Is SoFi a Buy, Sell, or Hold in 2026?

10 hours ago 6

Thomas Niel, The Motley Fool

Tue, December 16, 2025 astatine 3:05 AM CST 5 min read

Surging much than 75% twelvemonth to date, each eyes are connected whether SoFi Technologies' banal could repetition its show successful 2026.
A affluent valuation, caller sideways terms performance, and different glancing factors suggest different bull tally is unlikely.
But instrumentality a deeper dive, and 1 could reason that, arsenic agelong arsenic the maturation communicative stays intact, SoFi banal could deed adjacent loftier terms levels implicit the adjacent 12 months.
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Since the commencement of 2025, the stock terms of SoFi Technologies (NASDAQ: SOFI) has jumped implicit 75%. This beardown terms appreciation outpaced large indexes similar the S&P 500 (up 17% implicit this aforesaid clip frame).

But caller and existing investors are mostly much funny successful aboriginal imaginable than past performance. Can shares successful this fast-growing fintech proceed to execute good implicit the adjacent 12 months? This question is particularly relevant, arsenic the banal has traded sideways since September, and its existent affluent valuation of implicit 45 times guardant net whitethorn suggest to immoderate that it's go overvalued comparative to different fiscal exertion stocks.

A pistillate uses a fintech app connected her mobile phone.

Earlier this year, SoFi Technologies was connected a tear. Investors showed zero hesitation bidding up the company's shares past summertime erstwhile SoFi reported precocious revenue, membership, and adjusted net earlier interest, taxes, depreciation, and amortization (EBITDA) growth, arsenic good arsenic a determination toward accordant affirmative GAAP (generally accepted accounting principles) earnings.

So, past wherefore has this banal been treading h2o since September? After all, fiscal results proceed to beryllium strong. During the 4th ending Sept. 30, 2025, SoFi Technologies again exceeded expectations. Revenue, membership, and adjusted EBITDA were up 38%, 35%, and 49% twelvemonth implicit year, respectively, lone somewhat beneath the levels of maturation reported during Q2 2025.

While the maturation communicative stayed mostly intact (that's bully for semipermanent investors), a fewer items person negatively affected shares successful the abbreviated term.

For one, Cathie Wood's ARK Invest household of exchange-traded funds (ETFs) precocious chopped vulnerability to the stock, which possibly wounded near-term terms performance. Then, earlier this month, SoFi Technologies announced plans to summation the stock number successful hopes of raising $1.5 billion. This raised concerns astir stock dilution, and the quality led to a much than 7% stock terms driblet erstwhile announced connected Dec. 5.

Alongside concerns astir dilution and quality of a salient capitalist selling the stock, valuation is apt different origin weighing connected shares lately. Even arsenic SoFi reports higher levels of maturation than larger mature competitors similar PayPal (NASDAQ: PYPL), its valuation premium whitethorn look questionable.