$SOFI Short Report: A Question of Trust, Not Fear

I have read the new $SoFi Technologies Inc.(SOFI)$ short seller report.

1) I miss DataDInvesting

I guess this is why they hired Chris, as he could be writing a detailed response right now.

2) Fundamentally, this comes down to the trust in the management.

The short report made some serious allegations, and I am not going to recite all of them as many have already done so.

But if they are 100% true (they aren't), then the CEO Anthony Noto and CFO Chris Lapointe committed FRAUD. The allegations don't simply involve aggressive accounting, but clever and sophisticated legal manoeuvring to deceive the SEC, DOJ, lenders, credit investors, shareholders, convertible note investors, and the public.

This would imply lawsuits and prison time.

I have been following the company since 2021, and I am all but certain that the management didn't do such things.

A big clue here is that the short report compares SOFI to Enron and GE Capital.

When short sellers throw out such aggressive examples, they try to scare you, but in my eyes, they lose all credibility.

SOFI shareholders have been through this dance before.

Many of the same allegations have been recycled, and they always claim that SOON, the reality of bad loans will hit SOFI balance sheet or loan funding will dry up.

Yet that tomorrow never arrives.

Not during COVID, when millions of people lost jobs.

Not during the cost-of-living crisis, when people's disposable income decreased.

Not when Trump cancelled Biden's student loan moratorium.

Not when the Trade War caused a lot of uncertainty.

How many supposed balance sheet collapse catalysts do these bears need?

Whenever Sofi comes out with a new successful product, short seller reports follow.

When SOFI pivoted from student lending to consumer loans, bears promised huge losses.

Now they claim the Loan Platform Business is a fraud, and Sofi is not originating on behalf of others.

Watch when SoFIUSD Stablecoin gains traction and billions of volumes, they will claim fraud there.

I don't believe that all short sellers are bad, some of them do real and important research. However, in my experience, they are pessimists by nature and always look at everything from the worst angle possible, and often ignore the bigger picture.

If all you have is a hammer, everything looks like a nail.

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$SOFI Short Report: A Question of Trust, Not Fear

For SG users only, Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with unlimited trading on SG, HK, and US stocks, as well as ETFs.

Find out more here.

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