SoFi Technologies (SOFI 3.13%) stock has struggled this year, down about 37% year to date despite strong first-quarter earnings and the launch of its own stablecoin, SoFiUSD.
The rollout of SoFiUSD, a bank-issued U.S. dollar stablecoin, marks the first time that a U.S. bank-issued stablecoin is available directly on a banking app.
SoFi stock has gained about 7% since Q1 earnings were released, and it surged after more details on the stablecoin came out in late May. Nonetheless, the stock price remains down big year to date, and its forward P/E has dropped to 28 from 44 at the start of 2026.
Should investors be looking more closely at SoFi stock as a buy now, given these recent developments?
Image source: Getty Images.
SoFi reported a record Q1
The fintech was firing on all cylinders in Q1, with revenue rising 43% to a record $1.1 billion and net income surging 134% to $167 million. Both results crushed estimates.
The gains were fueled by a record $12.2 billion in loan originations. In addition, it set records with 35% growth in members and 39% growth in products, which are the financial products and services that members use.
SoFi stock actually retreated post-earnings because investors were concerned that the company did not raise its full-year guidance. Management expects members to increase by 30%, adjusted net revenue to rise by 30%, and adjusted net income to surge by 18%. Investors may have viewed the guidance, in light of the blowout quarter, as a sign of a slowdown.
The stablecoin launch may have been initially buried by the results and guidance. A month later, on May 27, the company issued a release with more details about SoFiUSD — and SoFi stock popped 16% over the next few days.
The SoFiUSD stablecoin creates buzz
The new stablecoin certainly created some buzz among investors, but is there a real revenue opportunity from this endeavor?
There are mixed views on Wall Street. With some 15 million customers, SoFi could generate significant transaction-based revenue alongside its banking and lending revenue, say the bulls. It also adds another benefit or feature for members to help with customer expansion and retention.
Today’s Change
(-3.13%) $-0.52
Current Price
$15.96
Key Data Points
Market Cap
$21B
Day’s Range
$15.92 – $16.72
52wk Range
$13.97 – $32.73
Volume
67.6M
Avg Vol
67.4M
Gross Margin
61.74%
Bears say it brings with it compliance and regulatory risks. It also requires significant investment with the potential for paper profits, not real cash flow.
It’s too early to form a definite opinion, but investors should pay attention to the stablecoin impact over the next few quarters.
Analysts expect slower revenue growth in 2027 — 22% versus 30% in 2026. Further, only 31% rate the stock as a buy with a median price target of $18 per share, suggesting 12% upside over the next 12 months.
One potential catalyst for SoFi is its inclusion in the S&P 500. It recently became eligible for the large-cap benchmark, and if it were added, it would provide a boost to the stock price as it is added to massive S&P 500 index funds.
