New York, March 18, 2026, 09:14 EDT
SoFi Technologies slipped in premarket trade on Wednesday, following news that Muddy Waters had taken a short position. The company responded, threatening potential legal action, saying Muddy Waters’ report was misleading. Shares last traded at $17.37, off 24 cents from the previous close. On Tuesday, when the short-seller’s report landed, the stock dropped as much as 6.5%.
The dispute has real weight for SoFi, a company straddling lending, financial services, and tech, especially after a standout fourth quarter. Back in January, SoFi posted record net revenue of $1.025 billion, marking its ninth consecutive GAAP profit. With that kind of track record, any fresh questions around its debt or loan accounting are especially unwelcome.
The timing comes as investors weigh which consumer fintech names might break out. Back in January, Citi highlighted SoFi, Affirm, and Block as potential winners if U.S. policymakers lean into affordability—an angle that’s kept these stocks under the spotlight, despite choppy valuations.
Muddy Waters, the short-selling firm, claimed SoFi is sitting on at least $312 million in unrecorded debt—borrowings it alleges haven’t been properly accounted for. SoFi fired back, calling those assertions “factually inaccurate and misleading,” and accused Muddy Waters of a “fundamental lack of understanding” regarding its disclosures and business operations. Reuters
The company expressed “strong confidence” in its financial reporting, emphasizing that disclosures follow both U.S. GAAP and SEC requirements. SoFi added it’s a bank holding company under Federal Reserve supervision, with its bank regulated by the Office of the Comptroller of the Currency. SoFi Investors
Chief Executive Anthony Noto picked up 28,900 shares on Tuesday, paying a weighted average of $17.3189 each, according to an SEC Form 4. That bumps his direct stake to 11,704,352 shares—about a $500,000 addition.
Noto took a sharply different line on Jan. 30 when SoFi put out its results. He called the fourth quarter “nothing short of exceptional.” That “one-stop shop” approach? According to Noto, it’s “scaling exactly as intended.” Membership jumped 35% to 13.7 million, while products shot up 37% to 20.2 million. SoFi Investors
Still, where the stock heads next could hinge on how fast SoFi responds with a more detailed rebuttal and if its funding and loan-accounting answers go far enough for investors. Valuation worries aren’t new here. Back in January 2025, KBW flagged SoFi’s valuation as “overstretched” and doubted the company could hit those 2026 goals. Reuters
