Global Finance News
29 Apr 2026, 19:24
SoFi Technologies (SOFI) Tumbles 14% Despite Record Revenue
SoFi Technologies shares fell roughly 14% on Wednesday, a punishing reaction to an earnings report that was better than expected on the surface but left investors with plenty to worry about underneath.
The digital bank posted Q1 revenue of $1.1 billion, up 41% year-over-year, and record loan originations of $12.2 billion. Yet the stock sold off hard for three key reasons.
First, Galileo, SoFi's high-margin banking-as-a-service platform, saw revenue collapse 27% to $75 million, hit by the exit of major client Chime from the platform (24/7 Wall St.). Second, SoFi's Q2 guidance missed Wall Street's forecasts on both revenue growth and EBITDA margin, sparking concerns about the company's near-term trajectory (FinancialContent). Third, management left its full-year guidance unchanged — offering no upside surprise to a market that needed reassurance.
Adding to the pressure, a second Muddy Waters short report alleged accounting irregularities involving a $312 million JPMorgan loan, while TD Cowen slashed its price target to $17 from $24 and Bank of America cut its target to $18, both citing macro headwinds and competition (StocksToTrade).
At around $15.88 per share, SOFI now trades more than 50% below its 52-week high of $32.21 from November 2025 (FinancialContent).
SoFi Technologies shares fell roughly 14% on Wednesday, a punishing reaction to an earnings report that was better than expected on the surface but left investors with plenty to worry about underneath.
The digital bank posted Q1 revenue of $1.1 billion, up 41% year-over-year, and record loan originations of $12.2 billion. Yet the stock sold off hard for three key reasons.
First, Galileo, SoFi's high-margin banking-as-a-service platform, saw revenue collapse 27% to $75 million, hit by the exit of major client Chime from the platform (24/7 Wall St.). Second, SoFi's Q2 guidance missed Wall Street's forecasts on both revenue growth and EBITDA margin, sparking concerns about the company's near-term trajectory (FinancialContent). Third, management left its full-year guidance unchanged — offering no upside surprise to a market that needed reassurance.
Adding to the pressure, a second Muddy Waters short report alleged accounting irregularities involving a $312 million JPMorgan loan, while TD Cowen slashed its price target to $17 from $24 and Bank of America cut its target to $18, both citing macro headwinds and competition (StocksToTrade).
At around $15.88 per share, SOFI now trades more than 50% below its 52-week high of $32.21 from November 2025 (FinancialContent).