SoFi Shares Drop 1.5% After Muddy Waters Report

SoFi Technologies Inc., the digital finance company, saw its shares decline about 1.5 percent on Tuesday, closing at $17.37, amid investor reactions to a short seller report and broader concerns in the credit markets. The drop followed a period of strong financial performance for the firm, which reported record quarterly revenue exceeding $1 billion for the fourth quarter of 2025, even as its stock has fallen 37 percent year to date.

The immediate catalyst for Tuesday's decline was a report from the short-selling firm Muddy Waters Capital, which questioned SoFi's accounting practices. The report alleged that the company's actual personal loan chargeoff rate stood at 6.1 percent, higher than the 2.9 percent SoFi reported, and raised issues about its balance sheet management, fair-value processes for loans, and shareholder dilution. Shares initially fell as much as 6 percent after the report's release but recovered most losses by the close. Trading volume surged to 157.5 million shares, well above the three-month average of 59 million.

Adding to the pressure, SoFi's stock has been caught in ripples from a decision by JPMorgan Chase to tighten lending standards for private credit...