SoFi Technologies (SOFI) shares are slipping today, even after the fintech company posted its first-ever billion-dollar quarter and issued impressive guidance for 2026. At the time of writing, SOFI is hovering around its 200-day moving average (MA) at the $22.69 level. A decisive break below this price may accelerate downward momentum in the near-term.
Versus its November high, SoFi stock is now down nearly 30%.
Investors are bailing on SOFI shares despite a blockbuster quarterly release mostly on lingering dilution concerns from the company’s enormous $1.5 billion capital raise this month.
According to its chief executive, Anthony Noto, however, the recently executed share sale actually positions SoFi Technologies for long-term dominance in the fintech space.
Speaking this morning with CNBC, Noto revealed the offering was “immediately accretive to our tangible book value,” adding another $2 a share to the fintech’s equity base. SOFI will use that capital to grow faster through product roll-outs and strategic deals that bolster its footing against rivals — potentially creating shareholder value over time, he concluded.
Long-term investors should consider buying SoFi stock on the post-earnings dip also because it’s uniquely positioned to benefit from two supercycles: blockchain and artificial intelligence (AI).
The San Francisco-headquartered firm is using AI to boost underwriting efficiency, and its crypto offerings are bringing new members to the platform. SOFI added a record 1 million new members in Q4.
Moreover, while the firm’s forward price-to-earnings (P/E) ratio at north of 40x appears stretched, relative to its earnings growth (160% year-over-year in Q4), it may actually be a bargain for longer-term investors.
Note that SOFI’s relative strength index (14-day) currently sits at about 30, indicating the bearish momentum is now near exhaustion.
Wall Street analysts also seem to agree that the ongoing weakness in SoFi Technologies is a little overdone.
