SoFi Stock Logged Its Worst Week Since April As Valuation Debate Overshadowed Earnings

• On Friday, SoFi posted its best quarterly revenue, hitting $1 billion for the first time and surging past analysts’ expectations.
• BofA analyst Mihir Bhatia said that the firm continues to view SoFi's valuation as "stretched relative to peers."
• SoFi added a million new members, bringing its total base to 13.7 million, up 35% year over year.

SoFi Technologies recorded a nearly 12% slide in its shares last week, hitting its worst week since April 2025, even after posting better-than-expected quarterly revenue and growth numbers, with Bank of America noting that the company’s valuation was stretched.

On Friday, SoFi posted its best quarterly revenue, hitting $1 billion for the first time, surging past analysts’ expectations but failing to give investors the optimism to boost confidence in the stock.

SoFi stock closed down more than 6% on Friday, falling for the sixth straight session and recording a fourth consecutive week of losses.

Wall Street View

Bank of America lowered the firm's price target on SoFi to $20 from $20.50, according to TheFly. BofA analyst Mihir Bhatia said that the firm continues to view SoFi's valuation as "stretched relative to peers."

The firm said the company reported “solid” quarterly results, but its 2026 guidance fell below BofA's estimates, though it was better than consensus. SoFi forecast 30% revenue growth during the year, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of about $1.6 billion

William Blair analyst Andrew Jeffrey encouraged investors to buy the stock into the post-earnings rally. "The future of banking is SoFi," Jeffrey said, and called the quarter a "blowout" one.

Earnings In Brief

SoFi on Friday posted its largest quarterly additions of members and products in its history. The company said it added a million new members, bringing its total base to 13.7 million, up 35% year-on-year, while product additions were up 37% from a year ago to 20.2 million.

Credit Card Rate Cap

In January, President Donald Trump said the U.S. would seek to cap credit card interest rates, a move analysts expect to benefit fintech lenders and buy now, pay later (BNPL) providers. Trump said that he was weighing a one-year 10% cap on credit card interest rates, calling current rates of 20% to 30% unreasonably high.

"I would expect a meaningful contraction in credit card lending because the economics of revolving balances wouldn't work. People will still need credit and it would leave a massive gap in the market," CEO Anthony Noto said, according to an interview with Reuters.

The company’s executives, during a post-earnings call, said that with a SoFi Personal Loan, members can refinance absurdly expensive credit card debt held at other institutions

What Is Retail Thinking?

Retail sentiment on SoFi improved to ‘extremely bullish’ from ‘neutral’ a week ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

A bullish user on Stocktwits said that Monday could look like another “buying day.”

Shares of SoFi have gained more than 48% in the last 12 months.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: Retail Traders Are Swarming This Battery Manufacturer Stock After A 3,000% Surge In One Session

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