:max_bytes(150000):strip_icc()/GettyImages-2248645263-6dfa97cdd3e144a4ac0fc640be0d250a.jpg "Investors Have Bid SoFi Stock Up All Year. Now They’re Backing Off")
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Key Takeaways
- SoFI’s stock is down Friday afternoon after announcing a share sale.
- The company’s stock is still riding high after beating analysts earnings expectations for seven of the last eight quarters.
SoFi’s been on a winning streak. Today’s it’s taking a breather.
Shares of SoFi Technologies (SOFI), a fintech-turned-bank, are taking a hit after a $1.5 billion share sale announcement on Thursday caught investors and analysts off guard. The most recent capital raise was its second in six months. Still, its stock remains aloft, nearly doubling so far this year.
The company has been riding high on its achievements over the last two years, with seven of its last eight quarterly reports beating analyst earnings expectations, according to Visible Alpha. And the company plans to invest in its existing businesses, relaunch crypto trading, and expand its product offerings—good reasons to have cash on hand.
WHY THIS MATTERS TO YOU
SoFi plans to expand its offerings in the coming year. That could boost its stck, but the shares have rallied for much of 2025, sitting near all-time highs, and have recently slid after the company announced a share sale to raise capital. Some analysts believe the fintech could qualify for S&P 500 membership, which could also give the shares a lift.
SoFi’s second capital raise in two quarters wasn’t widely expected. Keefe, Bruyette & Woods analyst Tim Switzer said in a recent note that he was “a little surprised” since the latest share sale followed another of the same amount in July. That said, the firm’s capital levels are low compared to bank peers, according to Switzer.
“We believe the raise is largely opportunistic given the stock is near all-time highs,” Switzer wrote yesterday.
The company priced the shares at $27.50 apiece, just a touch below their November all-time high of around $32. Visible Alpha’s Street consensus target is just under $26, perhaps an indication that the company managed a good price—though the Street’s outlook on the shares, based on ratings, is broadly neutral. The shares closed 6% lower, at $27.78.
SoFi started out as a fintech company primarily offering student loan refinancing, but has since transformed into a full-service bank offering bank accounts, personal loans and investment products. It also relaunched a crypto trading platform last month after pausing that service in 2023 as it was securing its national bank charter. SoFi plans to launch its own branded stablecoin next year, according to the company.
“There’s more happening at SoFi today than at any other time in my eight years with the company,” SoFi’s chief Anthony Noto said in its third-quarter earnings call late October.
SoFi announced a share sale set to close on Dec. 8. An earlier version of this article incorrectly said the sale had already taken place. This article has also been updated to reflect closing share prices.
