SoFi Technologies (SOFI) shares are trading near $16 in pre-market activity as the Nasdaq prepares for Monday's regular session, following a notable decline late last week. The stock last changed hands at $16.03, matching its June 5 close and marking a significant drop from the $18.58 level seen at the start of the month.
Pre-market trading, which runs from 4:00 a.m. to 9:30 a.m. Eastern, often exhibits wider price swings due to lower liquidity. Nasdaq futures edged higher early Monday, though consumer-fintech stocks like SoFi are showing relative weakness compared to the broader tech rebound.
Record Q1 Growth vs. Cautious Outlook
The pressure on SoFi shares stems not from a fresh earnings miss but from lingering disappointment following the company's April report. While SoFi posted record first-quarter results, management left its full-year 2026 revenue guidance unchanged, a move that disappointed some investors anticipating an upward revision.
SoFi reported GAAP net revenue of $1.1 billion, a 43% year-over-year increase, with net interest income climbing 39% to $693 million. Net income reached $166.7 million, or 12 cents per share. The company ended the quarter with 14.7 million members, up 35%, and total products rose 39% to nearly 22.2 million.
CEO Cites Inflation, No Rate Cuts
CEO Anthony Noto told Reuters after the earnings release that the company's consumer base remains healthy and credit performance is in line with expectations. However, he cited persistent inflation and the lack of expected rate cuts as reasons for not raising the full-year forecast. The unchanged guidance has left investors questioning how SoFi will transition from current growth to its stated targets.
Analyst Andrew Jeffrey of William Blair noted in a research report that SoFi "uncharacteristically did not flow through first-quarter revenue and EBITDA upside" to the 2026 outlook, as reported by Reuters. EBITDA, a profit metric that excludes certain expenses, is closely watched by investors comparing companies.
Broader Market Context
SoFi is not alone in facing headwinds. Robinhood Markets (HOOD) traded at $82.47 in pre-market, below its last close, while Upstart Holdings (UPST) was indicated at $29.74, also down. The broader market showed mixed signals, with S&P 500 and Nasdaq 100 futures edging higher as chip stocks paused their slide, but the Dow Jones Industrial Average remained weaker amid rising oil prices and ongoing interest rate concerns.
If interest rates remain elevated, SoFi's funding costs and borrower stress could outweigh gains from member growth. Noto told American Banker that the company dropped its expectation for rate cuts due to higher oil prices and broader inflation worries, reinforcing the decision to keep guidance flat.
Technical Levels and Outlook
SoFi shares currently sit at $16.03, far below the 52-week high of $32.73 and just above the 52-week low of $13.93. After Friday's selloff, traders are closely watching Monday's regular session for signs that the selling pressure is easing. The stock's performance in the coming days will likely hinge on broader market sentiment and any updates on interest rate expectations.
