Publications
Publications
- June 2024
- HBS Case Collection
Accounting for Loans at SoFi Technologies
By: Joseph Pacelli and Michael Norris
Abstract
At the release of its first quarter earnings report on May 1, 2023, digital bank SoFi beat its earnings guidance by 25%. On May 2, Wedbush Securities analyst David Chiaverini issued a report downgrading the stock. A second downgrade followed from Chiaverini on May 15. His analysis focused on how SoFi accounted for loans, and how that differed from its peers. After a sharp drop in the wake of Chiaverini’s reports, SoFi’s stock recovered and surpassed its pre-May level. What should investors believe?
Keywords
Accounting; Banks and Banking; Financing and Loans; Valuation; Stocks; Banking Industry; United States
Citation
Pacelli, Joseph, and Michael Norris. "Accounting for Loans at SoFi Technologies." Harvard Business School Case 124-057, June 2024.