Why SoFi Stock Fell 22% Last Month

Last month, shares of SoFi Technologies (NASDAQ: SOFI), a financial technology (fintech) services company, tumbled 22.1%, according to data provided by S&P Global Market Intelligence , as some investors reevaluated their exposure to some areas of the market.

While no company-specific news drove SoFi lower in February, a few factors likely contributed to the stock's decline, including investor unease about the company's high valuation and the Federal Reserve's pause on interest rate cuts. It's also likely that investors fled SoFi stock as part of a broader shift toward safer investments.

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Investors' risk appetite may be waning

SoFi isn't particularly risky, but its valuation as of last month was fairly high. The company's shares had a trailing price-to-earnings ratio of about 58 at the beginning of the month, significantly higher than the S&P 500's average P/E ratio of about 29.

SoFi stock gained 70% in 2025, and investors may have been taking some of their gains and seeking safer havens. That's been part of the theme for some high-flying tech stocks and cryptocurrencies lately, which have plunged over the past few months.

Artificial intelligence has introduced uncertainty into investment strategies due to its massive potential for disruption. While AI hasn't negatively impacted SoFi's business model, investors have nonetheless rotated out of some software, tech, and fintech stocks.

SoFi investors may have been particularly skittish about the stock last month following the Federal Reserve's pause in its rate cuts in January. Lower interest rates can help boost SoFi's loan businesses, so it's likely investors weren't happy that rates appear to be staying in place for now.

Now could be a good time to buy SoFi

SoFi CEO Anthony Noto said that the company's 2025 was "tremendous" and that the company's fourth-quarter results (which ended Dec. 31) were "nothing short of exceptional" -- and he's not wrong. SoFi's fourth quarter revenue rose 37% to $1 billion and adjusted earnings per share surged 160% higher to $0.13 per share. What's more, SoFi now has 13.7 million members (what it calls customers), up 35% from the year-ago quarter.

And management says more growth is on the way. The company's leadership issued revenue guidance of $4.6 billion for 2026, an increase of 30%, and net income growth of about 72% to $825 million. SoFi's management also said it will grow its membership base by at least 30% this year.

Considering SoFi's impressive sales and earnings in 2025, strong guidance for this year, and its large and growing membership, investors may want to buy SoFi stock while it's trading at a relative discount.

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.