Short-seller allegations and loan pool performance weigh on SoFi valuation

SoFi shares have sold off about 38% year-to-date. The decline is driven by a combination of valuation concerns, macroeconomic worries, and rising competition. Keefe Bruyette analyst Tim Switzer has trimmed his price target for SOFI stock from $20 to $17, citing investor concerns about the worsening performance of the company's securitizations. Switzer expects possible pressure on Q1 earnings from changes to how the company marks the assets on its balance sheet. These concerns are joined by allegations from short-seller Muddy Waters, which called the company a "financial engineering treadmill" and alleged accounting malpractices that inflated financials. Muddy Waters has called for more than $312 million in loans on the company's balance sheet to be restated.