Do you think SOFI is actually manipulating its accounting, or is Muddy Waters Research trying to profit from a drop in the stock?
Personally, I think Muddy Waters Research just wants to profit from a decline in the price of $SOFI, which is why their report was so strongly negative. SoFi is a regulated bank overseen by US authorities, including the Fed, so the scope for major accounting manipulation should be fairly limited. Even if certain shortcomings were found, they probably wouldn't be on the scale the report suggests.
A positive sign is also the CEO buying shares shortly after the report was published. To me, that shows management's confidence in the company's fundamentals. The CEO likely wouldn't have invested their own money in the stock if they knew of material problems.
This is just my opinion on the current situation, and I'd appreciate other viewpoints or any counterarguments.
Agreed. Also, there is strong support around $15, and if the allegations aren't proven, there would be significant upside potential.
The decline in SOFI's share price was caused by other factors long before Muddy Waters' short report.
If the accounting manipulation is proven true, the problem won't be limited to SoFi alone but will also implicate the regulators responsible for oversight (the Fed/OCC).
Thanks for the info
Bulios Black
This user has access to exclusive content, tools and features of the Bulios platform thanks to their subscription.
Because Muddy Waters shorted SoFi and closed the trade shortly after the report, it really comes across to me as targeted market manipulation. They find something, make a mountain out of a molehill... They’re protecting their short position...
I’m holding, and might even add a little more...