Shares of Robinhood Markets Inc. (NASDAQ: HOOD), SoFi Technologies Inc. (NASDAQ: SOFI), and Webull Corp. (NASDAQ: BULL) are each on pace to close the week sharply lower despite two significant industry catalysts.
HOOD stock has fallen more than 6% this week, putting it on course for its worst weekly performance in a month, while SOFI and BULL have declined nearly 6% and 5%, respectively.
The losses come even as the Pattern Day Trader rule, which required margin account holders executing four or more day trades within five business days to maintain at least $25,000 in equity, was officially eliminated on Thursday.
Under the new regulatory framework, brokerages will rely on intraday margin requirements and risk-based monitoring rather than the longstanding minimum equity threshold.
Webull appears to have the most direct exposure to the PDT rule change, given that the company’s average account size sits just below $5,000, meaning a large portion of its customer base was likely constrained by the old restrictions.
Anthony Denier, U.S. chief executive of Webull, projected that transaction activity could increase by at least 20% over time following the rule change, calling it a significant opportunity for the broader industry.
“Retail investors have proven they are smart, resourceful, and capable of managing their own exposure,” Denier said, according to the Wall Street Journal.
Robinhood has also moved quickly to capitalize on the change, announcing it will remove existing PDT flags from customer accounts and allow users to trade without day-trading limits tied to the previous rule.
“No more $25K minimum, no more flags. Happy trading,” the company said in a post on X, signaling an aggressive push to attract active retail traders to its platform.
Robinhood Chief Brokerage Officer Steve Quirk, speaking at the Piper Sandler Global Exchange and Fintech Conference, pointed to already-elevated trading volumes heading into the rule change as a positive sign.
“I think in April we had our second-highest month in equity trading, option trading, highest month in futures, and in prediction markets,” Quirk said. “And in May it has been very strong.”
Goldman Sachs analyst James Yaro recently raised his price target on Robinhood to $105 from $95, maintaining a Buy rating, reflecting Wall Street’s optimism about the company’s growth trajectory.
SoFi, meanwhile, has been expanding its broader financial ecosystem, recently launching SoFi Coach, an AI-powered financial assistant designed to help users manage spending, debt and key financial decisions.
Beyond the PDT rule change, the anticipated SpaceX IPO is emerging as another major catalyst for retail brokerage platforms, with the offering expected to be one of the largest public debuts in market history.
Robinhood, SoFi, Fidelity, Charles Schwab and E*Trade are all expected to offer eligible retail investors access to SpaceX shares, with the debut generating significant interest tied to the company’s scale, brand recognition and CEO Elon Musk’s profile.
“Proud to support investment opportunities,” SoFi said in a post on X, sharing a link to its IPO access page as it actively courts customers ahead of the expected offering.
Historically, blockbuster IPOs have served as powerful customer acquisition events for retail brokerage platforms, drawing in new users and meaningfully increasing overall trading activity.
On Stocktwits, retail sentiment for both HOOD and SOFI was rated bullish amid high message volume, while BULL sentiment sat in bearish territory against low message volumes.
One Stocktwits user summarized the bull case for Robinhood bluntly, writing that with the PDT restriction removed and “the biggest IPO in history about to hit,” the platform is positioned as the go-to tool for retail traders.
Over the past year, HOOD shares have risen more than 21% and SOFI has surged more than 25%, while BULL stock has fallen approximately 41%, underscoring the divergence in investor confidence across the three platforms.
