After putting up a standout performance in 2025, digital financial services firm SoFi Technologies (SOFI) has suddenly found itself on shaky ground this year. The stock has been sliding, and the pullback has come even after the company delivered stronger-than-expected fourth-quarter results just last month. Fundamentally, the numbers told a strong story, but the market mood has shifted. Investors have become increasingly uneasy about valuation levels and the risk of future dilution from capital raises, both of which have pressured the shares.
At the same time, SoFi has become a victim of the latest broader risk-off market sentiment, where investors are rotating out of high-growth names and dialing back to areas like cryptocurrency and software in favor of safer, more defensive plays. But not everyone is backing away. In fact, analysts at Citizens JMP are urging investors to look beyond the recent weakness. The firm believes that, despite the current pullback, SoFi’s stock could still climb more than 40% in 2026. So, what’s fueling that level of optimism? Let’s take a closer look to find out.
