Fintechs have been on a roller-coaster ride over the past few months, with industry darling SoFi Technologies (SOFI) plunging more than 37% from its 2024 high.
The sell-off was stoked by profit-taking, (legal) insider selling, and renewed fears of a trade war after President Trump’s election win spooked markets.
SOFI nearly doubled in 2024, rising 87% to close the year at $15.40 a share. It added another 17% in January on Trump inauguration euphoria.
Since then, the stock has given up all of its 2025 gains and is now down 11% year-to-date. Clearly, the market’s volatility has shaken out a lot of investors — even smart money.
That’s part of the reason SoFi ranked among the ten most shorted large-cap stocks in February. According to Hazeltree’s Crowdedness Report, it earned a crowdedness score of 88, approaching peak short interest.
Separate industry data shows that SOFI short interest has been building since mid-2024, suggesting investors were bracing for a sharp pullback after the stock’s meteoric rise.
But now that SoFi has corrected and bullish sentiment has cooled, some analysts argue that betting against the stock could be shortsighted.
In other words, if short sellers keep piling in, SoFi’s rebound could end up being one of the most hated rallies of the year.
Company fundamentals look strong
While SoFi is widely known as a consumer finance brand, it received a bank charter in early 2022 — a regulatory milestone that allowed the company to expand its financial service offerings, including holding deposits and issuing loans.
That momentum carried through 2024, which CEO Anthony Noto called SoFi’s best year ever.
In the final quarter of 2024, SoFi reported net revenue of $734 million, added 785,000 new customers, and grew total deposits to $26 billion. It ended the year with more than 10.1 million customers — a 34% jump compared to 2023.
Moving forward, analysts expect 2025 to be another year of strong growth. SoFi could also benefit from President Trump’s deregulatory agenda, which is expected to lift financial services broadly.
Financial researcher Syeda Seirut Javed noted that 43 hedge funds continue to hold SoFi stock. Despite the wave of short interest, many on Wall Street remain optimistic about the company’s long-term fundamentals.
And with the risk of sparking even more contrarian bets, Mad Money host Jim Cramer recently urged investors not to overreact to SoFi’s recent dip.
SoFi is in a good spot because it’s “run by Anthony Noto,” Cramer said. “I know that right now, stocks are for sale. I don’t want you to sell it. It can come down a little bit more. Do not panic. The company’s in good hands, and the stock was up a great deal not that long ago.”
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