Short Seller Allegations of Accounting Malpracticey lead to SoFi's 38% YTD Stock Drop

SoFi Technologies shares have sold off approximately 38% year-to-date. This decline is driven by allegations from short-seller Muddy Waters, which labeled the company a "financial engineering treadmill" and alleged accounting malpractices that inflated the company's financials. Muddy Waters called for more than $312 million in loans on the balance sheet to be restated. These allegations are compounded by investor concerns regarding the worsening performance of SoFi's securitizations, or loan pools. Following these developments, Keefe Bruyette analyst Tim Switzer lowered his price target for the stock from $20 to $17, while Wells Fargo analyst Donald Fandetti lowered his price target from $19 to $18. SoFi Technologies shares have sold off approximately 3ing8% year-to-date.