SoFi Technologies (SOFI) shares declined for a second consecutive session on Wednesday, closing at $16.68, a drop of 5.98%. The decline wiped out the gains from last week's rally, which had been fueled by the launch of the company's SoFiUSD stablecoin and a new artificial intelligence-powered financial coach. The stock had risen 17% last week, but the momentum has faded as broader market caution and lingering risks from a short-seller report weigh on investor sentiment.
The broader market also faced headwinds. The S&P 500 fell 0.7% and the Nasdaq Composite slipped 0.9% on Wednesday, as rising oil prices and Treasury yields pressured growth-oriented equities. High-growth fintechs like SoFi are particularly sensitive to such macroeconomic shifts, as higher yields reduce the present value of future earnings.
SoFi launched SoFi Coach on June 2, an AI-powered chat feature designed to provide personalized financial guidance on spending, budgeting, saving, and investing. The tool uses software that answers member questions and analyzes their financial data within the app. CEO Anthony Noto emphasized the core principle of “spend less than you make and invest the rest,” but acknowledged that many people lack the confidence to act without sufficient information. The feature is initially available to SoFi Plus members, and the company’s financial planning team developed it.
This move places SoFi alongside Robinhood Markets (HOOD) and Charles Schwab (SCHW), both of which have recently introduced AI tools for brokerage and personal-finance customers. Brian Walsh, SoFi’s head of advice and planning, described SoFi Coach as “the next evolution” in the company’s financial-planning business.
Last week, SoFi also announced that SoFiUSD, a stablecoin pegged to the U.S. dollar, is now live for members. The company expects all users to have access by early June as they update the app. The stablecoin news was the primary driver of last week’s rally, supported by momentum traders. However, the gains proved short-lived as the stock reversed course this week.
Despite the product launches, SoFi bulls have faced a frustrating year as strong operational results have failed to lift the stock. On April 29, shares dropped even after the company reported record first-quarter numbers. SoFi maintained its 2026 revenue forecast, and William Blair analyst Andrew Jeffrey noted that the company did not pass through its revenue and EBITDA beats into guidance. EBITDA (earnings before interest, taxes, depreciation, and amortization) increased in the quarter.
First-quarter adjusted net revenue rose 41% year-over-year to $1.1 billion. Loan originations hit a record $12.2 billion, and membership grew 35% to 14.7 million. The company also reported its tenth consecutive GAAP-profitable quarter. GAAP refers to generally accepted accounting principles in the U.S.
In another strategic move, SoFi appointed Kathleen Pierce-Gilmore, formerly of Visa (V), as president of technology solutions. This unit is central to SoFi’s banking and payments infrastructure ambitions, as reported by PYMNTS.
However, risks remain prominent. Credit performance, loan-sale economics, and confidence in SoFi’s accounting are under scrutiny after short seller Muddy Waters targeted the company in March. SoFi dismissed the report as “factually inaccurate and misleading” and threatened legal action. Muddy Waters disclosed it held a short position, which it said could change after publication. The short seller’s bearish thesis centers on the idea that growth from AI and crypto products may not offset a potential loan slowdown, rising losses, or a market that demands lower valuations for fintechs.
