"Muddy Waters called SoFi Technologies a 'financial engineering treadmill' and alleged 'at least $312 million of unrecorded debt,' claiming the company uses 'GE Capital-style loan marks and Enron-esque off-balance-sheet structures' to dress up borrowings as revenue."
"SoFi Technologies fired back the same day, calling the report 'inaccurate and misleading' and said it 'demonstrates a fundamental lack of understanding of its financials and business.'"
"The most compelling counter-narrative comes directly from inside the company. SoFi Technologies CEO Anthony Noto bought 28,900 shares at a weighted average price of about $17 on March 17."
SoFi Technologies shares increased by 2% after a significant decline of 35% year-to-date. The stock faced pressure from allegations by Muddy Waters Research, which claimed unrecorded debt and questionable financial practices. Despite these challenges, the broader market's positive movement provided some support. SoFi's CEO, Anthony Noto, purchased shares on the same day the allegations were made, signaling confidence in the company's fundamentals. SoFi responded to the allegations, labeling them as inaccurate and misleading, and indicated potential legal action against Muddy Waters.
Read at 24/7 Wall St.
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