SoFi Stock Rebounds after Stablecoin Launch but Needs to Break $20 to Turn Bullish
SoFi Technologies shares are attempting a trend reversal after rebounding above $18, supported by optimism surrounding the launch of SoFiUSD, the first stablecoin issued by a U.S. national bank on a banking platform.
Quick overview
- SoFi Technologies shares are attempting a recovery after rebounding above $18, driven by optimism from the launch of SoFiUSD, the first stablecoin issued by a U.S. national bank.
- The company's recent earnings report showed strong revenue growth, but concerns about the sustainability of its revenue mix and platform weaknesses have raised investor caution.
- SoFi plans to expand its offerings with features like tokenized deposits and global cross-border transfers, aiming for full availability of SoFiUSD by early June.
- Despite impressive growth metrics, SoFi's elevated valuation and potential credit risks continue to be key concerns for investors.
SoFi Technologies shares are attempting a trend reversal after rebounding above $18, supported by optimism surrounding the launch of SoFiUSD, the first stablecoin issued by a U.S. national bank on a banking platform.
SoFi Shares Attempt Recovery
SoFi Technologies shares came under heavy pressure following its late-April earnings report, as investors reacted negatively to several weak points in the company’s financial outlook. The stock fell sharply but eventually found support near the $15 level before staging a strong rebound over the last two sessions, lifting shares back above $18 and improving short-term sentiment.
Stablecoin Launch Boosts Optimism
Investor confidence improved after SoFi announced the launch of SoFiUSD, the first stablecoin issued by a U.S. national bank directly on a banking platform. The company said the product is now available to its nearly 15 million members, allowing users to buy, sell, and hold the stablecoin directly within the SoFi app.
SoFiUSD is redeemable 1:1 for U.S. dollars through SoFi Bank, which maintains liquid reserves backing all outstanding tokens. The stablecoin currently operates on Ethereum and Solana, with plans to expand to additional blockchain networks in the future.
Expansion Plans and Future Growth
CEO Anthony Noto said the launch combines blockchain efficiency with the trust of regulated banking services. SoFi also plans to expand the offering by enabling tokenized deposits that could provide interest earnings and FDIC insurance protection.
Additional plans include global cross-border transfers and integration with institutional trading platform Bullish. Full availability of SoFiUSD is expected by early June as users update to the latest version of the SoFi app.
Stock Reversal Gains Momentum
Shares of SoFi Technologies dropped more than 15% after earnings in late April, reversing a recovery attempt after rebounding off the 100 weekly SMA and extending a broader downtrend that began late last year. The stock had previously climbed to $32.80 in November 2025 before turning lower.
SOFI Chart Weekly – Returning to the 100 SMA
Technically, SoFi found support near the 100-week moving average once again, at around $15 in March, sparking a rebound above $18 today. However, buyers should push the price above the 50 weekly SMA for the larger uptrend to resume. $12.50.
Earnings Details Disappoint
While headline growth remains strong, several underlying metrics fell short of expectations. Fee-based revenue—which includes brokerage services, platform fees, and loan-related income—rose 23% to $387 million but missed forecasts of $405 million.
This miss raised concerns about the quality and sustainability of SoFi’s revenue mix, particularly as investors look beyond top-line growth.
Platform Weakness Raises Questions
Additional pressure came from the company’s technology platform segment. Revenue from its banking-as-a-service business declined 27% year over year following the loss of a key client, Chime.
The drop highlights potential vulnerabilities in SoFi’s platform strategy, especially as competition and instability in the sector increase.
Valuation and Risk Remain Key Concerns
Despite strong growth in lending and user expansion, SoFi’s elevated valuation continues to draw scrutiny. At the same time, limited disclosure around its private credit exposure may be adding to investor unease.
SoFi Q1 Earnings Highlights Strong Growth
Revenue beats expectations:
- SoFi Technologies reported Q1 revenue of $1.1 billion, up 41% year over year, surpassing expectations of $1.05 billion.
Sustained top-line expansion:
- Annual revenue reached approximately $3.61 billion, reflecting ~30% growth over three years and nearly 50% over five years.
Earnings improvement:
- Earnings per share doubled to $0.12, up from $0.06 a year earlier, in line with analyst estimates.
Operating Metrics Show Strong Momentum
Loan growth accelerates:
- Loan originations rose 16% to a record $12.2 billion, signaling continued demand across lending products.
Customer base expands rapidly:
- Total members increased 35% year over year to 14.7 million, highlighting strong user acquisition and platform adoption.
Guidance remains solid:
- The company maintained full-year revenue guidance of around $4.66 billion, implying ~29% growth from 2025 levels.
Valuation Raises Caution
Premium pricing:
- Shares trade at a price-to-sales ratio of ~6.6 and a P/E near 49, elevated compared to peers.
Macro and credit risks:
- Despite strong growth, concerns remain around credit quality and broader economic conditions, which could pressure future performance.
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