SoFi (SOFI) Stock: Falls Despite New Lightspark Partnership for International Transfers

TLDR

Table of Contents

SoFi shares dropped 5.3% in afternoon trading and closed down 6.1% at $22.74
The decline occurred despite announcing a partnership with Lightspark for international money transfers
Broader tech sell-off impacted the stock as investors await Federal Reserve signals from Jackson Hole
New service will use Bitcoin Lightning Network to offer low-cost international transfers launching later this year
Stock remains up 60.8% year-to-date and 228.77% over past 12 months

SoFi Technologies shares took a hit on Tuesday, falling 6.1% to close at $22.74 despite positive news about a new international money transfer service. The fintech company couldn’t escape the broader market sell-off that hammered tech stocks.

The drop came as investors positioned themselves ahead of the Federal Reserve’s Jackson Hole symposium later this week. Market participants are looking for signals about future monetary policy decisions from Fed officials.

Tech giants led the market decline with Nvidia, Advanced Micro Devices, and Broadcom all posting drops. The VanEck Semiconductor ETF fell as chipmaker stocks got crushed.

Tesla, Meta Platforms, and Netflix also faced selling pressure. Much of the recent market gains have been concentrated in AI-related stocks, and some investors appear to be taking profits.

SoFi + Lightspark = instant global payments. 🌍⚡
Send money abroad in seconds, right from the @sofi app, powered by UMA.
Coming soon for 🇺🇸→ 🇲🇽 with more countries to follow.
The future of global payments is here: https://t.co/MxAA5o9k2Z pic.twitter.com/GFVq4KhoxF
— Lightspark (@lightspark) August 19, 2025

SoFi announced a partnership with enterprise infrastructure provider Lightspark during the trading session. The deal will bring international money transfer services to SoFi’s platform using the Universal Money Address system.

New Transfer Service Details

The service will leverage Lightspark’s Bitcoin Lightning Network technology to enable faster transfers with lower fees. SoFi says it will offer some of the lowest transfer rates globally when the service launches later this year.

Users will see transparent pricing with rates and fees displayed before sending money. The 24/7 service will be integrated directly into the SoFi mobile app.

SoFi CEO Anthony Noto highlighted the practical benefits for customers. “For many SoFi members who regularly send money to loved ones internationally, the ability to quickly transfer money at low cost isn’t just a convenience, it’s a meaningful improvement to their everyday financial lives,” he said.
The CEO emphasized how the partnership unlocks blockchain technology value. He said it gives members “faster, smarter, and more inclusive access to their money” through direct app integration.

Stock Performance and Volatility

SoFi shares opened higher in early morning trading before reversing course. The stock has experienced extreme volatility with 39 moves greater than 5% over the past year.

Despite Tuesday’s decline, SoFi stock remains up 50.84% year-to-date. The shares have gained 228.77% over the past 12 months driven by strong quarterly earnings beats.

The stock is trading near its 52-week high of $24.23 reached in August 2025. Early investors who bought at the November 2020 IPO have seen their investment more than double.

Analysts maintain a Hold rating on SoFi stock with an average price target of $20.06. The consensus includes five Buy ratings, 11 Hold ratings, and four Sell ratings from the past three months.

The target price suggests potential downside of 14.2% from current levels. Tuesday’s decline reflects the stock’s sensitivity to broader market sentiment rather than company-specific concerns.

The international money transfer service is expected to launch before the end of 2025, adding another revenue stream to SoFi’s growing fintech platform.

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