SOFI’s Decline Has Retail Looking Elsewhere — Here’s The Rival Fintech Traders Prefer Right Now

• HOOD stock has outperformed SOFI stock in the latest quarter. 
• Retail sentiment around SOFI and HOOD were both ‘bearish’ at the time of writing.
• On Tuesday, Morgan Stanley hiked its rating of HOOD stock to ‘Overweight’ and increased its price target to $150, implying an upside of nearly 45% compared to its last close.

Shares of SoFi Technologies Inc. (SOFI) closed down more than 4% on Tuesday, clocking three consecutive sessions in the red. 

Retail investors are growing concerned over the company’s sustained decline, with some suggesting an alternative fintech stock as a better pick. 

Which Stock Does Retail Prefer Over SOFI?

Multiple retail investors on Stocktwits named Robinhood Markets Inc. (HOOD) as a better bet compared to SOFI stock. 

One user said, “$SOFI I love Robinhood instead of this.”

Another user said, “$SOFI dang $HOOD is a better stock.”

A third user said, “$SOFI HOOD being green again is the cherry on top.”

Another user said, “$SOFI Spy and hood is up a bit. Sofi still dead $HOOD $SPY.”

Retail sentiment around SOFI and HOOD were both ‘bearish’ at the time of writing.

Why Is HOOD Stock Rising?

HOOD stock’s recent rally can be attributed to its strong earnings results and growing Wall Street optimism over the company’s performance. 

On Tuesday, Morgan Stanley hiked its rating of HOOD stock to ‘Overweight’ and increased its price target to $150, implying an upside of nearly 45% compared to its last close.

The analyst believes the company’s expanding product lineup is paving the path for more avenues to monetize its 28 million customer base.

Meanwhile, the company posted its second-quarter (Q2) earnings results in late July, delivering an earnings per share of $0.62 that beat analyst consensus estimates, while revenue rose 32% year-over-year to a record $1.31 billion. Robinhood also hit a record $22 billion in net deposits, while total platform assets grew 32% year-over-year to $369 billion. 

SoFi Technologies, on the other hand, posted record Q2 earnings, beating analyst expectations with an adjusted EPS of $0.12 and adjusted net revenue of $1.2 billion. Despite the beat, the company’s shares have been declining as management kept profit forecasts flat, while rising Treasury yields have also been squeezing lender funding costs.

HOOD stock has outperformed SOFI stock in the latest quarter. 

Meanwhile, so far in 2026, both stocks have declined, with HOOD stock down about 10% year-to-date, while SOFI stock has declined nearly 38% in the same time. 

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