SoFi Faces Stock Market Volatility Amid First Profitable Year

MENLO PARK, Calif. (AP) — SoFi Technologies, a banking technology company, has been significantly impacted by recent fluctuations in the stock market, with its share price plummeting by 37% since peaking in January. This decline comes despite the company reporting its first full year of profitability in 2024 and demonstrating solid business momentum.

As of April 11, 2025, SoFi’s market capitalization stood at $12 billion, with its stock price at $10.70—a 1.66% drop of $0.17 in trading that day. The decline is notable given the company had overwhelmed expectations previously, ending 2024 with 10.1 million members, a 34% increase from the previous year, and a revenue growth of 26%.

However, uncertainty surrounding the economic landscape, including ongoing trade tensions and potential recession risks, has raised concerns among investors. SoFi’s latest earnings report indicated that while revenue projections were promising, guidance on earnings per share (EPS) fell short of expectations, hinting at weakened profit margins ahead.

“We want to better tilt our incremental revenue growth toward investment. We have significant untapped addressable markets, and we have proven that the more we invest, the more we produce durable growth and strong returns,” said SoFi CFO Chris Lapointe during the recent earnings call.

SoFi’s future growth strategies include expanding its personal loan securitization agreements, which total around $1.2 billion, and enhancing its loan platform through a $5 billion agreement with Blue Owl Capital. Additionally, the company is focusing on its technology platform, Galileo, whose recent launch of a Deposit Sweep product aims to maximize interest earnings for customers.

The company’s recent performance includes a drastic reduction in its market value—almost 50% over a two-month span. Many analysts suggest this may be an overreaction since the stock is trading at its lowest price-to-book valuation in six months despite notable business advancements.

“While risks remain, I believe SoFi is an excellent business with tremendous potential and looks attractive at current prices,” said one market analyst. With ongoing interest from new members in financial services products rather than loans, the opportunity for increased cross-selling remains significant.

Furthermore, conditions affecting SoFi include pressures from the trade war, which, depending on its developments, may lead to inflationary consequences and sustained high interest rates. Analysts warn that a prolonged trade dispute could result in decreased consumer lending and increased delinquency rates.

The corporate strategy remains focused on leveraging existing customer relationships to drive product adoption. As the interest rate landscape continues to evolve, SoFi aims to adjust its offerings accordingly, particularly on high-yield savings accounts that have recently experienced some interest declines.

Despite the market volatility, many experts continue to advocate for a long-term investment approach with SoFi, emphasizing the importance of capitalizing on low stock prices. The consensus among investors is that potential market obstacles lie ahead, yet the long-term prospects of SoFi’s diverse offerings and sound business model suggest resilience.