NEW YORK, March 25, 2026, 08:36 EDT
SoFi Technologies dropped roughly 2.7% premarket Wednesday, trading down to $16.70. Investors continued to digest a short-seller’s report despite Mizuho stepping in to back the company, maintaining its Outperform rating—the equivalent of a buy—and sticking with a $38 price target.
The stakes are higher this time; this isn’t your standard earnings disappointment or a simple guidance tweak. At the core: SoFi’s handling of a contested $312 million loan sale and its method for valuing portions of its loan book. Those issues strike at the heart of SoFi’s efforts to shift toward a steadier, fee-driven model—no small feat after branching out from its roots in student-loan refinancing to now include personal loans, mortgages, investing, and payments.
On March 17, Muddy Waters Research, a short seller that benefits from dropping shares, alleged SoFi was carrying at least $312 million in undisclosed debt. SoFi’s stock promptly slid, tumbling as much as 6.5% by the end of the session, according to Reuters.
SoFi pushed back, labeling the report “factually inaccurate and misleading” and saying it sees the note as an attempt to deceive investors. The company added that it’s considering legal steps. SoFi Investors
StreetInsider, citing a Tuesday note from Mizuho, said analyst Dan Dolev believes Muddy Waters’ claims “could likely be refuted using SoFi’s public disclosures.” According to the report, Dolev highlighted SoFi’s earlier description of the contentious JPMorgan deal as a sale of senior secured loans at par, saying a transaction like that would need a true-sale opinion—a legal assessment that the assets have been sold, not just posted as collateral—especially for a bank under heavy regulation. StreetInsider.com
Chief Executive Anthony Noto stepped in as shares slipped. According to SEC filings, Noto picked up 28,900 shares on March 17 at an average price of $17.3189. Earlier, on March 2, he had already snapped up 56,000 shares at an average of $17.8842.
SoFi’s January quarterly report showed fourth-quarter profit climbing, thanks to a surge in loan demand and brisk expansion in its fee-driven segments. According to Reuters, financial-services revenue jumped 78% to $456.7 million, while total loan originations set a new high at $10.5 billion. Noto pointed to members’ financial health as “remained strong.” Reuters
SoFi entered 2026 riding a much hotter streak than several fintech rivals. Its stock jumped roughly 70% in 2025, far ahead of Affirm’s 22% gain, according to Reuters. Block, on the other hand, dropped over 23%.
The scope of the dispute could keep growing. Muddy Waters has taken aim at SoFi’s charge-off rates—a metric tracking loans lenders write off—and at the company’s student-loan discount rates. If investors stay unconvinced that these accounting issues are resolved, the stock may not shake off the pressure after just one short seller’s report.
The standoff drags on. SoFi’s CEO continues snapping up shares, and there’s still a bullish call from at least one Wall Street analyst out there, but early trading on Wednesday made it clear: investors aren’t satisfied with just rebuttals.
