SoFi Technologies Stock Pulls Back After Strong Rally, Wall Street Cautious on Valuation
SoFi Technologies (SOFI) shares tumbled 10% on Thursday, cooling off after a remarkable 76% year-to-date surge. The fintech darling's retreat comes despite robust Q3 earnings and raised full-year guidance, fueled by accelerating member growth and product adoption.
Wall Street remains divided. While SoFi added 905,000 new members and 1.4 million products last quarter - pushing totals to 12.6 million and 18.6 million respectively - analysts warn the stock's premium valuation may already reflect this growth trajectory. The average price target suggests shares are fully priced at current levels.
The company's strategic pivot toward high-margin, fee-based revenue streams continues to strengthen its position. Yet the market appears to be catching its breath after pricing in years of expansion ahead. "When everyone leans the same direction, even quality names need consolidation," observes one sector analyst.
