Are bonds based on burrito orders next after Klarna and DoorDash’s partnership?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 29 2025
0mins
Should l Buy SOFI?
Source: MarketWatch
Emerging Trends in Bond Markets: Wall Street is increasingly interested in bonds that are backed by unconventional cash flows, such as those from data centers, student loans, and fast-food franchise payments.
Potential for New Securitization: There is a possibility that even everyday transactions, like lunch orders, could be securitized as part of this trend in the bond market.
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Analyst Views on SOFI
Wall Street analysts forecast SOFI stock price to rise
14 Analyst Rating
5 Buy
6 Hold
3 Sell
Hold
Current: 16.700
Low
18.00
Averages
28.31
High
38.00
Current: 16.700
Low
18.00
Averages
28.31
High
38.00
About SOFI
SoFi Technologies, Inc. is a member-centric, one-stop shop for digital financial services. The Company, through its lending and financial services products, allows members to borrow, save, spend, invest and protect their money. The Company's segments include Lending, Technology Platform and Financial Services. The Lending segment offers personal loans, student loans, home loans and related servicing to help its members with a variety of financial needs. Its platform supports the full transaction lifecycle, including credit application, underwriting, approval, funding and servicing. The Technology Platform segment provides services through a diversified suite of offerings which include an event and authorization platform accessed via application programming interfaces, a cloud-native digital and core banking platform and services related to both platforms. The Financial Services segment offers a suite of financial services solutions, including SoFi Money and SoFi Invest.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
SoFi Technologies Revenue Soars 133% with Innovative Cross-Border Payments
- Significant Customer Growth: SoFi Technologies ended 2025 with nearly 13.7 million customers, reflecting a 133% revenue increase over three years, indicating strong performance and rising market demand in the digital banking sector.
- Innovation-Driven Product: SoFi partnered with payments startup Lightspark to introduce cross-border payment capabilities, leveraging the Bitcoin Lightning Network for fast and low-cost transactions, thereby enhancing users' financial management tools.
- Cost Savings for Users: In 2024, $138 billion in remittances were sent from the U.S. to India, with traditional services charging over 5% in fees; SoFi's new feature is expected to save users significant costs, boosting its competitive edge in the market.
- Bitcoin Application Outlook: SoFi's innovative move not only showcases its openness to new technologies but also signals the practical application potential of Bitcoin in finance, suggesting an upcoming evolutionary phase for Bitcoin as a medium of exchange.
See More
Impact of Sports Betting on Household Finances
- Surge in Betting Expenditure: The American Gaming Association estimates that legal sports betting for this year's NCAA men's and women's basketball tournaments will reach $3.3 billion, marking a 54% increase over the past three years, indicating a rapid rise in sports betting participation, which may strain household financial stability.
- Deteriorating Credit Health: A report from the New York Federal Reserve highlights an increase in credit delinquencies in states with legalized betting, particularly among those under 40, suggesting that gambling may significantly impact young consumers' financial health and lead to higher bankruptcy risks.
- Declining Credit Scores: According to FICO, the national average credit score has dropped to 714, down two points from last year, primarily due to the resumption of student loan and mortgage delinquency reporting, reflecting an overall deterioration in consumer credit health.
- Economic Divergence: While some consumers face worsening credit conditions, FICO also notes a growing number of consumers exhibiting strong credit behaviors at both ends of the scoring spectrum, indicating a K-shaped recovery in the economy, where some borrowers are experiencing increased financial pressure.
See More
SoFi Faces Short Seller Report Fallout
- Short Seller Allegations: Muddy Waters Research released a report alleging SoFi engages in misleading accounting practices, which could lead to restated financials and an SEC investigation, posing a significant threat to the company's reputation and operations if proven true.
- Stock Price Decline: SoFi's stock has fallen to $16.70, down nearly 50% from its all-time high set in 2025, reflecting market concerns over the company's future profitability and potentially leading to further erosion of investor confidence.
- CEO Stock Purchase: CEO Anthony Noto purchased approximately $200 million worth of shares following the report's release, indicating confidence in the company's future; however, it remains to be seen whether this move will effectively boost market sentiment.
- Strong Deposit Growth: Despite facing short-selling pressure, SoFi added $4.6 billion in deposits last quarter, bringing the total to nearly $38 billion, demonstrating its ability to attract customers in a high-interest environment and indicating potential for future business growth.
See More
SoFi Faces Short Seller Allegations, Stock Plummets
- Short Seller Allegations: Muddy Waters Research has released a report alleging that SoFi's personal lending business is in serious trouble, which could lead to restated financials and an SEC investigation; if proven true, this could have a significant negative impact on the company.
- Rising Loan Risks: The report claims that SoFi's delinquency rate is closer to 6.1%, significantly higher than the reported 2.89%, indicating potential flaws in the company's risk management practices that could undermine investor confidence.
- Insider Buying Signal: CEO Anthony Noto purchased approximately $200 million worth of SoFi stock following the report's release, signaling confidence in the company's future; however, this move also raises questions about the company's financial health.
- Market Reaction: SoFi's stock has fallen below $20, down nearly 50% from all-time highs set in 2025, reflecting market uncertainty regarding the company's future prospects, prompting investors to carefully assess risks and opportunities.
See More
Muddy Waters Short Report on SoFi Raises Concerns
- Shorting Rationale: Muddy Waters Research published a 28-page short report accusing SoFi of improper accounting practices and a complex web of off-balance-sheet transactions that distort the company's actual performance, posing significant risks to investors.
- Fair Value Concerns: SoFi marks its loans to fair value each quarter using discounted cash flow analysis, but Muddy Waters argues that its methodology is misleading, making EBITDA appear hundreds of millions of dollars better than it truly is, which affects investor perceptions of financial health.
- Underestimated Charge-Off Rates: SoFi reported a personal loan net charge-off rate of 2.80%, yet Muddy Waters claims this figure does not account for delinquent loans sold within 120 days, suggesting the actual charge-off rate could be closer to 6%, raising concerns about credit risk assessment.
- Management Incentive Issues: Muddy Waters alleges that SoFi's management has engaged in financial engineering to boost performance for bonuses, with CEO and CFO extracting over $58 million through prepaid variable forward contracts, potentially impacting corporate governance and transparency.
See More
Muddy Waters Accuses SoFi of Financial Misrepresentation
- Allegations of Financial Misrepresentation: Muddy Waters asserts that SoFi employs excessively low charge-off and discount rates in calculating fair value gains on its loan portfolios, which artificially inflates its EBITDA by hundreds of millions, undermining investor confidence in the company's financial health.
- Loan Default Rate Concerns: SoFi reported a personal loan net charge-off rate of 2.80% in Q4 2025, but Muddy Waters claims the actual rate could be closer to 6%, which would significantly impact the company's profitability and market reputation.
- Capital Structure Risks: Muddy Waters highlights that SoFi has $312 million of unrecorded debt in its loan platform business, and to attract investors, the company must provide loss protection, making its capital structure more fragile and potentially exposing it to liquidity risks in the future.
- Management Incentive Issues: The report indicates that SoFi's management has extracted over $58 million through prepaid variable forward contracts, raising concerns about conflicts of interest and the integrity of corporate governance due to the use of complex financial engineering to secure performance bonuses.
See More
SoFi Technologies Revenue Soars 133% with Innovative Cross-Border Payments
- Significant Customer Growth: SoFi Technologies ended 2025 with nearly 13.7 million customers, reflecting a 133% revenue increase over three years, indicating strong performance and rising market demand in the digital banking sector.
- Innovation-Driven Product: SoFi partnered with payments startup Lightspark to introduce cross-border payment capabilities, leveraging the Bitcoin Lightning Network for fast and low-cost transactions, thereby enhancing users' financial management tools.
- Cost Savings for Users: In 2024, $138 billion in remittances were sent from the U.S. to India, with traditional services charging over 5% in fees; SoFi's new feature is expected to save users significant costs, boosting its competitive edge in the market.
- Bitcoin Application Outlook: SoFi's innovative move not only showcases its openness to new technologies but also signals the practical application potential of Bitcoin in finance, suggesting an upcoming evolutionary phase for Bitcoin as a medium of exchange.
See More
Impact of Sports Betting on Household Finances
- Surge in Betting Expenditure: The American Gaming Association estimates that legal sports betting for this year's NCAA men's and women's basketball tournaments will reach $3.3 billion, marking a 54% increase over the past three years, indicating a rapid rise in sports betting participation, which may strain household financial stability.
- Deteriorating Credit Health: A report from the New York Federal Reserve highlights an increase in credit delinquencies in states with legalized betting, particularly among those under 40, suggesting that gambling may significantly impact young consumers' financial health and lead to higher bankruptcy risks.
- Declining Credit Scores: According to FICO, the national average credit score has dropped to 714, down two points from last year, primarily due to the resumption of student loan and mortgage delinquency reporting, reflecting an overall deterioration in consumer credit health.
- Economic Divergence: While some consumers face worsening credit conditions, FICO also notes a growing number of consumers exhibiting strong credit behaviors at both ends of the scoring spectrum, indicating a K-shaped recovery in the economy, where some borrowers are experiencing increased financial pressure.
See More
SoFi Faces Short Seller Report Fallout
- Short Seller Allegations: Muddy Waters Research released a report alleging SoFi engages in misleading accounting practices, which could lead to restated financials and an SEC investigation, posing a significant threat to the company's reputation and operations if proven true.
- Stock Price Decline: SoFi's stock has fallen to $16.70, down nearly 50% from its all-time high set in 2025, reflecting market concerns over the company's future profitability and potentially leading to further erosion of investor confidence.
- CEO Stock Purchase: CEO Anthony Noto purchased approximately $200 million worth of shares following the report's release, indicating confidence in the company's future; however, it remains to be seen whether this move will effectively boost market sentiment.
- Strong Deposit Growth: Despite facing short-selling pressure, SoFi added $4.6 billion in deposits last quarter, bringing the total to nearly $38 billion, demonstrating its ability to attract customers in a high-interest environment and indicating potential for future business growth.
See More
SoFi Faces Short Seller Allegations, Stock Plummets
- Short Seller Allegations: Muddy Waters Research has released a report alleging that SoFi's personal lending business is in serious trouble, which could lead to restated financials and an SEC investigation; if proven true, this could have a significant negative impact on the company.
- Rising Loan Risks: The report claims that SoFi's delinquency rate is closer to 6.1%, significantly higher than the reported 2.89%, indicating potential flaws in the company's risk management practices that could undermine investor confidence.
- Insider Buying Signal: CEO Anthony Noto purchased approximately $200 million worth of SoFi stock following the report's release, signaling confidence in the company's future; however, this move also raises questions about the company's financial health.
- Market Reaction: SoFi's stock has fallen below $20, down nearly 50% from all-time highs set in 2025, reflecting market uncertainty regarding the company's future prospects, prompting investors to carefully assess risks and opportunities.
See More
Muddy Waters Short Report on SoFi Raises Concerns
- Shorting Rationale: Muddy Waters Research published a 28-page short report accusing SoFi of improper accounting practices and a complex web of off-balance-sheet transactions that distort the company's actual performance, posing significant risks to investors.
- Fair Value Concerns: SoFi marks its loans to fair value each quarter using discounted cash flow analysis, but Muddy Waters argues that its methodology is misleading, making EBITDA appear hundreds of millions of dollars better than it truly is, which affects investor perceptions of financial health.
- Underestimated Charge-Off Rates: SoFi reported a personal loan net charge-off rate of 2.80%, yet Muddy Waters claims this figure does not account for delinquent loans sold within 120 days, suggesting the actual charge-off rate could be closer to 6%, raising concerns about credit risk assessment.
- Management Incentive Issues: Muddy Waters alleges that SoFi's management has engaged in financial engineering to boost performance for bonuses, with CEO and CFO extracting over $58 million through prepaid variable forward contracts, potentially impacting corporate governance and transparency.
See More
Muddy Waters Accuses SoFi of Financial Misrepresentation
- Allegations of Financial Misrepresentation: Muddy Waters asserts that SoFi employs excessively low charge-off and discount rates in calculating fair value gains on its loan portfolios, which artificially inflates its EBITDA by hundreds of millions, undermining investor confidence in the company's financial health.
- Loan Default Rate Concerns: SoFi reported a personal loan net charge-off rate of 2.80% in Q4 2025, but Muddy Waters claims the actual rate could be closer to 6%, which would significantly impact the company's profitability and market reputation.
- Capital Structure Risks: Muddy Waters highlights that SoFi has $312 million of unrecorded debt in its loan platform business, and to attract investors, the company must provide loss protection, making its capital structure more fragile and potentially exposing it to liquidity risks in the future.
- Management Incentive Issues: The report indicates that SoFi's management has extracted over $58 million through prepaid variable forward contracts, raising concerns about conflicts of interest and the integrity of corporate governance due to the use of complex financial engineering to secure performance bonuses.
See More
