What Happened?
Shares of digital financial services company SoFi Technologies (NASDAQ: SOFI) fell 1.2% in the afternoon session after the stock pulled back following a recent rally.
The decline followed a strong performance the previous day, where the stock reached a new 52-week high. It is common for stocks to experience a temporary retreat as some investors decide to lock in profits after a significant upward move. With no other major company-specific news driving the stock, the current price action seems to be a result of technical trading dynamics rather than a change in the company's fundamental outlook.
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What Is The Market Telling Us
SoFi’s shares are extremely volatile and have had 39 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 5 days ago when the stock gained 3.5% on the news that Needham raised its price target on the company.
The investment firm increased its target to $29 from $25 while maintaining a Buy rating on the stock. Needham's positive outlook is based on improvements in funding availability and costs for lending businesses, which are expected to support stronger growth, especially if interest rate cuts materialize. This sentiment was bolstered by encouraging remarks from CEO Anthony Noto at a recent Goldman Sachs conference. The company has demonstrated strong underlying performance, achieving profitability in the first half of 2025 with revenue growing over 30% year-over-year. SoFi also recently announced a new multi-year partnership with NFL quarterback Josh Allen to enhance its brand visibility.
SoFi is up 92.8% since the beginning of the year, and at $27.24 per share, it is trading close to its 52-week high of $27.67 from September 2025. Investors who bought $1,000 worth of SoFi’s shares at the IPO in November 2020 would now be looking at an investment worth $2,599.
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