Shares of SoFi Technologies (NASDAQ: SOFI) closed down more than 4% on Tuesday, marking three consecutive sessions in negative territory.
Retail investors are growing increasingly concerned over the company’s sustained decline, with many turning their attention to a rival fintech stock as a more attractive alternative.
Multiple retail investors on Stocktwits named Robinhood Markets Inc. (NASDAQ: HOOD) as a better bet compared to SOFI stock, reflecting a clear shift in retail confidence.
One user stated, “$SOFI I love Robinhood instead of this,” while another posted, “$SOFI dang $HOOD is a better stock,” capturing the mood among frustrated SOFI holders.
A third user added, “$SOFI HOOD being green again is the cherry on top,” and a fourth noted, “$SOFI Spy and hood is up a bit. Sofi still dead $HOOD $SPY.”
Despite this retail frustration, sentiment around both SOFI and HOOD remained classified as “bearish” at the time of writing, according to Stocktwits data.
HOOD stock’s recent rally has been driven by strong earnings results and growing Wall Street optimism surrounding the company’s expanding business model.
On Tuesday, Morgan Stanley raised its rating on HOOD stock to “Overweight” and increased its price target to $150, implying an upside of nearly 45% compared to its last close.
The Morgan Stanley analyst believes the company’s expanding product lineup is paving the path for more avenues to monetize its 28 million customer base, a figure that underscores Robinhood’s significant market reach.
Robinhood’s second-quarter earnings, reported in late July, delivered earnings per share of $0.62, beating analyst consensus estimates, while revenue rose 32% year-over-year to a record $1.31 billion.
The company also hit a record $22 billion in net deposits during the quarter, with total platform assets growing 32% year-over-year to $369 billion, reinforcing confidence in its growth trajectory.
SoFi, by contrast, also posted record Q2 results, beating analyst expectations with an adjusted EPS of $0.12 and adjusted net revenue of $1.2 billion, yet its shares have continued to slide.
The disconnect between SoFi’s earnings beat and its falling stock price stems largely from management keeping profit forecasts flat, while rising Treasury yields have squeezed lender funding costs.
Year-to-date performance tells a stark story between the two companies, with HOOD stock down approximately 10% while SOFI stock has declined nearly 38% over the same period in 2026.
The divergence in performance has made Robinhood an increasingly attractive alternative for retail traders seeking fintech exposure without the downside pressure weighing on SoFi’s shares.
