SoFi Stock Is Getting Absolutely Crushed This Year. Is It Finally Time to Buy?

May 16, 2026 - 23:20

SoFi Technologies has been one of the more confusing stories on the market this year. The fintech company continues to report solid numbers. Revenue is climbing, membership is growing, and the company recently posted its first profitable quarter on a GAAP basis. By most operational measures, SoFi looks like it is firing on all cylinders. Yet the stock has been getting absolutely crushed in 2025, down sharply from its highs and trailing the broader market by a wide margin.

The disconnect comes down to valuation and interest rates. SoFi rode a wave of optimism in late 2024 and early 2025, pushing its stock price to levels that priced in perfection. When the Federal Reserve signaled it would keep rates higher for longer, growth stocks with high price-to-earnings multiples took a hit. SoFi was no exception. Higher rates squeeze the company's lending margins and make future profits less valuable in today's dollars. Investors also worry that a potential slowdown in consumer spending could hurt SoFi's personal loan business, which is a major revenue driver.

So is this finally the time to buy? The answer depends on your time horizon. If you believe SoFi can continue to grow its deposit base and cross-sell products to its expanding user base, the current pullback might be a rare chance to get in at a lower price. The company's technology platform and banking charter give it real advantages over older banks. But if you are looking for a quick rebound, the macro headwinds are not going away anytime soon. The stock could stay under pressure until the Fed changes course. For patient investors, the business itself looks stronger than the stock price suggests. For traders looking for a fast turnaround, the risk is still high.