SoFi Stock (SOFI) Slides 30% YTD. Here’s Why It’s a Buying Opportunity

SoFi Technologies SOFI -4.48% ▼ is down more than 30% since the start of the year. Despite a blockbuster Q4 that saw the digital financial services provider finally breach the rather impressive $1 billion revenue ceiling, SOFI has spent the first few months of 2026 in a tailspin. I feel we are witnessing a classic “buy the rumor, sell the news” event amplified by macro headwinds. However, the underlying business is doing much better than the market cares to admit. In my view, this disconnect is precisely what makes the recent selloff look increasingly like an opportunity.

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So, my conviction hasn’t wavered an inch. I remain as bullish as ever on SoFi CEO Anthony Noto’s vision.

When Excellence Meets a Cold Market

It is a strange time to be a SoFi shareholder. On paper, the company is firing on all cylinders. They just delivered a record-smashing quarter with $1.01 billion in revenue and a healthy GAAP profit of $0.13 per share. Even more impressive was last week’s bombshell news, when SoFi announced a partnership with Mastercard MA -1.33% ▼ to launch a stablecoin-backed settlement network using SoFiUSD. This will essentially allow 24/7 instant settlement on a public blockchain. Yet the stock has continued its downward slide.

Why the selloff? For starters, the market is currently allergic to anything that smells like “risk-on” fintech. The Federal Reserve’s decision to pause rate cuts in early 2026 sent a chill through the lending sector, and SoFi was caught in the crossfire. There’s also the lingering hangover from the $1.5 billion capital raise late last year, and I think investors are still grumpy about the dilution, even though that cash is fueling the very growth we’re seeing now.

Lately, the “bears” have been whispering about credit quality amid a slowing economy, fearing that SoFi’s personal loan book might show cracks. But looking at their high Fair Isaac Corporation (FICO) member base, I believe those fears are overblown. The market is punishing SoFi for being “too tech” in a world that suddenly wants boring banks, ignoring the fact that SoFi is actually the best of both.

Why the Growth Story Is Just Starting

Now, if you can look past the red on the screen, the medium-term catalysts are genuinely thrilling. One such example is SoFi essentially becoming the Amazon AMZN -1.47% ▼ Web Services (AWS) of fintech through its technology platform, Galileo. While the lending segment provides the bedrock, SoFi’s magic lies in the “Financial Services Productivity Loop.” With roughly one million members added last quarter alone, the strategy is hitting its stride. Every time a member signs up for a SoFi checking account and then adds a smart card or an investment account, the profit margin on that customer increases because the acquisition cost has already been paid.

Looking more toward the medium term, the Mastercard-backed SoFiUSD network could be the sleeper hit. This deal will enable businesses to settle transactions instantly. Therefore, SoFi is moving into the high-margin world of B2B payments and cross-border remittances. Management has guided for 30% membership growth this year, and as the tech platform scales, we are looking at massive operating leverage.

We’re clearly moving from the “can SoFi turn a profit?” phase to the “how big can the profit get?” phase. With adjusted EBITDA margins projected to hit the mid-30% range by the end of this year, the company is finally achieving the economies of scale that bulls have been dreaming about since the Special Purpose Acquisition Company (SPAC) merger days in 2021. For this reason, I believe SoFi is quite attractively priced at today’s share price levels.

Is SoFi Overvalued?

So, let’s talk about the valuation, because this is where the opportunity gets spicy. Yes, the stock has taken a beating year-to-date, but it’s still up about 65% over the last twelve months. At first glance, a multiple of 30x this year’s consensus earnings per share (EPS) of $0.60 might make a value investor uncomfortable. But you actually have to look at the trajectory. The market expects 55% year-over-year growth in EPS for FY26, while also penciling in 35% growth for 2027 and 23% for 2028. To be honest, I believe these figures are conservative.

As the company matures, the market is likely to re-rate SOFI as a high-growth tech platform rather than a cyclical lender. Are there risks? Of course. A deep recession could spike defaults, and regulatory scrutiny on stablecoins is always a moving target. However, I believe SoFi’s national bank charter gives it a massive regulatory moat that most fintechs lack. When you balance a temporary “interest rate pause” against a company snowballing its bottom line, the math starts to look very lopsided in favor of the bulls.

Is SOFI Stock a Buy, Sell, or Hold?

On Wall Street, SoFi Technologies stock has a Holdconsensus rating, based on five Buy, seven Hold, and three Sell ratings. Despite the mixed sentiment, SOFI’s average price target of $25.96 implies about 47% upside potential over the next 12 months, signaling Wall Street indeed sees the stock as undervalued today.

Final thoughts

The current volatility might be a test of stomach, but I certainly don’t believe it is a flaw in SoFi’s strategy. The fintech company is evolving from a student loan refinancer into a global financial infrastructure giant right before our eyes. While the market focuses on short-term macro noise, I’m focused on the $1 billion-and-growing revenue quarters that are becoming the new normal.

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