SoFi Stock Takes a Hit: What the $1.5 Billion Raise Really Means

TLDR

• SoFi stock dropped 7.86% to $26.98 on January 6, 2026, after completing a $1.5 billion equity offering
• The offering was priced at $27.50 per share, with shares trading below that level following the sale
• Trading volume surged to 118.7 million shares, up 74% from the three-month average
• SoFi stock is up 121% since its 2021 IPO and nearly doubled during 2025
• Wall Street expects 25% revenue growth in 2026 as the company trades at 47x forward earnings

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SoFi stock closed at $26.98 on Tuesday, down 7.86% following the completion of a $1.5 billion equity raise. The digital finance company priced the offering at $27.50 per share.

SoFi Technologies, Inc., SOFI

Trading volume reached 118.7 million shares. This marked a 74% increase over the three-month average of 68.3 million shares. The heightened activity reflected investor response to the dilutive offering.

SoFi stock had jumped nearly 10% the previous day on minimal news. The two-day combined movement shows a more balanced picture than Tuesday’s decline suggests.

SoFi Stock Offering Details

The equity sale dilutes existing shareholders but provides capital for expansion. Management plans to use the funds for cryptocurrency ventures and potential acquisitions.

SoFi stock has performed exceptionally well recently. Shares nearly doubled in 2025 and have climbed roughly 400% since 2024. The timing allowed the company to raise capital while shares traded at elevated levels.

Companies often pursue equity offerings after strong stock performance. This approach maximizes capital raised per share issued. The business fundamentals remain unchanged by the transaction.

Options activity in SoFi stock has increased ahead of Q4 earnings. Traders are using short-dated bullish contracts that can amplify price movements. Implied volatility has risen as investors position for the results.

SoFi Stock Valuation and Growth

SoFi stock trades at 47 times forward earnings. This premium valuation reflects growth expectations but has drawn scrutiny from analysts. Wall Street projects 25% revenue growth for 2026.

The stock has delivered 121% returns since going public in 2021. Market capitalization stands at approximately $34 billion based on Tuesday’s closing price.

Some analysts have adopted a cautious stance on SoFi stock. Concerns include the rich valuation, execution risks on new initiatives, and near-term earnings pressure. Others see opportunity in the expansion plans.

The broader fintech sector showed mixed results Tuesday. LendingClub fell 1.38% while Upstart declined 0.04%. The S&P 500 rose 0.62% and the Nasdaq gained 0.65%.

SoFi stock reached a 52-week high of $32.73 and a low of $8.60. Tuesday’s close sits in the middle of that range.

The Q4 earnings report will be critical for SoFi stock. Investors want updates on loan growth, credit quality, and management’s capital deployment strategy. These factors will influence the stock’s near-term direction.

Credit quality metrics remain important given the lending-focused business model. Any deterioration could pressure margins and profitability. Management will need to demonstrate effective use of the newly raised capital.

The crypto expansion and potential acquisitions represent both opportunity and risk. Successful execution could justify the current valuation. Missteps could weigh on SoFi stock performance.

The $1.5 billion provides flexibility for the next growth phase. How management deploys these funds will determine whether the dilution benefits shareholders long-term.

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