Why SoFi Technologies Stock Slipped Last Month

By Brett Schafer – Apr 6, 2026 at 2:10PM ESTKey PointsA short seller made harsh allegations against Sofi last month, driving its share price down. The company may be inflating the profitability of its lending business, but it is unclear whether the allegations are true today. Uncertainty over this short report should keep investors away from SoFi stock right now. Shares of SoFi Technologies (SOFI +2.40%) fell 10.6% in March, according to data from S&P Global Market Intelligence. The digital banking platform faced some heat when a prominent short seller published a report making severe allegations against SoFi's accounting practices. SoFi stock has been slipping for a while now, down 50% from its October 2025 highs. Here's why the stock slipped again in March of 2026, and whether investors should buy the stock right now. ExpandNASDAQ: SOFISoFi TechnologiesToday's Change(2.40%) $0.38Current Price$16.23Key Data PointsMarket Cap$20BDay's Range$15.91 - $16.4352wk Range$8.60 - $32.73Volume947KAvg Vol64MGross Margin61.06% A short report targeting SoFi's accounting Muddy Waters Research is a short-selling firm that has a history of publicly targeting hot stocks with scandalous allegations. In March, it decided to release its next target: SoFi. The firm said it was short SoFi and that it was using financial engineering to prop up its earnings to make them look stronger than they actually are. Specifically, the short-selling firm believes that SoFi's actual net charge-off rate (i.e., loans that are not expected to pay SoFi back) is 6.1% vs. its reported level of 2.89%. Next, it alleges that SoFi is booking loans as fee income, thereby disguising debt that should be on the balance sheet, while simultaneously inflating its loan fair value by using a discount rate that is too high relative to what the financial markets would set. SoFi, of course, denies all these claims. Personal loans are a huge part of its business, with the company originating $27.5 billion in 2025 alone. If the performance of these loans is significantly worse than what SoFi is reporting, that could put the company in big trouble, not just with its own financial statements, but with market regulators. Image source: Getty Images. Time to buy SoFi? SoFi has been growing strongly in recent years. Total members who use a SoFi product is 13.6 million, and growth is 35% year-over-year at the end of 2025. It is adding billions of deposits to its bank balance sheet, slowly taking share from the big banks that still hold trillions on their balance sheets. This gives it a long runway to keep stealing market share from here. The problem with any fast-growing lender is the quality of the loans it originates and sells to the market. SoFi has just over $10 billion in equity on its balance sheet. If its loan business is performing worse than it is currently telling the market, it may have to write down a significant portion of its book value in future years. Individual investors may have a personal opinion on SoFi's management, but the problem with analyzing this business is that we do not know today if Muddy Waters is right with this short report. For this reason, investors should avoid buying SoFi stock today. Read NextApr 3, 2026 •By Selena Maranjian1 Reason to Buy SoFi Stock After the Muddy Waters Short ReportMar 31, 2026 •By Prosper Junior BakinyIs SoFi a Fintech Winner or a 'Financial Engineering' Story?Mar 31, 2026 •By Jennifer SaibilCan SoFi Stock Reach $100 by 2030?Mar 30, 2026 •By Neil RozenbaumSoFi Just Fired Back at Short Seller With a $3.6 Billion Deal, and Meta and Cybersecurity Stocks Are Being Misjudged TooMar 26, 2026 •By Brett SchaferShort Sellers Are Targeting SoFi.

Should You Panic?Mar 25, 2026 •By Brett SchaferA Major Short-Seller Just Attacked SoFi. Here's Why the CEO Is Buying Hand Over FistAbout the AuthorBrett Schafer is a contributing Motley Fool stock market analyst covering consumer goods, financials, technology, and industrials. Brett is a self-taught investor and has hosted the Chit Chat Stocks podcast since 2018. He previously worked as a lab engineer for science laboratories. He holds a bachelor’s degree in mechanical engineering with minors in finance and mathematics from Washington State University. His lab work on Major League Baseball’s juiced ball problem was featured in The Wall Street Journal and other national outlets.TMFBrettSchaferX@CCM_BrettStocks MentionedSoFi TechnologiesNASDAQ: SOFI$16.22(+2.33%)+$0.37*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.