What's Going On With SoFi Technologies Stock Tuesday?

SoFi Technologies (NASDAQ:SOFI) shares are trading marginally lower Tuesday morning as the market continues to digest a $1.5 billion equity offering alongside a new partnership and monetary policy expectations. Here’s what investors need to know.

• SoFi Technologies stock is under pressure. Why are SOFI shares declining?

What To Know: Last week, SoFi priced a public offering of 54.5 million shares at $27.50, a move that strengthens its balance sheet, but dilutes existing shareholders.

On Tuesday, the company announced a partnership with Templum to offer accredited investors exclusive private market access to Stripe and Epic Games, further diversifying its “financial super app” strategy.

While the dilution explains the immediate price action, the looming Federal Reserve decision is the critical macro-driver. Markets anticipate a 25-basis-point cut on Wednesday, but analysts warn of a hawkish cut, a reduction accompanied by guidance that the easing cycle may abruptly pause.

For SoFi, this distinction is vital. The company's bull case relies heavily on a resurgence in student loan refinancing and mortgage volumes, which require significantly lower rates to become attractive to borrowers. If the Fed signals that rates will remain higher for longer to combat sticky inflation, the anticipated refinancing boom for 2026 could evaporate.

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Furthermore, as a bank that relies on spread income, SoFi faces net interest margin compression risks. A hawkish stance keeps SoFi's cost of funding high, while competitive pressures may force the company to lower lending rates to attract customers.

Finally, as a high-growth fintech stock, SoFi's stock valuation is hypersensitive to the dot plot. Fewer projected cuts reduce the present value of its future cash flows, capping upside potential.

Benzinga Edge Rankings: Despite the negative short-term price trend, Benzinga Edge data highlights strong fundamental potential, assigning SoFi an exceptional Growth score of 95.78 and a Momentum score of 93.41.

SOFI Price Action: SoFi Technologies shares were down 1.67% at $27.17 at the time of publication on Tuesday, according to Benzinga Pro data.

Currently, SoFi is trading approximately 3.2% below its 50-day moving average, suggesting a short-term bearish trend. In contrast, it is trading around 35.5% above its 200-day moving average, indicating a more significant long-term uptrend.

This divergence between the short-term and long-term moving averages may signal a lack of momentum for a sustained recovery in the stock price.

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