Eyeing a SoFi Sale as My Stock of the Year Struggles

I wrote to my "Stocks Under $10" readers just this past Friday in response to the Q4 earnings released by SoFi Technologies (SOFI) , after the stock sold off with the rest of the market despite very strong results and solid guidance. 

I told you at that time that I would be backing up the truck at the 200-day SMA. I left my target price at $36, and I reiterated the fact that I still see this as a $100 stock over the long-term. Those views have not changed.

That Being Said...

I did take down a chunk close to the 200-day line, significantly increasing the size of my long position. I am now very close to making a sale. Let me explain:

The Chart​

Readers will see that on Friday, Monday and Tuesday, SOFI pierced the 200-day SMA to the downside, but never broke contact with the level. 

This is looking to be a ninth consecutive "down" day for the stock. Unless there is a huge rally later on Wednesday, ​the stock will lose contact with that line.

While I would feel foolish making a sale on the ninth day of a sell-off, my code of discipline demands that I act at both target prices and panic points. Therefore, should SOFI fail to take back its 200-day SMA, I will be forced to lighten up, probably taking off the portion I took on last Friday for a LIFO loss that would still be a sizable FIFO gain.

If the shares trade lower, I'll pile back in once I see a new pattern. If the shares rebound higher, I'll change the momentum as the shares re-cross this line. It's all just Trading 101. No emotion, at all. 

SOFI is still my stock of 2026. It just has not been a very good stock so far in 2026.

At the time of publication, Guilfoyle was long SOFI equity.