SoFi Technologies Inc. (SoFi Technologies (SOFI)) shares fell more than 3% on Wednesday as investors turned cautious ahead of the company's second-quarter earnings report due next week.

SoFi Technologies Earnings and Analyst Outlook

SoFi is scheduled to report second-quarter results on July 29. Wall Street expects earnings of 11 cents per share, up from 8 cents a year earlier. Analysts also forecast revenue of $1.11 billion, compared with about $860 million in the prior-year quarter.

The stock trades at about 39.2 times earnings, reflecting a premium valuation versus many financial peers.

Analysts have a consensus Hold rating and an average price forecast of $22.58. Recent research includes Goldman Sachs raising its price forecast to $21 while maintaining a Neutral rating on July 9. Truist Securities lowered its price forecast to $17 and kept a Hold rating on May 12. Citigroup maintained its Buy rating and reduced its price forecast to $30 on May 4.

Technical Picture Remains Weak

SoFi traded at $17.07, about 21.3% below its 200-day simple moving average of $21.68. That keeps the long-term trend under pressure.

The stock also remains below a "death cross" that formed in March, when the 50-day moving average dropped below the 200-day moving average. However, the 20-day moving average continues to sit above the 50-day average, suggesting short-term momentum has stabilized.

The relative strength index stood at 45.7, indicating neutral momentum with a slight bearish bias.

Traders are watching resistance near $18.50. A break above that level could improve sentiment. Support sits near $15.50, where buyers have previously stepped in.

MarketDash Edge Ratings and ETF Ownership

According to MarketDash Edge, SoFi scores strongly on growth but weakly on momentum. The combination suggests the company's long-term growth profile remains attractive, although weak price momentum continues to weigh on investor sentiment.

SoFi is a notable holding in several exchange-traded funds, including the ARK Blockchain & Fintech Innovation ETF (ARKF), where it represents a 3.41% weighting, the Fundstrat Granny Shots US Small- & Mid-Cap ETF (GRNJ) at 1.83%, and the Global X FinTech ETF (FINX) at 4.08%.

Large inflows or outflows in these ETFs can create additional buying or selling pressure for SoFi shares.

SoFi Technologies Price Action

SoFi Technologies shares were down 3.29% at $17.06 at the time of publication on Wednesday, according to market data.