SoFi Technologies (SOFI) has acquired the technology assets of PrimaryBid, a London-based fintech specializing in IPO allocation tools for retail investors. The deal, confirmed by both companies and disclosed on PrimaryBid's website on May 8, includes PrimaryBid's directed share program technology. A SoFi spokesperson confirmed the acquisition to PYMNTS.
Directed share programs allow companies going public to reserve shares for employees, customers, or individual investors—groups often excluded from traditional IPO allocations dominated by institutional investors. SoFi had previously partnered with PrimaryBid to develop a U.S. platform digitizing this process. The acquisition now brings this capability fully in-house.
Despite the strategic move, SoFi's stock faced headwinds. Shares fell 2.9% in afternoon trading to $15.44, with trading volume exceeding 40 million shares. The decline followed a price target reduction by Truist analyst Matthew Coad, who lowered his target to $17 from $20 while maintaining a Hold rating. Coad cited weaker forecasts for SoFi's loan-platform sales and its technology platform unit.
The acquisition comes as SoFi reported strong first-quarter results. GAAP net revenue reached $1.10 billion, a 43% year-over-year increase. Net income was $166.7 million, while adjusted EBITDA hit $339.9 million. Member count grew 35% to 14.7 million, and total products increased 39% to 22.2 million.
However, investors focused on the company's outlook and business mix. SoFi reported a 16% decline in technology-platform enabled accounts from a year earlier, citing the loss of a major client. For the second quarter, management projects adjusted net revenue growth of approximately 30%. CEO Anthony Noto told Reuters the consumer base remains strong, pointing to record loan growth and anticipated demand. But William Blair analyst Andrew Jeffrey noted the market's disappointment that SoFi did not raise its full-year 2026 guidance after the Q1 beat.
The interest rate environment adds further complexity. Traders on Kalshi priced a 63% probability that the Federal Reserve holds rates steady through 2026, while Polymarket showed a 70% chance. For the June Fed meeting, Polymarket reflected 98% odds of no change. UBS now expects the first rate cut in December 2026, with another in March 2027, citing persistent inflation and a strong labor market.
Higher-for-longer rates boost lending yields but also squeeze borrowers, raise funding costs, and pressure valuation multiples. For SoFi, the concern is that its newer fee and capital-markets segments may not grow quickly enough to offset risks related to consumer credit, loan sales, and the Galileo tech platform. The PrimaryBid acquisition adds a valuable tool, but the core question remains: can SoFi sustain momentum if rates stay elevated and investors demand clearer evidence of diversified growth?
