SoFi slides as CEO buys shares, gains stablecoin approval

SoFi Technologies has lost about a third of its market value this year while making several strategic moves. CEO Anthony Noto purchased company shares on five occasions this year. The company secured approval to offer a bank-charter-backed stablecoin, SoFiUSD, and completed the acquisition of Composer Securities to expand its investing products.

SoFi’s share price is down roughly 33% year-to-date and is trading near $15.61. The stock sits about 44% below its 52-week high. Valuation metrics recently reported include a price-to-earnings ratio near 34.7 and a price-to-sales ratio near 5.1.

The stablecoin approval makes SoFi the first national bank‑chartered firm authorized to offer a stablecoin to customers. SoFiUSD is available to customers to buy, sell, hold and use for transactions inside the SoFi app. Reserves for SoFiUSD will be held directly at the Federal Reserve. Some analysts have noted that holding reserves at the Fed is different from common commercial reserve arrangements used by many stablecoins.

SoFi acquired Composer Securities and launched Composer by SoFi, an investing service that uses algorithms and artificial intelligence to create and manage rules‑based strategies for clients. In a company statement, SoFi described Composer as: “Composer uses AI to help investors build sophisticated rules-based strategies that are executed automatically according to clear, predefined rules. These rules can be refined with specific weights, conditions, and filters. This means investors maintain visibility into how their strategies work and can evaluate historical performance across different market environments before deciding whether to activate a strategy.”

The company has shifted parts of its business model from holding large loan portfolios toward a capital‑light approach that emphasizes fee income. SoFi can choose to retain loans on its balance sheet or sell them to third parties. When loans are sold, the company records fee revenue at the point of sale and lowers the loan exposure on its balance sheet.

Management has outlined longer-term targets for return on equity in the mid‑to‑high‑teens to low‑thirties range, specifically citing goals in the 20%–30% area as part of profitability plans.

Short‑term traders have an instrument tied to the stock: the Direxion Daily SOFI Bull 2X ETF (SOFA), which seeks to deliver 200% of the daily return of SoFi common stock. That ETF is structured for amplified exposure over very short time horizons and carries the typical risks and costs of daily‑leveraged products.

Investors and analysts have pointed to several items to watch: customer adoption and transaction activity for SoFiUSD, user uptake and performance of Composer by SoFi, the pace of loan sales and related fee income, and upcoming quarterly financial results. These metrics will be used to assess the company’s progress as it shifts revenue mix and rolls out new products.