SoFi Technologies Shares Plunge 40% Amid Profit Inflation Allegations

SoFi Technologies' stock has plunged by 40% from its previous levels following intense selling pressure triggered by short-seller allegations. The decline stems from a report claiming the company inflated the profitability of its core lending business to mask its true financial health. However, the narrative is shifting as some analysts begin revisiting valuation models, suggesting the current price may not reflect the company's intrinsic value. These experts indicate that the significant sell-off could represent a potential buying opportunity for long-term investors. While the immediate sentiment remains volatile, the focus is turning toward whether the stock has been oversold. Investors are now closely monitoring for official management responses to stabilize the market valuation and restore transparency.