SoFi Technology Shares are Down More Than 10% — What’s Driving The Sell Off?

• Bank of America (BofA) put a $20.50 price target on the stock.
• BofA viewed SoFi’s recent capital raise of $1.5 billion as a "modest positive". 
• Goldman Sachs analyst Michael Ng lowered the firm's price target on SoFi Technologies to $24 from $27.

Shares of SoFi Technology (SOFI) slumped on Tuesday after Bank of America (BofA) said that the firm's capital raises have led to more questions about the potential for acquisitions as it resumed coverage on the stock with an ‘underperform’ rating. 

BofA assigned a $20.50 price target on the stock. The firm told investors that SoFi completed its second capital raise of the 2025 in December, issuing 54.5 million shares for a total of $1.5 billion and viewed the capital raise as a "modest positive" as it provides ammunition to power continued growth, as per TheFly.

The analyst told investors in a note that the company's capital raises have led to more questions about its potential for acquisitions. Any deal is "likely to be smaller and more complementary than game changing," it added. 

Goldman Sachs analyst Michael Ng lowered the firm's price target to $24 from $27. However, it maintained a ‘Neutral’ rating on the shares.

Top Choice Among Retail To Join S&P 500 

SoFi topped the leaderboard of a Stocktwits poll in partnership with Polymarket in the most likely pick for S&P 500 benchmark index inclusion by March. 58% retail traders picked SoFi over MicroStrategy, which was chosen by 27% pollers. 

Since December, news of SoFi’s inclusion in the index has kept investors gripped, as the company’s strong membership growth has been a key driver of its inclusion. 

Earnings Incoming

Sofi is expected to post results for its fourth quarter (Q4) on Jan. 30 with Wall Street expecting the company to post revenue of $985.4 million and a profit of $0.12 per share, according to data from Fiscal.ai.

SoFi in its third quarter (Q3) results reported a net revenue of $950 million, beating analysts’ estimates of $895 million. 

How Did Stocktwits Users React?

Retail sentiment around SOFI trended in ‘extremely bullish’ territory amid ‘extremely high’ message volume.
One user called the stock ‘overpriced’ and other user predicted the stock to go down to $15. 
https://stocktwits.com/BearishCandle/message/640968265

Shares of SoFi have risen 72% in the past one year. 
 

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