Cathie Wood Trades Profitable SoFi for a ‘Dollar-less’ Startup… Did She Sell Too Soon?

Now that she's run out of crazy predictions to say in CNBC (like Bitcoins going to $3.8 million by 2030 and Tesla hitting $2,600 by 2029), Cathie Wood (or "Mama Cathie" as we like to call her around here) just sold $12.8 million in SOFI, the fintech with a fanbase that rivals the Beliebers.

But you’re going to be shocked when I say this… I think she might’ve made a big mistake. First, let’s talk numbers (sorry, Cathie, but this is real math). Her ARK Innovation ETF (ARKK) has tried to revive itself with a recent 15.93% gain, which sounds good on paper... until you remember that’s only a 3.25% year-to-date return. Meanwhile, the Nasdaq’s up 28.5%, and the S&P is doing just fine with 27.17%. To put it bluntly, ARKK is “underperforming” (and that’s being generous).

But back to her big sale. Cathie unloaded 1,091,997 shares of SoFi this past week, right after SoFi’s earnings beat Wall Street’s expectations for the fourth straight quarter. Yep, SoFi dropped a 30% revenue jump and earned 5 cents a share instead of the expected 4 cents (aka a humble overachievement), and Cathie was like, “Cool, thanks! I’m out.” So here I am, wondering if she’ll be calling her broker in a few months with a sheepish, “Um, about that SoFi stock…”

Look, SoFi’s not just that “student loan refinancing” app your cousin uses. They’ve expanded into personal loans, financial services, and even their own tech platform (practically challenging the big banks at this point). And with CEO Anthony Noto hyping up 2025 as the “first year without headwinds. We have a stable economy, a declining rate environment,” Noto said, “and—get this—for the first time, the wind is at our backs.” For a company that’s had every regulatory roadblock thrown at it, that’s like a miracle. Some analysts are even calling for it to double this year.

So, what’s Mama Cathie doing instead? Oh, just putting her chips on “disruptive innovation” again. Her latest love affair is with Archer Aviation—a company working on flying taxis that has yet to make a single dollar (because it hasn’t launched...anything). Sure, flying taxis are fun in theory, but last I checked, they aren’t exactly hovering over the local airport. 

Oh and Trump’s win could actually mean smoother skies for private lenders like SoFi. If the new administration scales back federal student loan programs, SoFi might finally get a chance to do what it does best. Reminds me of when Miami Heat fans left the Finals game right before they came back and Ray Allen hit that infamous corner three at the buzzer. 

Now, don’t get me wrong, Cathie’s whole “disruptive innovation” schtick has made her a cult favorite (and given us hours of CNBC entertainment), but dumping SoFi right now? It feels a bit like her decision to bail on most of her Nvidia shares in 2021 before the company started to print billions like it was nothing. 

Look, maybe Mama Cathie thinks SoFi’s growth is capped, or maybe she’s just securing some gains (hey, she’s got a bad reputation to uphold). But for a company firing on all cylinders, growing its user base, and led by a CEO who actually delivers on profit promises, this sell-off feels like Cathie getting a little too trigger-happy with the “disrupt” button.

So, Cathie, if you’re reading this: you might’ve just ghosted one of the biggest fintech parties of the decade. And if SoFi keeps this up, something tells me you’ll be back—likely with a “Sorry, didn’t mean it” and a few more SoFi shares on order.

Stock.News does not have positions in companies mentioned.

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