NEW YORK, Feb 3, 2026, 14:36 (ET) — Regular session
- SoFi shares dropped roughly 3%, despite JPMorgan upgrading the stock to “Overweight”
- The stock pulled back following an initial surge; fintech rivals slipped as well
- Traders zero in on credit trends and look for follow-through after last week’s results
Shares of SoFi Technologies slipped 3.4% to $21.34 in afternoon trading Tuesday, after an early rally gave way to a slide. The stock fluctuated between $23.34 and $21.04, with roughly 66 million shares traded.
This shift is significant since SoFi now serves as a key barometer for risk appetite in consumer-centric fintech. When investors shy away from growth stocks, these lenders usually reflect the change quickly.
The news comes just days after the company’s quarterly earnings, a period when prices tend to swing and analysts scramble to adjust their targets. A boost from a major bank can offer support, but it won’t halt selling if the market is under pressure.
The broader market also took a hit. The S&P 500 ETF SPY dropped 1.2%, the Nasdaq-100 tracker QQQ declined 1.9%, and the financial sector ETF XLF slipped 1.4%.
JPMorgan bumped SoFi up to “Overweight” from “Neutral,” holding the price target steady at $31, according to TipRanks. Analyst Reginald Smith said the post-earnings selloff created the “entry point” he’d been waiting for, highlighting “undeniable” momentum as SoFi continues to add members and deposits at record speed. (“Overweight” means JPMorgan expects the stock to outperform its sector or benchmark.) TipRanks
SoFi posted a stronger fourth-quarter profit last week, driven by robust loan demand and faster gains in its fee-based businesses, including the financial services segment. Financial services revenue jumped 78% to $456.7 million, while total loan originations reached a record $10.5 billion. CEO Anthony Noto also highlighted a proposed 10% cap on credit card interest rates as a possible boost for personal loans.
Other names in consumer finance took hits Tuesday. LendingClub dropped 5.0%, Upstart shed 4.2%, and Affirm slipped 1.7%.
Separately, SoFi announced late Monday it will liquidate and shut down the SoFi Next 500 ETF (SFYX). Trading is set to end at the close on Feb. 18, with liquidation occurring around Feb. 25. Remaining shareholders will receive cash distributions, which SoFi noted will trigger a taxable event.
Equity investors face some straightforward questions in the near term. Was the post-earnings selloff in SoFi largely just positioning, rather than a sign of credit deterioration? And will deposit growth continue to help control funding costs as the company relies more heavily on personal loans?
The danger is the stock remains stuck due to valuation concerns. Should credit losses rise or loan growth falter, upgrades might have little impact, and the shares could continue to slide in an already selective market.
Feb. 18 marks the last trading day for SoFi’s SFYX ETF. Meanwhile, stock traders are eyeing signs of stabilization following the early-session reversal, looking out for new indicators on loan performance in the weeks ahead.
