Is SoFi Stock a Buy in October 2026?
2026-10-08 17:10
•Leo Sun •The Motley Fool
•••• • Axe Cap view
SoFi’s Tumble: Opportunity or Value Trap?
SoFi’s shares have halved despite strong growth, but South African investors should weigh US interest rate risks carefully.
SoFi’s 50% drop from its 2025 peak looks dramatic, especially given solid fundamental growth—members up 35% and products up 42%. At 11 times adjusted EBITDA, it’s far cheaper than its previous 36x multiple. For South African investors tracking USD/ZAR, the picture is mixed. Higher US rates may boost SoFi's lending income, but they also raise credit risk and increase the rand’s sensitivity to dollar strength. That could pressure rand earnings from US exposure. The fintech’s projected 27% revenue CAGR and 37% EBITDA growth sound appealing, but currency swings and Fed policy remain wildcard factors. Locally, if USD/ZAR spikes above 19, SoFi’s results could face headwinds when translated back to rand. Naspers and Prosus remain the preferable way to play tech exposure with less rate sensitivity. this is just our opinion and not financial advice
Watch SoFi for now—wait for a clearer Fed rate trajectory and see how USD/ZAR behaves. Local investors may prefer trimming exposure and focusing on less volatile JSE tech plays like Naspers or Prosus.
- USD/ZAR
- Naspers
- Prosus
- US Federal Reserve hiking beyond expectations
- Rand weakness amplifying FX translation risk
5/10
SoFi Technologies stock has fallen 50% from its November 2025 peak of $32.21 to around $15, despite strong fundamentals including 35% member growth to 15.8 million and 42% product growth. The decline is attributed to Fed rate hikes and investor concerns about lending activity, but the stock now trades at an attractive 11x adjusted EBITDA valuation. Analysts project 27% revenue CAGR and 37% adjusted EBITDA CAGR through 2028, suggesting the stock may be undervalued relative to its growth prospects.
Our take is based on reporting first published by The Motley Fool.