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SoFi Stock Is Falling Wednesday: What's Driving The Action?
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SoFi Stock Is Falling Wednesday: What's Driving The Action?
Aug 20, 2025 1:06 PM

Shares of SoFi Technologies Inc ( SOFI ) are falling Wednesday afternoon, swept up in a broader market sell-off impacting technology and growth-oriented stocks.

The move extends a volatile period for the fintech company, which is otherwise up some 135% since the stock’s April low, as investors weigh its impressive operational performance against recent strategic financial decisions.

What To Know: Despite Wednesday’s pullback, SoFi earlier received positive price target revisions from analysts at both JP Morgan and Citigroup. JP Morgan maintained its Neutral rating on the stock while raising its target from $22 to $24, while Citigroup reiterated a Buy rating and increased its price target from $18 to $28.

The analyst rating revisions follow what was a stellar second-quarter earnings report posted in July, featuring record revenue of $655.8 million, a 26% year-over-year increase and a GAAP net income of $54.7 million. This performance, driven by strong growth in loan originations and new members, prompted the company to raise its full-year revenue guidance.

The positive news was followed this week by an announced partnership with Lightspark to offer international money transfers via the Bitcoin (CRYPTO: BTC) Lightning Network, a move aimed at expanding its service offerings.

However, the post-earnings momentum was curtailed when SoFi announced a public offering to raise approximately $1.5 billion through the sale of 72 million shares. The capital raise, intended for general corporate purposes, immediately stoked concerns about shareholder dilution, putting downward pressure on the stock price.

Wednesday's downturn is magnified by broader market weakness and Federal Reserve's meeting minutes. For SoFi, the narrative remains split between its compelling growth story and the near-term impact of its recent capital raise, leaving Wall Street analysts divided on its future trajectory.

Benzinga Edge Rankings: According to Benzinga Edge stock rankings, which measure key attributes to identify market opportunities, SoFi demonstrates exceptional strength in its measured categories. The company earns a Momentum score of 96.98, indicating a very strong recent price trend relative to the market.

Furthermore, it boasts a Growth score of 95.83, underscoring the robust operational expansion detailed in its recent record-setting earnings reports and raised guidance. The data points to a stock backed by powerful growth and positive market sentiment.

Price Action: According to data from Benzinga Pro, SOFI shares are trading lower by 0.75% to $22.58 Wednesday afternoon. The stock has a 52-week high of $25.11 and a 52-week low of $6.75.

Read Also: Palantir Stock Is Facing Selling Pressure: What’s Going On?

How To Buy SOFI Stock

By now you're likely curious about how to participate in the market for SoFi Technologies ( SOFI ) – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

Image: Shutterstock

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