SoFi Technologies (SOFI) shares are slipping today, even after the fintech company posted its first-ever billion-dollar quarter and issued impressive guidance for 2026.\u00a0At the time of writing, SOFI is hovering around its 200-day moving average (MA) at the $22.69 level. A decisive break below this price may accelerate downward momentum in the near-term.<\/p>\n
Versus its November high,\u00a0SoFi stock is now down nearly 30%.<\/p>\n Investors are bailing on SOFI shares despite a blockbuster quarterly release mostly on lingering dilution concerns from the company\u2019s enormous $1.5 billion capital raise this month.<\/p>\n According to its chief executive, Anthony Noto, however, the recently executed share sale actually positions SoFi Technologies for long-term dominance in the fintech space.<\/p>\n Speaking this morning with\u00a0CNBC, Noto revealed the offering was \u201cimmediately accretive to our tangible book value,\u201d adding another $2 a share to the\u00a0fintech\u2019s equity base.\u00a0SOFI will use that capital to grow faster through product roll-outs and strategic deals that bolster its footing against rivals \u2014 potentially creating shareholder value over time, he concluded.<\/p>\n Long-term investors should consider buying SoFi stock on the post-earnings dip also because it\u2019s uniquely positioned to benefit from two supercycles: blockchain and artificial intelligence (AI).<\/p>\n The San Francisco-headquartered firm is using AI to boost underwriting efficiency, and its crypto offerings are bringing new members to the platform. SOFI added a record 1 million new members in Q4.<\/p>\n Moreover, while the firm\u2019s forward price-to-earnings (P\/E) ratio at north of 40x appears stretched, relative to its earnings growth\u00a0 (160% year-over-year in Q4), it may actually be a bargain for longer-term investors.<\/p>\n Note that\u00a0SOFI\u2019s relative strength index (14-day) currently sits at about 30, indicating the bearish momentum is now near exhaustion.<\/p>\n Wall Street analysts also seem to agree that the ongoing weakness in SoFi Technologies is a little overdone.<\/p>\n<\/p><\/div>\n While the consensus rating on SOFI shares remains at a \u201cHold\u201d only, the\u00a0mean target of about $27.50 suggests potential upside of roughly 20% from current levels.<\/p>\n On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally\u00a0published on Barchart.com <\/i><\/p>\n<\/p><\/div>\n<\/div>\n<\/div>
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