SoFi stock falls to the $18 range, Jim Cramer says it's "too cheap to ignore"

On February 28, news reports that SoFi Technologies’ stock has fallen more than 40% from its mid-November 2025 high of $32, and is currently hovering around $18, sparking market discussions on whether SoFi stock is worth buying in 2026. Renowned financial commentator Jim Cramer publicly stated that this price level is “too cheap to ignore,” once again bringing this fintech stock to the forefront of public debate.

Cramer pointed out that since its IPO in 2021, SoFi has exceeded expectations in revenue and EBITDA over the past 18 quarters, with nine consecutive quarters of earnings outperforming market estimates, demonstrating strong execution. The latest quarterly report remains solid: Q4 earnings per share (EPS) of $0.13, above the expected $0.12; revenue reached $1.01 billion, up 39.6% year-over-year, surpassing the previous market forecast of $984.75 million. Compared to Q4 2024’s EPS of $0.05, profitability has significantly improved.

From a valuation perspective, the current stock price corresponds to an estimated 2026 forward P/E ratio of about 31 times. Management expects EPS of $0.60 this year, with an approximate profit growth rate of 54%, resulting in a PEG ratio of around 0.6. The discussion around the “undervalued opportunity of high-growth fintech companies” is heating up. Based on Wall Street’s earnings forecasts for 2027 and 2028, the forward P/E ratios could drop below 23 and 19 times, respectively. If management’s targets are fully met, the 2028 valuation could approach 17 times.

Fundamentally, the company’s return on equity (ROE) is 5.88%, net profit margin is 13.34%, and debt-to-equity ratio is only 0.17, indicating a relatively stable capital structure. However, the stock price remains below the 50-day and 200-day moving averages, putting technical pressure on the stock.

Analyst opinions are divided. The market consensus rating is “Hold” with a target price of $26.34. Citizens JMP has upgraded its rating to “Outperform” with a target of $30; Bank of America rates it as “Underperform” with a target of $20.50; Goldman Sachs maintains a “Neutral” rating and has lowered its target to $24.

Fund flows are also mixed. Thoroughbred Financial Services significantly increased its holdings by 212.2% in Q3; in insider trading, EVP Eric Schuppenhauer bought 5,000 shares in early February, while CTO Jeremy Rishel previously sold over 90,000 shares. Currently, insiders hold 2.60% of shares, and institutional investors hold 38.43%.

In the context of high growth and valuation compression, SoFi’s future performance will depend on the pace of earnings realization and changes in market risk appetite.