NEW YORK, May 13, 2026, 14:02 EDT
- SoFi picked up PrimaryBid’s technology, putting the IPO allocation tools for individual investors more firmly under its own roof.
- Shares slipped in afternoon trade following a price target cut from Truist, which pointed to issues in both the loan and technology platforms.
- Odds of a rate cut are still slim, posing a challenge for consumer lenders. SoFi, though, is turning in solid gains in both members and loan volume.
SoFi Technologies has snapped up PrimaryBid’s technology, a targeted play aimed at expanding the digital bank’s reach in IPOs and capital markets for retail investors. On its website, PrimaryBid disclosed the May 8 acquisition by SoFi. A SoFi spokesperson also confirmed to PYMNTS that the deal includes PrimaryBid’s directed share program assets.
SoFi is pushing to prove it can expand past consumer lending, and that’s why this deal is taking center stage. The stock, though, isn’t getting a break: shares dropped 2.9% to $15.44 in afternoon trading, trading above 40 million shares, according to market data.
Directed share programs give companies heading for an IPO the option to earmark shares for employees, customers, or retail investors—groups typically left out when big institutions split up the allocation. SoFi previously teamed up with PrimaryBid to develop a U.S. platform aimed at digitizing and streamlining that workflow.
The sale ends PrimaryBid’s stint as an independent London fintech, once supported by SoftBank, Fidelity, and the London Stock Exchange Group. According to Financial News, the deal terms weren’t revealed. Founder and CEO Anand Sambasivan told the outlet he welcomed SoFi’s plan to use the technology for what he called a “resurgent U.S. IPO market.” F London
With the acquisition, SoFi steps deeper into territory where Robinhood has also been working to offer retail investors earlier entry into IPOs. Reuters noted in 2024 that both SoFi and Robinhood were among a group of fintechs making moves into a slice of the IPO business that was mostly the domain of Wall Street funds.
Investors aren’t seeing the deal as a straightforward solution. Truist’s Matthew Coad dropped his price target on SoFi to $17 from $20, maintaining a Hold rating, according to TipRanks. Coad pointed to weaker forecasts for both loan-platform sales and the tech-platform unit.
On paper, SoFi turned in a robust first quarter, posting GAAP net revenue of $1.10 billion—a 43% jump over last year. Net income landed at $166.7 million. Adjusted EBITDA registered $339.9 million. Member count climbed 35% to 14.7 million, and total products increased 39% to 22.2 million.
Investors zeroed in on the company’s outlook and business mix. SoFi reported a 16% drop in technology-platform enabled accounts from a year ago, citing the departure of a major client. For the second quarter, management is projecting adjusted net revenue growth right around 30%.
After the results, Chief Executive Anthony Noto told Reuters the company’s consumer base is still “strong,” pointing to record loan growth and anticipated demand for the second quarter. But William Blair analyst Andrew Jeffrey wasn’t impressed by the market’s response, noting SoFi didn’t raise its 2026 guidance to reflect the first-quarter beat. Reuters
The rate environment complicates things further. According to Kalshi, traders were pricing in a 63% chance that the Federal Reserve holds rates steady with no cuts through 2026. Over on Polymarket, that probability climbed to 70%. As for the upcoming June Fed meeting, Polymarket reflected near-certainty—98% odds—that rates stay put.
Higher-for-longer rates tend to boost lending yields, yet they also squeeze borrowers, drive up funding costs, and weigh on valuation multiples. On Wednesday, Reuters said UBS now expects the Fed to start cutting rates in December 2026 and March 2027—delays UBS attributes to persistent inflation and a still-strong labor market.
The worry for SoFi: its younger fee and capital-markets segments might not ramp up quickly enough to balance out concerns tied to consumer credit, loan sales, and what’s happening with the Galileo tech platform. Snagging the PrimaryBid deal adds another tool to SoFi’s kit. Still, the core issue remains: how much of SoFi’s momentum actually sticks if rates remain elevated and investors keep pushing for more concrete evidence of diverse growth streams.
