SOFI Stock Hovers Around 200-DMA — A Make-or-Break Test Looms

• JPMorgan upgraded the stock to ‘Overweight’ from ‘Neutral’ and maintained a price target of $31.
• The firm sees the stock’s pullback as a long-awaited buying opportunity.
• The stock declined around 10% since posting strong Q4 numbers and fiscal 2026 earnings expectations.

Shares of SoFi Technologies Inc (SOFI) closed below its 200-day moving average (200-DMA) on Monday for the first time in over nine months, following an unrelenting sell-off that lasted for seven straight sessions.

However, Tuesday’s pre-market gain of more than 4% could be a signal that bulls have not given up yet. Only a consistent close below the long-term average, along with declining price signals that the stock may be commencing a downtrend.

Source: TradingView

Bank Of America Flags Valuation Concerns

The stock has been on a significant downtrend lately. SoFi shares fell nearly 12% last week, marking their worst weekly performance since April 2025. Bank of America flagged valuation concerns, saying the stock appeared stretched. The decline also extended SoFi’s losing streak to a fourth straight week.

On Friday, the company posted adjusted fourth-quarter (Q4) earnings of $0.13 per share on revenue of $1.03 billion, topping estimates of $0.12 per share and $977 million in revenue, respectively. Notably, this was the first time SoFi crossed the $1 billion quarterly revenue mark.

SoFi also added about one million new members, lifting its total 35% year over year to 13.7 million, while product additions climbed 37% to 20.2 million.

JPMorgan Sees Buying Opportunity

On Tuesday, JPMorgan upgraded the stock to ‘Overweight’ from ‘Neutral’ and maintained a price target of $31, according to The Fly. This implies an upside of 40% from Monday’s closing price of $22.08.

Despite a 10% slide after upbeat revenue and 2026 guidance, analyst Reginald Smith sees the pullback as a long-awaited buying opportunity. The momentum in SoFi’s business is “undeniable,” as the company continues to add new members and deposits at a record pace, the brokerage said.

How Did Stocktwits Users React?

Retail sentiment on Stocktwits remained in the ‘extremely bullish’ zone over the past 24 hours, accompanied by ‘extremely high’ message volumes. SOFI was among the top trending tickers on the platform at the time of writing.

One user highlighted a technical indicator and expects the trend reversal to be swift.

Another bullish user said buying between $20 and $25 is a “no-brainer for longs.”

SOFI shares have gained around 47% over the past year, but the latest sell-off has seen the stock decline around 18% so far in 2026.

Read also: Nasdaq, S&P 500 Futures Edge Higher Ahead Of Earnings Rush: Why PLTR, AMZN, TSLA, WULF Are On Traders' Radar Today

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