock.

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