Chit Chat Stocks SoFi Short Report Allegations; Micron's Insane Numbers; Nvidia's $1 Trillion Revenue Projection
Mar 20, 2026
They dig into allegations from a short report claiming loan accounting and related-party sales irregularities at a fintech. They break down how to read short reports and audit risk. They react to Micron’s staggering revenue jump and industry capex implications. They discuss Nvidia’s bold AI revenue projection and what it could mean for cloud spending and market dynamics.
AI Snips
Chapters
Transcript
Episode notes
Wait For Management Response To Short Reports
- Read and digest short seller reports before reacting, then wait for management's response before making decisions.
- Ryan advises not to sell immediately on release day and to use the firm's reply and time to evaluate the claims carefully.
SoFi Charge Offs May Be Masked By Loan Sales
- Muddy Waters alleges SoFi understates personal loan net charge-offs by selling loans near the charge-off threshold and parking defaults off-balance-sheet.
- They estimate true net charge-offs ~6.1% versus SoFi's reported 2.8%, which directly inflates day-one fair-value gains.
SoFi Recognizes Day One Gains On Student Loans
- Muddy Waters claims SoFi recognizes immediate paper profits on student loans by booking day-one fair-value gains at origination.
- These aggressive marks inflate reported earnings before any payments are received on the $12.9B student loan portfolio.