Muddy Waters targets SoFi with 28-page report as shares slide nearly 50% since November 2025

Short seller Muddy Waters released a 28-page report accusing SoFi of inflating earnings through what it called a “financial engineering treadmill.” Mainstream analysts have broadly shifted to a “hold” stance, questioning whether the company’s valuation fits its profile as a high-growth tech stock. SoFi shares have fallen nearly 50% since November 2025, yet the stock still trades at a forward price-to-earnings ratio of nearly 70 times. The episode has weighed on SoFi and pressured other high-valuation fintech names such as Robinhood.