Why SoFi Stock Plummeted 32% in the First Half of 2026

SoFi Technologies stock dropped 32% in H1 2026 despite strong business fundamentals, including 41% revenue growth and record loan originations. The decline was triggered by a short-seller report from Muddy Waters alleging accounting irregularities, combined with an expensive valuation at 41x trailing earnings that makes the stock vulnerable to any negative news. While core lending and member acquisition remain robust, the underperforming Tech Platform segment and premium valuation have weighed on investor sentiment.