SoFi Stock Is Breaking Below Key Support Ahead of Q4 Earnings. Should You Buy the Dip or Stay Far Away?

Core Viewpoint - SoFi Technologies (SOFI) shares experienced a significant decline of nearly 8% following a $1.59 billion equity offering, indicating potential bearish momentum ahead [1]. Group 1: Stock Performance - Following the recent equity offering, SoFi stock is down nearly 19% compared to its 52-week high [2]. - The stock closed below a major support level (100-day moving average), suggesting further bearish trends may develop [1]. Group 2: Earnings and Future Prospects - SoFi is scheduled to report its Q4 earnings on January 26, with consensus expectations for quarterly profit to more than double year-over-year to $0.11 per share, which could act as a near-term catalyst for recovery [4]. - Analysts from Needham maintain a "Buy" rating on SOFI with a price target of $36, indicating a potential upside of about 33% [6]. Group 3: Business Developments - The company is expanding into the cryptocurrency market and has launched the "SoFiUSD" stablecoin, diversifying its revenue streams and strengthening its position in digital assets [5]. - The core business is expected to benefit from anticipated interest rate cuts by the Federal Reserve in 2026 [5]. Group 4: Analyst Sentiment - Despite positive developments, the consensus rating on SoFi shares is currently "Hold," with a mean target of $27.53, indicating caution among analysts regarding a strong rebound in the near term [8].