SoFi Shares Recover in April Following Geopolitical Stress and Muddy Waters Short Report

SoFi Technologies experienced a double-digit valuation pullback in March, with shares falling 10.6% as investors shifted toward risk-off assets. This decline outpaced broader market indices, as the S&P 500 and Nasdaq Composite fell 5.1% and 4.8%, respectively, during the same period. The sell-off was triggered by a combination of macroeconomic instability and company-specific headwinds. Geopolitical volatility intensified following joint U.S. and Israeli strikes against Iran, prompting a general retreat from high-growth fintech assets. Adding to the pressure, Muddy Waters Research released a critical report on March 17. The short seller alleged that SoFi engaged in financial engineering and improper accounting, claiming the company misstated at least $312 million in unrecorded debt. Muddy Waters further asserted that SoFi's actual personal loan charge-off rate was approximately 6.1%, significantly higher than the 2.89% reported by the firm. SoFi has vigorously denied these allegations, describing the report as factually inaccurate and designed to deceive investors. The company stated that the research showed a fundamental misunderstanding of its business model and indicated it is exploring potential legal action against Muddy Waters. Shares have begun to recover in early April, rising 3.9% alongside a general market rebound as tensions in Iran ease. Investors are now looking toward April 29, when SoFi is scheduled to report its first-quarter financial results.