SoFi Technologies Pops 5% as Short Squeeze Chatter and Earnings Anticipation Heat Up

SoFi Technologies (NASDAQ:SOFI | SOFI Price Prediction) stock rose 5% on Wednesday morning, climbing from $18.79 to $19.70 in the premarket hours.

Two forces are driving the action: retail community chatter about a potential short squeeze and building anticipation ahead of Q1 2026 earnings scheduled for April 29. With the stock still down 28% year-to-date, traders are watching closely to see whether this week’s momentum marks a genuine inflection or just a bounce.

Short Squeeze Chatter Fuels the Move

SOFI carries a beta of 2.3, making it one of the more volatile names in the fintech space. That high-beta profile, combined with a stock that’s been under pressure from a Muddy Waters short report, has retail traders buzzing about the conditions for a squeeze.

The stock is reclaiming key technical levels, which tends to amplify short-covering pressure when momentum shifts. With over 1.27 billion SOFI shares outstanding and institutions holding roughly 56% of the float, any sustained buying from retail and momentum traders can move the needle quickly.

It’s worth noting that SoFi Technologies CEO Anthony Noto has been putting his own money to work. Noto acquired 28,900 SOFI shares at $17.32 on March 17 and 56,000 shares at $17.88 on March 2, signaling internal confidence at prices below current levels. That kind of discretionary buying from the top tends to get noticed in retail communities.

Earnings Anticipation Builds With 13 Days to Go

SoFi Technologies reports its Q1 2026 results before the market open on April 29, just 13 days away. Analysts are forecasting revenue of approximately $1.05 billion and EPS of $0.12, consistent with the company’s own guidance of adjusted net revenue of approximately $1.04 billion and adjusted EPS of approximately $0.12 for Q1 2026.

The earnings beat track record here is hard to ignore. SoFi beat EPS estimates in all four quarters of 2025, with surprise percentages of 94%, 34%, 34%, and 18% from Q1 through Q4. That kind of consistency tends to attract positioning ahead of the print.

The most recent quarter was a landmark. Q4 2025 marked SoFi’s first-ever billion-dollar quarter, with revenue of $1.025 billion and record member additions of 1.03 million. Full-year 2026 guidance calls for adjusted net revenue of approximately $4.655 billion and adjusted EPS of around $0.60.

Business Momentum Adds to the Bull Case

SoFi launched its “Big Business Banking” platform, enabling enterprise partners including Cumberland, BitGo, and Mastercard to manage fiat and crypto banking from a single nationally chartered bank. Separately, SoFi’s Galileo platform integrated with the FedNow Service, enabling 24/7 instant payments, positioning SoFi among the first banks to offer both send and receive functionality.

SoFi also expanded its loan platform with over $3.6 billion in personal loan commitments from a major global bank, an insurance firm, and an asset manager. They represent real revenue diversification away from the personal loan concentration that bears have flagged as a risk.

The Bear Case Hasn’t Gone Away

Muddy Waters Research published a short report alleging improper accounting practices and a $312 million JPMorgan deal misstatement. SoFi Technologies has denied all allegations, called the report inaccurate, and stated it’s considering legal action. No Wells Notice from regulators has been issued.

Analyst sentiment remains mixed. Goldman Sachs rates SOFI stock Neutral with a $20 price target, Barclays rates it Equal Weight with an $18 target, and Keefe Bruyette and Woods maintains an Underperform rating. On the other hand, Mizuho holds an Outperform rating, and the average analyst price target sits near $25, implying meaningful upside from current levels.

Sector Tailwinds Are Helping

SoFi Technologies stock isn’t moving in isolation. Broader fintech sentiment has been improving, with peers like Robinhood Markets (NASDAQ:HOOD) also seeing renewed interest. Upstart and Affirm both posted strong sessions Tuesday, signaling the sector may be turning a corner. That rising tide is giving high-beta names like SOFI stock an extra lift.

CNBC’s Jim Cramer has publicly backed the stock, stating “the bulls are right” on SoFi Technologies. Morningstar has also increased its fair value estimate, calling shares undervalued at current prices. Whether those views hold after April 29 depends on whether SoFi can extend its beat streak and defend its guidance against a challenging macro backdrop.

Watch for whether today’s gains hold into the close and whether volume picks up through the week. The April 29 earnings call at 8 a.m. ET is the next real test for SoFi Technologies.