New York, April 9, 2026, 10:09 EDT.
SoFi Technologies (SOFI.O) fell around 1.9% to $16.18 early on Nasdaq after Keefe, Bruyette & Woods dropped its price target to $17 from $20, sticking with its underperform rating. Wells Fargo also lowered its target, moving to $18 from $19, and maintained its equal-weight stance.
The clock is ticking for SoFi ahead of its first-quarter report set for April 29. Investors are weighing whether SoFi’s rapid move into fee-based revenue can offset renewed scrutiny of its loan portfolio, sparked by Muddy Waters’ short call last month and accusations of accounting issues—claims SoFi has denied.
It wasn’t just SoFi feeling the pressure. Shares of Affirm and LendingClub, both in the consumer-lending space, slipped as well this morning, reflecting broader weakness in the sector.
Tim Switzer, analyst at KBW, flagged that signs are “leaning negative.” Still, he cautioned it’s premature to call the entire earnings story. Switzer cited potential hits from fair-value marks—those are accounting moves that adjust asset values to market prices—as well as investors worrying about worsening credit metrics in SoFi’s securitizations. TipRanks
Wells Fargo took a milder approach, sticking to its equal-weight rating and noting that credit and card spending remain resilient. The firm expects banks to maintain a positive stance on the consumer heading into next week, despite cutting its target by $1.
Earlier this week, Barclays slashed its price target to $18 from $28, citing a drop in valuations for the consumer-finance group, which now sit beneath historical norms as macro uncertainty builds. It’s another in a recent string of target cuts just before earnings.
SoFi is refocusing on growth, rolling out Big Business Banking on April 2. The new platform allows enterprise customers to handle deposits and process transactions through a nationally chartered bank, using either traditional currency or digital assets. Early users include Mastercard, Galaxy, Bullish, and BitGo. “Businesses are now operating 24/7,” CEO Anthony Noto said, contrasting that with legacy banks, which, in his words, still keep “9 to 5, Monday to Friday” hours. SoFi Investors
SoFi on March 26 said it expects to secure over $3.6 billion in personal-loan funding from three new partners. CEO Anthony Noto described the loan-platform division as “capital-light,” focused on fees—SoFi books origination and servicing revenue, but doesn’t have to hold every loan itself. SoFi Investors
The company’s got some traction lately. In January, Reuters noted a profit jump for the fourth quarter, driven by growth in its fee-based operations. This month, SoFi put its total membership at 13.7 million, and added that Galileo—its tech division—now backs 128 million accounts worldwide.
For the moment, both KBW and Muddy Waters are sounding alarms in the same direction: a softer credit environment could easily swamp SoFi’s ambitions on the product front. Back in March, Muddy Waters alleged SoFi had at least $312 million in debt it hadn’t recorded. SoFi fired back, labeling the allegations “factually inaccurate and misleading,” and said legal options were on the table. TipRanks
