Fintech Challenger SoFi Stock Sees Strong Rebound Off Support – Is the Pullback Over?
SoFi Technologies’ recent rally—fueled by strong Q2 results and bold digital-banking plans—faced a sharp pullback, but a 7% technical...
Quick overview
- SoFi Technologies experienced a significant stock rally driven by strong Q2 results and ambitious digital-banking plans, reaching a record high of $30.35.
- Despite a recent pullback of over 16%, the stock rebounded nearly 8% after finding support at the 50-day SMA near $25.
- Analysts project continued growth for SoFi, with expected revenue of $883.14 million in the next quarter and $3.43 billion for full-year 2025.
- The company's expansion into digital banking and crypto services, along with enhancements to traditional financial products, positions SoFi as a comprehensive fintech platform.
SoFi Technologies’ recent rally—fueled by strong Q2 results and bold digital-banking plans—faced a sharp pullback, but a 7% technical rebound suggests bulls may be regaining control.
A Roller-Coaster September for SoFi
After a stellar start to September, SoFi Technologies (NASDAQ: SOFI) reached a record high of $30.35, surpassing its 2021 peak and celebrating renewed investor enthusiasm over robust earnings and ambitious digital-finance initiatives.
The rally, however, proved fragile. Over the last two weeks, SoFi’s stock fell more than 16%, sliding to $25 as traders locked in profits. This decline pushed the share price below the 20-day simple moving average (SMA)—a technical level that had supported its uptrend since April.
SOFI Chart Daily – Breaking Below the 20 SMA
Yet the 50-day SMA, sitting near $25 (a former resistance zone dating back to 2021), provided a sturdy floor. Buyers stepped in aggressively, triggering a bounce of nearly 8%, with the stock climbing above $27 today. The rebound now faces a fresh test: reclaiming the 20-day SMA, which has flipped into potential near-term resistance.
Q2 Beat Powered Initial Surge
The surge in early September was underpinned by SoFi’s impressive Q2 results, which outpaced Wall Street expectations.
Revenue climbed 23.6% year-on-year, and gross profit margin improved to 82%, reinforcing the company’s strong fundamentals and earning it a “GOOD” financial-health rating.
The growth was driven by accelerating member acquisition, deeper product engagement, and strong fee-based revenue. Management further boosted investor confidence by raising full-year guidance, signaling that the company believes it can deliver despite fierce competition in the fintech landscape.
Analyst Projections Signal More Growth Ahead
According to Zacks Consensus Estimates, SoFi is projected to generate $883.14 million in revenue in the next quarter—28% higher year-on-year—and deliver EPS of $0.08, marking a 60% jump over the same period last year.
For full-year 2025, analysts expect $3.43 billion in revenue and EPS of $0.32, representing impressive gains of 113% in revenue and 32% in earnings compared to 2024. These figures highlight strong growth potential even as share-price volatility reveals investors’ sensitivity to short-term sentiment shifts.
Digital Banking and Crypto Expansion Drive Optimism
Investor enthusiasm has also been buoyed by SoFi’s bold expansion into digital banking and crypto services.
New offerings—such as staking features, crypto-backed lending, and the integration of Bitcoin and Ethereum buy-sell tools within the SoFi app—reflect the company’s strategy to build a comprehensive fintech ecosystem.
There’s even early talk of exploring a proprietary stablecoin, which would further solidify SoFi’s positioning at the intersection of mainstream banking and digital assets.
Cross-Border Innovations Strengthen Core Services
SoFi is also working to enhance its traditional financial products. Upcoming updates will allow qualified SoFi Money users to access automated, self-service international transfers directly through the app.
This initiative aims to streamline global remittances and improve convenience for customers—an increasingly crucial factor as competition from neobanks intensifies.
By strengthening both its core banking infrastructure and emerging crypto offerings, SoFi is positioning itself as an all-in-one platform to retain users and expand its share in the digital-finance space.
Outlook: Bulls Eye Resistance Break
While SoFi’s short-term volatility underscores the challenges of sustaining momentum in a highly competitive fintech sector, the recent technical bounce suggests that buyers may be attempting to reignite the uptrend.
If the stock can reclaim the 20-day SMA decisively, momentum traders may see renewed upside potential—though lingering concerns over valuation remain a key risk factor for long-term investors.
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