SoFi Technologies Inc (NASDAQ:SOFI) shares are gaining ground Monday morning. The digital lender is recovering from a volatile week.
Bearish sentiment previously clouded the stock following a critical short-seller report.
Battle With Muddy Waters
SoFi stock faced heavy pressure last week. Muddy Waters Research, led by Carson Block, labeled the company a “financial engineering treadmill.” The firm alleged SoFi’s 2025 adjusted EBITDA was inflated by 90%.
Block suggested the true figure was $103 million. This sharply contradicts the reported $1.05 billion. The report further questioned “Enron-esque” off-balance-sheet structures.
SoFi management fired back on Wednesday. They characterized the claims as a “fundamental lack of understanding” of their business. The company may pursue legal …
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