What’s Happening With SoFi Technologies Stock?
SoFi Technologies (SOFI) stock was down 8% on Jan 6. The recent slide reflects renewed concerns around equity dilution, its high valuation, and crypto exposure, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story? See, SoFi completed the equity sale at $27.50 per share, resulting in the issuance of millions of new shares, diluting the value of existing shareholder equity and increasing share supply in the market. Furthermore, SOFI stock was already trading at a premium valuation (around 47 times forward earnings), leaving little room for error and making it susceptible to selling pressure when negative news emerged.
Before judging its downturn resilience, let’s look at where SoFi Technologies’ fundamentals stand today.
- Size: SoFi Technologies is a $32 Bil company with $3.3 Bil in revenue, currently trading at $26.98.
- Fundamentals: Last 12 month revenue growth of 34.0% and net margin of 19.3%.
- Liquidity: Has Debt to Equity ratio of 0.09 and Cash to Assets ratio of 0.12
- Valuation: SoFi Technologies stock is currently trading at a P/E multiple of 49.4 and P/S multiple of 9.5
- Has returned (median) -34.9% within a year following sharp dips since 2010. See SOFI Dip Buy Analysis.
These metrics point to a Strong operational performance, alongside Very High valuation – making the stock Risky. For details, see Buy or Sell SOFI Stock
That brings us to the key consideration for investors worried about this fall: how resilient is SOFI stock if markets turn south? This is where our downturn resilience framework comes in. Suppose SOFI stock falls another 20-30% to $19 – can investors comfortably hold on? Turns out, the stock saw an impact slightly better than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
Image by 3D Animation Production Company from Pixabay
2022 Inflation Shock
- SOFI stock fell 83.3% from a high of $25.78 on 1 February 2021 to $4.30 on 7 December 2022, vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 25 August 2025
- Since then, the stock increased to a high of $32.21 on 12 November 2025, and currently trades at $26.98
SOFI Stock Performance During The 2022 Inflation Shock
2020 Covid Pandemic
- SOFI stock fell 2.8% from a high of $12.66 on 28 December 2020 to $12.30 on 29 December 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 7 January 2021
SOFI Stock Performance During The 2020 COVID-19 Pandemic
Feeling jittery about SOFI stock? Consider a portfolio approach. The Trefis Reinforced Value (RV) Portfolio has outperformed its all-cap stocks benchmark (combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to produce strong returns for investors. Why is that? The quarterly rebalanced mix of large-, mid-, and small-cap RV Portfolio stocks provided a responsive way to make the most of upbeat market conditions while limiting losses when markets head south, as detailed in RV Portfolio performance metrics.
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