“Jim Cramer recently weighed in on SoFi Technologies amid its sharp pullback, noting that despite strong underlying business performance and robust earnings growth projections, the stock has dropped over 40% from recent highs to around the $18-$19 range. He views the current levels as presenting compelling value, dismissing AI displacement fears as overblown for this federally chartered bank, and suggests it’s now ‘too cheap to ignore’ with significant earnings expansion expected through 2028.”
Jim Cramer Weighs In on SoFi’s Pullback: A Buying Opportunity Emerges
The recent decline in SoFi Technologies (NASDAQ: SOFI) shares has caught the attention of longtime market watcher Jim Cramer, who has followed the fintech player’s trajectory closely over the years. After enjoying substantial gains in 2024 and 2025—where the stock surged dramatically on the back of improving profitability and member expansion—SoFi has given up a sizable portion of those advances in recent months. The shares have fallen more than 40% from mid-November peaks around $32, trading in the low-to-mid $18 to $19 area as investors reassess fintech momentum amid broader market dynamics.
Cramer highlighted that the pullback came even after what he considered solid earnings results. The company’s latest quarterly report showcased record adjusted net revenue surpassing $1 billion for the first time, up 37% year-over-year, with adjusted EBITDA climbing 60% to $318 million. Fee-based revenue jumped 53% to a record $443 million, underscoring the diversification away from pure lending dependency. Member growth accelerated 35% to 13.7 million, while products held by members rose 37% to over 20 million, reflecting successful cross-selling within its all-in-one digital financial platform.
Despite these operational milestones, the stock has faced pressure. Cramer pointed out that concerns over AI potentially disrupting financial services have weighed on sentiment, with some investors fearing that tools like advanced language models could erode the need for traditional banking features. However, he pushed back firmly against this narrative, emphasizing SoFi’s status as a federally chartered bank with a stable, regulated foundation. In his view, core banking activities—lending, deposits, payments, and personalized financial management—are not easily replaced by AI innovations. He described the sell-off as throwing “the baby out with the bathwater,” arguing that the AI displacement thesis is misplaced for a company like SoFi.
Looking at the valuation, Cramer sees the current price as attractive relative to growth prospects. Management has guided for strong earnings expansion, with expectations of approximately 54% growth in earnings this year, followed by sustained high-double-digit increases averaging around 40% annually through 2028. This trajectory supports a reasonable price-to-earnings growth (PEG) ratio when factoring in forward estimates. At recent levels around $18 to $19, the stock trades at a multiple that Cramer considers discounted given the compounding revenue and profitability improvements.
Key Financial and Operational Highlights
To provide context on why Cramer remains constructive despite the decline, here’s a snapshot of SoFi’s recent performance metrics:
Adjusted Net Revenue : Record $1.013 billion (up 37% YoY)
Adjusted EBITDA : Record $318 million (up 60% YoY, 31% margin)
Fee-Based Revenue : Record $443 million (up 53% YoY)
Members : 13.7 million (up 35% YoY)
Products : 20.2 million (up 37% YoY)
Total Originations : Record $10.5 billion in latest quarter (up 46% YoY), driven by personal loans ($7.5B, +43%), student loans ($1.9B, +38%), and home loans (over $1.1B, nearly 2x YoY)
These figures demonstrate SoFi’s ability to scale efficiently while broadening its revenue streams beyond interest-sensitive lending. The platform’s focus on younger, tech-savvy users continues to drive adoption, with features spanning checking/savings accounts, investing, lending, credit cards, and more—all integrated into a seamless mobile experience.
Cramer has long advocated for SoFi, noting he has recommended it since much lower levels years ago. He previously cautioned patience during earlier phases when the stock carried elevated multiples, suggesting waits for better entry points. Now, with the correction having brought valuations down significantly, he shifted to a more bullish stance, stating it’s safe to consider buying at current levels. The severe pullback, in his estimation, has created a value proposition that outweighs near-term market noise.
Broader fintech sector trends also play into the analysis. While some digital lenders have struggled with higher interest rates impacting loan demand in prior cycles, SoFi’s diversification into fee-based services and deposit gathering has provided resilience. The company benefits from a loyal member base that increases wallet share over time, supporting long-term compounding.
Cramer concluded that the business fundamentals remain strong, with no major cracks in execution. The forecast for continued earnings acceleration makes the current discount appear unjustified. For investors comfortable with volatility in growth-oriented names, this juncture could represent an attractive risk-reward setup as the market potentially revalues the story higher on sustained delivery.
Disclaimer: This is for informational purposes only and not investment advice. Stock markets involve risk, and past performance does not guarantee future results. Always conduct your own research.