SOFI stock drops 8-10% on January 6, 2026, after underwriters exercise full option in $1.5B offering, increasing dilution.
As of January 6, 2026, SoFi Technologies (SOFI) shares have plunged 8-10% in early trading, extending a recent slide and erasing much of the gains from late 2025. The drop follows the company’s disclosure that underwriters exercised their full option in a December public offering, adding millions more shares to circulation.
The Trigger: Underwriters Exercise Full Option on $1.5B Offering
SoFi completed its expanded public stock offering on January 5, 2026, selling a total of 57.75 million shares at $27.50 each after underwriters (led by Goldman Sachs, BofA, and others) exercised their 30-day option to purchase additional shares.
This followed an initial December announcement of a $1.5 billion raise, priced below recent trading levels, which already sparked a sell-off. The full exercise increases outstanding shares significantly, diluting existing holders and pressuring the stock price downward.
Broader Context: Post-2025 Rally Correction
SOFI entered 2026 after a stellar 2025, with shares up ~70% on record member growth, profitability, and product expansions like stablecoins. However, the capital raise—intended for general corporate purposes and growth—has tempered enthusiasm, with the stock dropping ~13% in December alone amid valuation concerns (trading at 53x trailing earnings).
Today’s decline pushes shares below $27, testing support levels as volume spikes.
Analyst Views and Long-Term Outlook
Despite the dip, analysts remain largely positive: consensus targets hover around $28-30, with “Buy” ratings citing SoFi’s path to sustained profitability and ecosystem expansion. The raise bolsters the balance sheet for lending and acquisitions, positioning for 2026 growth amid expected EPS jumps.
Critics note dilution risks in a high-valuation environment, but fundamentals (12.6M+ members, fee-based revenue surge) support recovery potential.
Investor Reactions: Short-Term Pain, Long-Term Debate
Online sentiment is mixed: some view the drop as a buying opportunity (“dip before rip“), while others worry about ongoing dilution. The event highlights classic post-offering dynamics—initial sell-off followed by potential rebound as capital fuels growth.
Conclusion
SOFI’s stock decline on January 6 stems directly from underwriters’ full option exercise in the recent offering, amplifying dilution fears. While painful short-term, the capital strengthens SoFi for future expansion—patient investors may see this as a temporary setback in a longer growth story.
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