New York, Feb 4, 2026, 14:37 EST — Regular session
- SoFi Technologies shares dropped roughly 6% in afternoon trading, wiping out gains from earlier in the day.
- The move comes after J.P. Morgan upgraded the stock just a day ago, keeping attention fixed on the swings following earnings.
- Next week’s delayed U.S. jobs report and inflation figures are on investors’ radar for any hints on rate moves.
Shares of SoFi Technologies, Inc. dropped Wednesday, shedding recent gains amid a wider retreat in growth and tech stocks that dampened investor sentiment.
SoFi slipped 6.4% to $20.37 by 2:24 p.m. EST, having reached a session peak of $21.88 earlier.
The decline is significant since SoFi has been behaving like a high-beta gauge of risk appetite, just days after releasing quarterly results that sparked both applause and doubt. The stock’s volatility has renewed focus on how fast the company can boost fee income while keeping credit costs in check if the economy slows down.
On Tuesday, J.P. Morgan raised SoFi’s rating to “Overweight” from “Neutral,” maintaining a $31 price target. The firm pointed to the post-earnings pullback as an attractive “entry point,” noting that the lender’s outlook and execution have alleviated some valuation concerns. (Investing)
Last week, SoFi posted a profit increase for the fourth quarter, driven by robust loan demand and quicker expansion in fee-based segments like financial services. CEO Anthony Noto told Reuters that member credit performance was “in line with expectations.” (Reuters)
Wednesday saw U.S. stocks drop, dragged down by steep declines in tech sectors, as investors wrestled with whether sky-high valuations remain justified amid growing concerns over competition and disruption. “The market is suddenly skeptical,” noted Jed Ellerbroek, portfolio manager at Argent Capital. (Reuters)
Separately, a Form 4 filing revealed that Chief Risk Officer Arun Pinto initiated a prepaid variable forward contract linked to 71,500 SoFi shares. He received roughly $1.2 million upfront and put up the shares as collateral. These contracts let executives unlock cash from their stock holdings while postponing the actual delivery of shares. (SEC)
Analysts highlight SoFi’s growth in members and deposits as a standout amid fintech’s broader challenges with volatile demand and spotty funding. (Barron’s)
That said, the situation can change fast. If charge-offs pick up again, consumer appetite for personal loans fades, or rate outlooks shift more abruptly than anticipated, earnings could come under strain — and the stock, already reactive to sentiment swings, would feel the impact.
Investors are now gearing up for key U.S. economic data that might shift the rates discussion. The Bureau of Labor Statistics announced the January employment report will drop Wednesday, Feb. 11. Then, the January CPI is scheduled for release Friday, Feb. 13. (Reuters)
