[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  stock goat [@kylewhitegoat](/creator/twitter/kylewhitegoat) on x 29K followers Created: 2025-06-24 12:01:49 UTC $SOFI 🚨BREAKING NEWS 🚨 Bank of America reiterates sell rating of $XX 🤯 Mihir Bhatia has given his Sell rating due to a combination of factors related to SoFi Technologies’ accounting practices and valuation. One of the primary concerns is the aggressive nature of SoFi’s fair value accounting, which, while accepted, offers limited transparency and results in earlier income recognition. This approach contrasts with the Current Expected Credit Loss (CECL) accounting, which would significantly lower SoFi’s Common Equity Tier X (CET1) capital ratio by requiring upfront loan reserves, thereby reducing the carrying value of loans on the balance sheet. Additionally, Bhatia highlights that SoFi’s stock is currently trading at a rich valuation, priced at more than three times its tangible book value, which is a premium compared to other consumer finance companies. Although SoFi has shown impressive execution, particularly in its financial services segment, the lack of a catalyst for switching accounting methods and the susceptibility of earnings to economic downturns under fair value accounting contribute to the Sell rating. Bhatia acknowledges the growth in fee income as a positive factor but maintains that the current valuation appears relatively full in the near term.  XXXXXX engagements  **Related Topics** [accounting](/topic/accounting) [united states](/topic/united-states) [bank of](/topic/bank-of) [breaking news](/topic/breaking-news) [$sofi](/topic/$sofi) [goat](/topic/goat) [sofi technologies](/topic/sofi-technologies) [stocks financial services](/topic/stocks-financial-services) [Post Link](https://x.com/kylewhitegoat/status/1937481282520285583)
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stock goat @kylewhitegoat on x 29K followers
Created: 2025-06-24 12:01:49 UTC
$SOFI 🚨BREAKING NEWS 🚨
Bank of America reiterates sell rating of $XX 🤯
Mihir Bhatia has given his Sell rating due to a combination of factors related to SoFi Technologies’ accounting practices and valuation. One of the primary concerns is the aggressive nature of SoFi’s fair value accounting, which, while accepted, offers limited transparency and results in earlier income recognition. This approach contrasts with the Current Expected Credit Loss (CECL) accounting, which would significantly lower SoFi’s Common Equity Tier X (CET1) capital ratio by requiring upfront loan reserves, thereby reducing the carrying value of loans on the balance sheet.
Additionally, Bhatia highlights that SoFi’s stock is currently trading at a rich valuation, priced at more than three times its tangible book value, which is a premium compared to other consumer finance companies. Although SoFi has shown impressive execution, particularly in its financial services segment, the lack of a catalyst for switching accounting methods and the susceptibility of earnings to economic downturns under fair value accounting contribute to the Sell rating. Bhatia acknowledges the growth in fee income as a positive factor but maintains that the current valuation appears relatively full in the near term.
XXXXXX engagements
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