SoFi stock edges higher ahead of Q2 earnings

SoFi Technology’s stock has climbed from roughly $15 to about $19 in recent weeks as investors await the company’s second-quarter earnings later this month. The gain follows first-quarter results that showed net revenue up 41% to $1.1 billion and membership growth of 35%.

In the first quarter, SoFi reported products per member rose 39% and total members reached 14.7 million after adding a record 1.1 million new members. Analysts project second-quarter revenue of about $1.12 billion, annual revenue near $4.68 billion for the current year and $5.78 billion next year, and earnings per share of roughly $0.59 this year and $0.81 next year.

CEO Anthony Noto attributed part of the stock’s weakness to a wider pullback in fintech, with several industry peers also under pressure. Year-to-date, SoFi’s share price has fallen nearly 30% while the Nasdaq 100 has gained about 18%, leaving the stock about 42% below its all-time high.

SoFi has introduced several products this year, including the relaunch of crypto trading, a new stablecoin called SoFiUSD, an AI-driven financial guidance tool named Coach, and a home equity line of credit product. Company executives describe the launches as efforts to expand the firm’s consumer offerings within its app.

Earlier this year SoFi issued 57.7 million new shares and raised about $1.58 billion in that placement. The company reported raising more than $3.8 billion over a six-month span, a level of capital raising that diluted existing shareholders.

Short seller Muddy Waters published a report alleging SoFi overstated the fair value of its loan portfolio, underreported losses and carried undisclosed debt; the company denied those claims. Valuation metrics show a forward price-to-earnings ratio near 31 and a PEG ratio around 9.12. SoFi cited a Rule of 40 score of 72%, its 18th consecutive quarter above the 40% threshold.

On technical charts, the stock has moved above its 50-day moving average and the relative strength index recovered from about 21 to near 60. Market technicians note a rising wedge pattern that could limit gains unless the stock breaks above the wedge’s upper boundary, a move some analysts say could open a path toward roughly $25 per share. Investors and traders are watching the company’s upcoming earnings report for further data on revenue and profitability trends.