SoFi Stock: A Fintech Buy After 40% Pullback?

SoFi Technologies has seen its stock retreat by about 40% from last October's high. Shares have moved sideways since March, leaving investors to wonder about the next direction.

The decline is not difficult to understand. Broader fintech sentiment has soured amid shifting rate expectations and a more cautious outlook for digital lending. SoFi, as a growth-oriented financial platform, is exposed to those concerns.

Yet for investors seeking a fintech name to buy, the recent pullback may be a chance. SoFi combines consumer banking, lending, and investing services under one umbrella, offering scale and cross-selling opportunities. The lower valuation compensates for some of the near-term uncertainty.

Whether the stock is poised for a rebound depends on upcoming earnings and continued product adoption. The months of stagnation could be the base for a new advance. For those willing to act soon, the risk-reward appears to be tilting in favor of buying.