SoFi Technologies (SOFI) shares remain in focus today after the San Francisco-headquartered neobank issued an official response to Muddy Waters’ “inaccurate” short report. At its intraday peak, SOFI was seen trading just under its 20-day moving average (MA), indicating a bullish breakout may be brewing under the surface.
While SoFi stock is still down nearly 36% year-to-date, the aggressive rebuttal of Muddy Waters’ accusations suggests the momentum may soon shift back in favor of the bulls.
Does It Warrant Buying SoFi Stock Today?
In its response, SOFI slammed Muddy Waters, saying it lacks a clear understanding of its financial statements.
According to the firm’s management, the short seller’s own disclosure revealed an intent to cover its position immediately upon publication, signaling the accusations were tactical in nature — aimed at creating “panic liquidity” — not a genuine fundamental critique.
By reaffirming its commitment to generally accepted accounting principles (GAAP) standards and its status as a highly regulated bank holding company, SoFi’ rebuttal provided a much-needed sense of security to its investors.
It’s bullish for SOFI shares because the focus may now shift from unverified claims of “financial engineering” back to the fintech’s record 2025 performance, including its first full year of GAAP profitability.
CEO Anthony Noto Has Loaded Up on SOFI Shares
SoFi looks attractive at 29x forward earnings as CEO Anthony Noto doubled down on his conviction, buying more than $1 million worth of company shares this week.
This skin in the game is a powerful psychological catalyst for SOFI stock.
When a top executive buys a significant amount of shares personally, especially following a steep decline, it signals to the market that leadership believes the current valuation is a bargain.
For investors, Noto’s aggressive buying serves as a “vote of confidence” that SoFi’s fundamentals remain strong, providing a floor for its stock during this period of high volatility.
What’s the Consensus Rating on SoFi Technologies?
Wall Street analysts also seem to believe that the year-to-date selloff in SOFI shares is largely overdone.
While the consensus rating on SoFi Technologies remains at “Hold," the mean target of about $27 signals potential upside of more than 50% from here.
This article was created with the support of automated content tools from our partners at Sigma.AI. Together, our financial data and AI solutions help us to deliver more informed market headline analysis to readers faster than ever.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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