SoFi Technology’s stock has retreated from a high of $32.70 in November to around $25.85. It has formed a head-and-shoulders and a diamond reversal pattern, pointing to further downside ahead of the upcoming earnings. The neckline sits at the psychological level of $25, its lowest since October and December last year. The move below the Supertrend indicator and the 50- and 100-day EMAs reinforces the bearish setup.
Analysts warn the downside could extend toward the 50% Fibonacci retracement near $20. A move above $30 would invalidate the bearish outlook and open the door for a rebound toward last year’s high of $32.70.
SoFi has progressed on several fronts, including the launch of its SoFiUSD stablecoin and plans to re-enter crypto trading. The company reported momentum in its core business, with membership rising to over 12.6 million and net revenue up 38% to $950 million, while adjusted EBITDA climbed 50% to $277 million.
Analysts project the fourth-quarter revenue to rise about 32% to $982 million, lifting annual revenue to roughly $3.56 billion, up 36% year over year, with $4.5 billion expected this year. Yet the upside may be tempered by risks, including a deceleration to about 27% growth and a recent equity raise of more than $1.5 billion. Valuation remains a concern, with a forward P/E around 71 and a forward PEG of 1.30, higher than the sector median.
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