SoFi Stock Is Sliding Wednesday: What's Going On?

SoFi Technologies Inc SOFI shares are trading lower Wednesday following an analyst downgrade from Keefe, Bruyette & Woods.

What Happened: Keefe, Bruyette & Woods analyst Michael Perito downgraded SoFi from a Market Perform rating to an Underperform rating and lowered the price target from $7.50 to $6.50, citing recent outperformance and a change in the analyst's model.

Perito noted that the firm's updated 2024 revenue and EBITDA expectations are well below Street estimates, largely due to slower origination growth and technology revenues.

"SOFI's shares remain heavily debated, and ultimately achieving (and sustaining) profitability in 4Q23/2024 could be possible; however, we believe there are more downside scenarios to this outcome than upside, which at a premium valuation shifts us to a more cautious stance," the analyst said in a note to clients.

Of all the analysts covering SoFi, nine have positive ratings, six have neutral ratings and four have negative ratings. The average analyst price target currently sits at $10.30, according to Benzinga's analyst data. 

SoFi shares are up more than 40% since the company last reported earnings at the end of October. SoFi is expected to report quarterly earnings again at the end of January although a date has not yet been confirmed by the company. According to Benzinga Pro, analysts are anticipating flat earnings on revenue of $571.779 million.

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SOFI Price Action: SoFi shares were up more than 100% over a one-year period. The stock was down 10.8% at $8.602 at the time of publication, according to Benzinga Pro.

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