Stock Market Today, April 29: SoFi Technologies Drops After Flat Full Year Guidance Despite Beating Revenue Expectations

SoFi Technologies (SOFI 15.44%), a digital-first consumer finance platform, closed at $15.53, down 15.44% on Wednesday. The stock declined after Q1 results beat revenue expectations and the company reported strong member and product growth, but full-year guidance disappointed. Investors are watching how cautious Q2 revenue targets affect growth expectations. Trading volume reached 196.2 million shares, about 193% above its three-month average of 67 million shares. SoFi Technologies IPO’d in 2021 and has grown 27% since going public.

How the markets moved today

The S&P 500 finished Wednesday essentially flat, slipping 0.02% to 7,138, while the Nasdaq Composite inched up 0.04% to close at 24,673. Within the fintech industry, peers LendingClub closed at $16.57 (-1.81%) and Upstart ended at $30.48 (-7.24%), underscoring pressure across digital lenders.

What this means for investors

It looked like a great all-around quarter for SoFi:

• revenue rose 41%
• net income margin improved from 9% to 15% year over year
• membership increased by 35%
• products used jumped 39%
• total loan originations grew 16%
• regulatory capital ratio of 21% doubled the required 10.5%

However, management’s reiterated guidance of 30% sales and membership growth in 2026 apparently disappointed the market, leading to today’s sell-off. Quite frankly, I think this reaction is harsh, especially with SoFi stock down over 50% from its 52-week high.

Guiding to generate adjusted EPS of $0.60 in 2026, SoFi currently trades at 26 times forward earnings, which isn’t outrageous for a company that has delivered annualized sales growth of 46% over the last five years.