SOFI Stock Today, March 18: SoFi Rejects Muddy Waters Report, Eyes Legal Action

SOFI stock is front and centre today for Canadian investors as SoFi rejects the Muddy Waters report and considers legal action. The company disputes short seller allegations about accounting and credit quality while investors weigh near-term risk and long-term upside. We break down the trading setup, what management must prove next, and why the Mastercard stablecoin partnership could matter. With earnings due April 28, we outline data points Canadians should track before making moves on SOFI stock (SOFI).

Short Seller Clash: What We Know

SoFi said the Muddy Waters report is misleading and that it is weighing legal action, pushing back on accounting and credit quality claims. The response aims to stabilize confidence after heavier trading and a share slide tied to short seller allegations. Investors should expect more disclosure in upcoming filings and the Q1 call as the company works to restore trust. source

Focus areas include charge-offs in personal loans, fair-value marks on loans held for sale, warehouse capacity, and capital ratios. Clear trend data and third-party validation can help. Any gaps the Muddy Waters report highlighted will be revisited on the next update. For Canadians, consistency across 10-Q metrics will be key before adding to SOFI stock exposure.

Price, Volume, and Technical Picture

On the latest available print, SOFI stock closed at US$17.18, down 1.09% on the day, with volume at 80.72 million versus a 59.82 million average. The intraday range was US$17.16 to US$18.03, with a 52-week span of US$8.60 to US$32.73. Year to date it is down 37.44% but up 43.77% over one year.

RSI sits at 31.24, near oversold. MACD remains negative, while ADX at 43.09 signals a strong trend. Price is near the lower Bollinger Band at US$17.16, with ATR at 1.05 showing elevated volatility. For Canadians, consider staged entries and stop-loss discipline given wide bands and weak momentum until a base forms above the 20-day line.

Mastercard Stablecoin Partnership Outlook

The Mastercard stablecoin collaboration could expand payments and settlement options across SoFi’s platforms, supporting spend and interchange, and potentially boosting Galileo and Apex client flows. Execution timing and economics are key. If successful, the partnership may diversify revenue beyond lending and reduce earnings volatility over time. Early signs of issuer adoption would be a positive read-through. source

Watch for pilot launches, issuer sign-ups, and clear fee economics. Look for regulatory clarity on stablecoin use in Canada, cross-border settlement timelines, and early transaction volumes. We also want disclosures on risk controls, reserve management, and incremental margins. Tangible KPIs here could offset concerns raised by short seller allegations around loan marks.

Valuation, Street View, and Canada Angle

Trailing EPS is US$0.39 with a P/E of 44.05 and P/B near 2.02. Free cash flow per share remains negative, while ROE is 5.87% and debt-to-equity 0.17. Our Company Rating is C with a Sell tilt, while the Stock Grade is B with a HOLD suggestion. Tight execution and cash conversion are needed to justify the multiple.

Street views show 8 Buys, 4 Holds, and 2 Sells, with a 3.00 consensus. Next earnings is April 28, 2026. We want clarity on charge-offs, fair-value marks, and capital. Canadian investors should factor FX on a US listing, consider RRSP or TFSA account choice, and build SOFI stock positions gradually given volatility and headline risk.

Final Thoughts

Here is our game plan for SOFI stock. First, monitor the company’s formal response to the Muddy Waters report and any legal steps. We need clean credit metrics, fair-value transparency, and steady funding capacity. Second, track the technical setup. A firm hold above the 20-day average and improvement in RSI and MACD would signal momentum turning. Third, watch Mastercard stablecoin milestones for proof of revenue diversity. Fourth, anchor on earnings April 28 for updated guidance and KPIs. For Canadian investors, manage FX costs, use staged entries, and size positions modestly until visibility improves. Patience and strict risk controls matter while the story stabilizes.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.