SoFi Stock Dives After Surprise $1.5 Billion Share Offering—Buy the Dip or Brace for More Pain?

San Francisco — SoFi Technologies (NASDAQ: SOFI) jolted the fintech landscape late Thursday by unveiling an underwritten public offering of roughly $1.5 billion in common stock, its largest capital raise since securing a bank charter in 2022. Management said proceeds will “further strengthen the balance sheet, accelerate product expansion, and support regulatory capital requirements” for its fast-growing SoFi Bank subsidiary. The announcement immediately pressured SoFi stock in after-hours trading, with shares sliding about 5 percent to $28.25, retracing part of the 92 percent surge the name has logged year-to-date on the NASDAQ. Earlier in the regular session, SOFI closed at $29.74 after touching an intraday high of $30.42, its best level since August 2021. Why raise cash now? Analysts point to three drivers: • Capital cushion for rapid deposit growth. SoFi Bank’s customer deposits eclipsed $25 billion in Q3 2025, up 60 percent year-over-year, thanks to market-leading 4.6 percent APY on checking balances. Additional equity helps keep the Tier 1 leverage ratio comfortably above regulatory minimums. • Funding low-cost lending. Management intends to funnel fresh capital into its high-margin personal-loan and student-loan refinancing books, segments benefiting from the renewed federal payment cycle. • Strategic flexibility. CEO Anthony Noto has hinted at potential bolt-on acquisitions in wealth management and payments to deepen SoFi’s “financial-super-app” ecosystem. Still, dilution concerns are weighing on sentiment. The expected 50 million to 55 million new shares would boost the float by roughly 6 percent, trimming 2026 EPS estimates by a similar magnitude, according to preliminary Wall Street models. The company last tapped markets in January 2024 with a $750 million convertible-note issue; those securities are already in-the-money after the stock’s 2025 breakout. Technically, bulls are watching support at the 50-day moving average near $26.80 and resistance at the recent 52-week high of $32.73. A decisive move above that ceiling would clear room toward analysts’ long-term price targets in the mid-$40s, while a failure could invite profit-taking back to the $24 consolidation zone. Looking ahead, investors will scrutinize SoFi’s Q4 2025 earnings call scheduled for February 4 for an updated run-rate on net-interest margin, operating leverage, and the timeline to GAAP profitability. Management reiterated its goal of delivering at least $0.36 in adjusted EPS for full-year 2025, implying a forward P/E near 80 even after Thursday’s pullback. Bottom line: short-term dilution risks are clashing with long-term growth ambitions, setting up elevated volatility in SoFi stock over the next several sessions. Traders focused on momentum may eye technical levels for direction, while fundamental investors will gauge whether the $1.5 billion war chest accelerates SoFi’s march toward becoming the next-generation one-stop digital bank.