SoFi Stock Is Underperforming in 2026: Can Q4 Earnings Turn the Tide?

Core Viewpoint - SoFi stock has experienced a significant rise over the past three years but is currently underperforming compared to the S&P 500 Index, with a recent decline of 1.4% over the last three months and trading nearly 20% below its all-time high reached in mid-November [1][4]. Group 1: Stock Performance - SoFi stock rose 70% last year and has outperformed markets for three consecutive years [1]. - The stock has lost 1.4% over the previous three months and is trading nearly 20% below its all-time high [1]. Group 2: Upcoming Earnings - SoFi is set to release its Q4 2025 earnings on January 30, which may influence its stock performance [2]. Group 3: Reasons for Underperformance - The stock's valuations were considered stretched at its peak, making it difficult to justify its high price despite being a strong growth story [4]. - A $1.5 billion capital raise announced in early December, with shares priced at $27.50 below their trading price at the time, negatively impacted investor sentiment [5]. - The relaunch of SoFi's cryptocurrency trading business in November, amid a weak digital asset market, may have contributed to its underperformance [6]. Group 4: Analyst Ratings - Goldman Sachs lowered SoFi's target price from $27 to $24, while Bank of America resumed coverage with an "Underperform" rating and a target price of $20.50 [7]. - Barclays raised its target price from $23 to $28 while maintaining an "Equal Weight" rating, indicating some differing views among analysts [7]. - Despite previous analyst pessimism, SoFi's stock had previously defied expectations and reached new highs [8].