Shares of SoFi Technologies Inc (NASDAQ:SOFI) experienced a slight retreat in trading on Tuesday afternoon, falling modestly after a recent surge in volatility over the previous two weeks. This decline came despite the absence of fresh news directly related to the company, leaving investors to digest the broader industry context and recent disclosures.
On January 31, SoFi released its fourth-quarter results which surpassed analysts’ expectations. The fintech posted adjusted earnings of 13 cents per share, inching past the consensus estimate of 12 cents. Alongside this earnings beat, revenue demonstrated strong growth, climbing approximately $274 million year-over-year.
Management accompanied these results with a forward-looking forecast extending to 2026. The guidance set a target of roughly 30% growth in adjusted net revenue, alongside an ambitious goal for adjusted EBITDA margins near 34%. Moreover, the company projected adjusted earnings per share of approximately 60 cents by 2026. This optimistic outlook initially propelled the stock to notable gains. However, after this spike, profit-taking activities led the shares to relinquish a significant portion of their post-earnings advance.
Following the earnings report, market sentiment from major Wall Street firms grew increasingly constructive towards the stock. JPMorgan Chase responded with a rating upgrade to Overweight and set a price target at $31. Their analysis underscored the undeniable momentum in SoFi’s business, citing record-breaking rates of new member sign-ups and deposit growth. This bolstered the firm’s EPS estimates for the years 2026 and 2027.
Similarly, Citizens Financial Group issued an Outperform rating with a $30 price target. The bank highlighted several positive indicators, including a robust 35% year-over-year increase in membership, a consistent streak of nine quarters of GAAP profitability, and over $3 billion raised in incremental capital. Such factors reinforce confidence in SoFi’s operational strength and growth trajectory.
Investor focus now shifts toward Robinhood Markets Inc’s (NASDAQ:HOOD) earnings announcement scheduled for after the trading session on Tuesday. Both Robinhood and SoFi cater to digitally savvy retail investors and generate revenue through investment services, cash management products, and cryptocurrency offerings. Performance metrics from Robinhood—such as customer acquisition, trading volumes, and cash balances—are anticipated to provide valuable insights into market dynamics affecting app-based trading platforms and digital banks alike.
A strong earnings report from Robinhood showcasing growth in these areas could validate the positive outlook surrounding SoFi’s investing and banking divisions. Conversely, disappointing metrics from Robinhood might weigh on sentiment across the fintech sector, potentially dampening investor enthusiasm toward SoFi as well despite the latter’s recent positive disclosures.
From a technical analysis perspective, SoFi’s stock currently faces headwinds. It trades approximately 12.4% below its 20-day simple moving average (SMA) and about 21.8% below the 100-day SMA, indicating weakness in the near term. Despite this, the shares have appreciated nearly 40.7% over the past year, keeping them closer to their 52-week highs than their lows, a factor that may appeal to long-term investors looking for growth opportunities.
Additional technical indicators present a mixed picture. The Relative Strength Index (RSI) is at 34.93, illustrating a neutral momentum stance, neither overbought nor oversold. Meanwhile, the Moving Average Convergence Divergence (MACD) sits below its signal line, suggesting bearish pressure in the stock’s short-term trading patterns. This combination signals uncertainty as the stock contends with resistance levels during the current trading phase.
Key resistance is identified near the $22.50 mark, while key support lies around $20.00, framing a range within which market participants will closely watch trading activity in the coming sessions.
At the time of writing, SoFi Technologies stock was valued at $21.17, down 0.89% on the day, reflecting a cautious stance from investors as they await further clarity from sector peers and broader market trends.