SoFi Stock Investors Hope for Turnaround
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: Fool
- Investor Confidence Rising: On June 12, 2026, SoFi stock saw a 3.23% increase in afternoon trading, indicating a growing optimism among investors regarding the company's future performance, which may attract more attention from potential investors.
- Positive Market Reaction: Despite an uncertain overall market environment, the rebound in SoFi's stock price reflects investor confidence in its business model and growth potential, potentially facilitating the company's future financing and expansion plans.
- Video Release Impact: The video published on June 14, 2026, may further drive investor interest in SoFi, especially in the context of the company potentially launching new products or services, enhancing market expectations for its innovation capabilities.
- Optimistic Future Outlook: As investor attention on SoFi stock increases, market analysts may reassess their price targets and ratings, thereby laying the groundwork for future stock price growth for the company.
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Analyst Views on SOFI
Wall Street analysts forecast SOFI stock price to rise
14 Analyst Rating
5 Buy
6 Hold
3 Sell
Hold
Current: 17.420
Low
18.00
Averages
28.31
High
38.00
Current: 17.420
Low
18.00
Averages
28.31
High
38.00
About SOFI
SoFi Technologies, Inc. is a member-centric, one-stop shop for digital financial services. The Company, through its lending and financial services products, allows members to borrow, save, spend, invest and protect their money. The Company's segments include Lending, Technology Platform and Financial Services. The Lending segment offers personal loans, student loans, home loans and related servicing to help its members with a variety of financial needs. Its platform supports the full transaction lifecycle, including credit application, underwriting, approval, funding and servicing. The Technology Platform segment provides services through a diversified suite of offerings which include an event and authorization platform accessed via application programming interfaces, a cloud-native digital and core banking platform and services related to both platforms. The Financial Services segment offers a suite of financial services solutions, including SoFi Money and SoFi Invest.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Retail Investor Engagement: On its first trading day, retail investors purchased $18 million worth of SpaceX stock within the first 20 minutes, totaling $118 million by the end of the day, indicating robust enthusiasm and demand from the retail market for this IPO.
- SoFi's Strategic Advantage: As one of the five brokerages for the SpaceX IPO, SoFi offered relatively unconditional access to shares, attracting a significant influx of new customers, with 1.1 million added in the first quarter, showcasing its competitive position in the market.
- Cross-Selling Potential: SoFi's cross-selling rate accelerated to 43% in Q1, and by offering a high-profile IPO, it could enhance engagement with new customers on its platform, driving long-term business growth and product adoption.
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- Rivian Financial Concerns: Cramer expresses concerns over Rivian's financial performance, noting excessive losses and advising caution for investors, which could lead to further declines in stock price.
- SoundHound AI Risks: Cramer gives a very negative assessment of SoundHound AI, labeling it a “meme stock” and recommending selling, reflecting high uncertainty in the market regarding such stocks.
See More
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- Price Decline: SpaceX's stock has experienced a 20% pullback post-IPO, with a 6% drop on Thursday bringing shares down to $180, indicating a rapid shift in investor sentiment that has significantly eroded retail investors' gains.
- Volume Analysis: The five-day volume-weighted average price (VWAP) for SpaceX stands at $179, suggesting that the average post-IPO buyer is now nearly breaking even, reflecting a reassessment of the stock's value in the market.
- Market Value Fluctuation: After briefly pushing SpaceX's market capitalization close to $3 trillion on its debut, the sharp decline in stock price has led investors to question whether the rapid increase can be justified by underlying fundamentals, impacting overall market confidence.
- Retail Investor Impact: Although many retail investors accessed the IPO through platforms like Robinhood, Fidelity, and SoFi, the limited allocation of shares means that many are now facing reduced profits, highlighting the uncertainty in the current market environment.
See More
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- Market Challenges for PayPal: PayPal's stock has fallen 32% over the past three years, and despite having 439 million active accounts, it faces fierce competition from companies like Apple and Alphabet, leading to declining margins and ineffective user engagement.
- User Growth of SoFi: SoFi's user base has surged from 5.22 million in 2022 to 14.70 million today, nearly tripling, while PayPal only added 3 million active accounts in the past year, translating to a mere 0.6% growth, highlighting SoFi's advantage in attracting younger consumers.
- Profitability Comparison: SoFi trades at nearly 30 times earnings, with an expected annual growth rate of 31% over the next three to five years, compared to PayPal's less than 8 times earnings and a growth rate of only 7% to 8%, indicating SoFi may be more attractive for long-term investors.
- Investment Risk Assessment: While SoFi's business model carries higher risks, including potential loan defaults and interest rate fluctuations, its superior market execution compared to PayPal positions it as a more appealing investment choice in the current competitive landscape.
See More
PayPal's Stagnant Growth vs. SoFi's Rise
- User Growth Comparison: PayPal boasts approximately 439 million active accounts, adding 3 million in the past year, translating to a mere 0.6% growth, indicating stagnation; in contrast, SoFi's user base surged from 5.22 million in 2022 to 14.7 million today, nearly tripling and showcasing strong market appeal.
- Changing Competitive Landscape: With giants like Apple and Alphabet entering the digital wallet space, PayPal faces fierce competition that has led to declining margins, particularly as its white-label payment business has not compensated for the profitability drop in its branded checkout segment, impacting overall financial health.
- Leadership Changes Impact: PayPal hired Intuit's CEO Alex Chriss in 2023 to rejuvenate its branded checkout business but fired him earlier this year; new CEO Enrique Lores will leverage his experience at HP to tackle market challenges, and this frequent leadership turnover may affect the coherence of the company's strategy.
- Investment Risks and Opportunities: While SoFi's valuation approaches 30 times 2026 earnings estimates, posing significant investment risks, its projected average earnings growth of 31% far exceeds PayPal's 7% to 8%, suggesting that SoFi may emerge as a more attractive long-term investment despite inherent loan risks in its business model.
See More
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- Strong Market Performance: The Dow Jones Industrial Average reached a record high on Tuesday, propelling U.S. stock futures higher, with Nasdaq futures up 0.9%, reflecting optimistic sentiment towards the Fed's policy and potentially boosting investor confidence.
- Stock Movements: SpaceX shares surged approximately 50% from the $135 IPO price, briefly surpassing Microsoft and Amazon in market capitalization, highlighting strong market interest in emerging tech companies and their growth potential.
- Economic Data Watch: Investors are tracking retail sales data set to be released at 8:30 AM ET and the Fed's policy statement at 2:00 PM ET, with expectations that these figures will significantly impact market sentiment and investment decisions.
See More
