SoFi Technologies shares have been under heavy selling pressure this year, lagging the broader market even as the company delivered robust financial results. The stock touched $14.70 on Tuesday, its lowest point since June of last year and a 55% drop from its 2025 high.
The decline has cut the company's market value from $39.1 billion to $18.9 billion. More concerning for investors, the price action has formed a technical pattern that often signals additional losses in the near term.
Strong fundamentals, weak stock performance
SoFi, a leading U.S. fintech platform, has seen its shares slide despite reporting impressive numbers. In the second quarter, net revenue surged 40% year-over-year to $1.2 billion, driven by organic demand for its products. The company added 1.1 million new members, bringing its total to 15.8 million, a 35% increase. Product usage also climbed, indicating customer satisfaction.
Adjusted EBITDA reached $358 million, and the company posted its eleventh consecutive quarter of adjusted profitability, with the figure rising to $160 million. SoFi's platform offers a wide range of services, including credit cards, student loans, investment solutions, insurance, and crypto trading.
Recent product launches include SoFiUSD, a stablecoin that has attracted over $349 million in assets, as well as SoFi Coach, SoFi Tech Solutions, and Small Business Loans introduced in the second quarter.
Analysts remain optimistic
Wall Street analysts are largely bullish on SoFi's growth trajectory. The consensus estimate for third-quarter revenue is $1.26 billion, a 32% increase from the prior year. Fourth-quarter revenue is projected at $1.32 billion, up 30% year-over-year. If these forecasts hold, annual revenue would reach $4.8 billion.
Earnings per share are expected to improve from 37 cents to 59 cents for the full year, with potential upside if results beat expectations.
Technical indicators point to further downside
Despite the solid fundamentals, the stock's technical picture is bearish. The daily chart shows a sustained sell-off, with the price breaking below the 61.8% Fibonacci retracement level of $17.85. The formation of an inverted cup-and-handle pattern, currently in its lower phase, typically precedes more declines.
SoFi shares remain below the 50-day moving average and the Supertrend indicator, both of which are bearish signals. The next major support is at the 78.6% retracement level of $13.70, which could be tested if selling pressure persists.
Short interest has risen to 16%, reflecting bearish sentiment. Rising bond yields and a recent short-seller report accusing management of exaggerating returns have added to the pressure.
As the market awaits the upcoming earnings report, the stock's ability to hold the $14.70 support will be crucial. A break below that level could open the door to further losses, while a strong earnings beat might trigger a rebound.
This article is for informational purposes only and does not constitute financial advice.
