SoFi Stock Slumps as Wall Street Slashes Expectations

SoFi ( (SOFI) ) has fallen by -12.42%. Read on to learn why.

SoFi Technologies shares dropped 12.42% over the past week as investors looked past solid headline first-quarter numbers and focused instead on a weaker outlook and shifting business mix. While revenue beat expectations and earnings per share doubled from a year ago, management’s softer guidance and a below-consensus forecast for 2026 unsettled the market, prompting a wave of caution around the stock. The pullback comes despite SoFi still being up over the past month and year, underscoring how quickly sentiment can turn when expectations reset.

A key drag on sentiment was the performance and outlook of SoFi’s technology platform and loan businesses. Tech-product revenue came in softer than hoped, partly because a major customer is completing a previously flagged transition away, creating a larger near-term headwind than many anticipated. At the same time, SoFi chose to keep more loans on its own balance sheet instead of selling them, which analysts say makes economic sense but increases the company’s reliance on capital-intensive lending at a time when investors are already anxious about private credit exposure.

This combination of cautious guidance and a tilt toward lending led to a broad round of analyst price-target cuts from firms including Goldman Sachs, Deutsche Bank, TD Cowen, UBS, Stephens, and others. Many now sit at Hold or Neutral, and even bullish voices such as Needham’s Kyle Peterson trimmed their targets, though some still see sizable upside from current levels. The result is a sharply lower share price in the short term, as the market waits to see whether SoFi can prove that its lending-heavy model remains profitable while reigniting growth in its higher-margin, fee-based technology businesses.