Down 30% From Its Highs, SoFi Is Speeding Toward Aggressive Long-Term Profits

By Alex Sirois Published May 29, 10:56AM EDT

Quick Read

Down 35% year to date, SOFI posted record $12 billion in loan originations and 134% net income growth in Q1 2026.
Anthony Noto targets at least 30% compounded adjusted revenue growth and a 38-42% EPS CAGR through 2028.
With $40 billion in deposits and 14.7 million members growing 35%, SoFi's network effects strengthen its long-duration growth case.
It sounds nuts, but SoFi is giving new active invest users up to $1,000 in stock for a limited time, and all it takes is a $50 deposit to get started. See for yourself (Sponsor)

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Down 30% From Its Highs, SoFi Is Speeding Toward Aggressive Long-Term Profits — © Summit Art Creations / Shutterstock.com

When a high-quality fintech name retraces sharply while its fundamentals accelerate, the gap between price and performance becomes the story. SoFi closed Friday at $16.97, down 35.18% year to date from a December close of $26.18, even as the company posted record loan originations and triple-digit net income growth last month. For retail investors scanning headlines, that disconnect is the entire reason to look at fintech disruptors trading under $20 right now.

With that in mind, here is one stock under $20 that the data suggests has been mispriced against its long-term earnings trajectory.

SoFi Technologies (NASDAQ:SOFI | SOFI Price Prediction)

SoFi Technologies runs an all-in-one digital finance platform spanning lending, banking, brokerage, credit cards, crypto, and the Galileo technology stack that powers other fintechs.

At $16.97, SoFi sits well below the $32.73 52-week high and just above the $16.70 50-day moving average. The $21 analyst consensus price target implies a meaningful step up from here, and the stock already rebounded 8.43% in the past week, hinting that the post-earnings flush has found a floor.

The fundamentals support that view. Q1 2026 revenue hit $1.10 billion, beating consensus by nearly 5%, with EPS of $0.12 meeting expectations. Net income jumped 134.45% year over year to $166.73 million, operating income climbed 150.12%, and adjusted EBITDA reached $339.9 million at a 31% margin. Loan originations set an all-time record at $12.18 billion, up 68% year over year. The forward P/E sits around 27, which is reasonable for a business guiding to roughly 30% adjusted net revenue growth in 2026.

The bull case is straightforward. SoFi has evolved into a deposit-funded digital bank with $40.24 billion in deposits funding over 90% of liabilities, a 48 basis point cost-of-funds tailwind, and a Galileo technology platform serving roughly 133 million global accounts. Members grew 35% to 14.7 million, products rose 39%, and 43% of new products are now opened by existing members, a clear network-effect signal. New initiatives like the SoFiUSD stablecoin, the Mastercard settlement partnership, and Big Business Banking extend the platform further. CEO Anthony Noto framed it directly: “We had an excellent Q1 delivering another quarter of durable growth and strong returns.” Management’s medium-term targets call for at least 30% compounded adjusted revenue growth and 38-42% EPS CAGR through 2028.

The risks are real and worth respecting. Technology Platform revenue fell 27% on a large client departure, personal loan charge-offs ticked up to 3.03% from 2.80% sequentially, and net interest margin compressed 63 basis points. With a beta of 2.13, expect more chop. None of that derails a business compounding revenue and members at 30%-plus.

For investors willing to hold through volatility, SoFi under $20 looks like a long-duration growth story trading at a cyclical discount.

The Bottom Line

SoFi’s drawdown reflects genuine concerns about Technology Platform softness, credit normalization, and macro uncertainty. At the same time, a stock under $20 with accelerating earnings, expanding margins, and a deposit-funded balance sheet deserves a closer look than a quick scroll past the ticker. Do your own research, size positions against your own risk tolerance, and weigh the long-term compounding story against the near-term volatility the chart has already shown you.

DISCLOSURE:

Customer must fund their Active Invest account with at least $50 within 45 days of opening the account. Receive a minimum of $15. Probability of member receiving $3,000 is a probability of 0.026% If you don’t make a selection in 45 days, you’ll no longer qualify for the promo. Percentages for the $3,000 are subject to decrease. See full terms and conditions.

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org). Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov. Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 30 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees. Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org). There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement This should not be considered a recommendation to participate in IPOs and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation. New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For more information on the allocation process please visit IPO Allocation.

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About the Author Alex Sirois →

Alex Sirois is a financial writer with experience spanning both retail and institutional investing. He has written for InvestorPlace and held roles at BNY Mellon and Bernstein, giving him a perspective that bridges Main Street portfolios and Wall Street analysis.

Alex holds an MBA from George Washington University and has built his career across multiple industries, including e-commerce, education, and translation — a breadth of experience that informs how he breaks down complex financial topics for everyday investors. His writing is conversational, actionable, and grounded in long-term, buy-and-hold investing principles.

At 247 Wall St., Alex focuses on delivering analysis that is both accessible and useful, with a clear emphasis on helping readers make more informed decisions with their money.