SoFi Stock Drops 8% After $1.5 Billion Equity Sale

TLDR

• SoFi stock dropped 7.86% to $26.98 on January 6, 2026, following a $1.5 billion equity raise priced at $27.50 per share
• Trading volume hit 118.7 million shares, 74% above the three-month average of 68.3 million
• The stock had gained nearly 10% the previous day, and is up 121% since its 2021 IPO
• Investors are watching closely ahead of Q4 earnings, with heavy options trading driving volatility
• SoFi trades at 47 times forward earnings with Wall Street expecting 25% revenue growth in 2026

SoFi Technologies closed Tuesday at $26.98, down 7.86% from the previous session. The drop came immediately after the company completed a $1.5 billion equity raise.

SoFi Technologies, Inc., SOFI

The offering was priced at $27.50 per share. The market pushed shares below that level once trading opened. Trading volume surged to 118.7 million shares, about 74% higher than the three-month average of 68.3 million.

The stock had jumped nearly 10% the day before on minimal news. Looking at both days together, the net movement isn’t as dramatic as Tuesday’s standalone decline suggests.

The equity sale dilutes existing shareholders but doesn’t change the company’s operations. SoFi is using the fresh capital to fund crypto expansion plans and potential acquisitions.

The timing of the raise makes sense from a strategic standpoint. The stock nearly doubled in 2025. It’s up roughly four times in value since 2024.

That kind of run creates an opportunity to raise capital while shares are riding high. Companies often tap the market when their stock is performing well.

Options Activity Fueling Volatility

Heavy options trading has amplified the stock’s daily swings. Traders are placing large bets using short-dated bullish options. This type of activity can magnify price movements in both directions.

Implied volatility has risen as the Q4 earnings report approaches. Investors are positioning for the results, which could move the stock sharply depending on what management reports about loan growth and credit quality.

The broader digital lending sector showed mixed results Tuesday. LendingClub slipped 1.38% while Upstart declined just 0.04%. The S&P 500 rose 0.62% and the Nasdaq gained 0.65%.

Valuation and Growth Expectations

SoFi currently trades at 47 times forward earnings. That’s a rich multiple by most standards. Wall Street analysts expect 25% revenue growth in 2026, which helps justify the premium valuation for some investors.

The company has raised concerns among some analysts about execution risks. The crypto expansion and acquisition strategy require successful integration and deployment of the newly raised capital.

Credit quality and loan growth will be key metrics to watch in the upcoming earnings report. These factors directly impact the company’s ability to deliver on growth expectations.

Some analysts have turned more cautious on the shares. The combination of high valuation, near-term earnings pressure, and execution risks around new growth initiatives has prompted downgrades.

The stock’s recent volatility reflects this tension between growth potential and current valuation. Bulls see opportunity in the expansion plans. Bears worry about the price being paid for that potential.

SoFi has been public since 2021 and is up 121% since its IPO. The current market cap stands at approximately $34 billion based on Tuesday’s closing price.

The company now has $1.5 billion in fresh capital to deploy toward its growth strategy. Management will likely provide updates on deployment plans during the Q4 earnings call.

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