Hedge funds are betting on Robinhood over SoFi Technologies, with 84 funds holding Robinhood in the first quarter of 2026 compared to 47 for SoFi, and short interest on Robinhood at just 4.88% of its float versus 14.7% for SoFi. Robinhood’s event contracts business surged to $156 million in revenue in its fiscal second quarter of 2026, up from roughly $10 million a year earlier, now accounting for 20% of transaction revenue and surpassing equities and crypto trading. Bernstein raised its price target on Robinhood from $130 to $160, projecting 64% annual growth in the event contracts segment, while the company reported adjusted earnings of $0.48 per share on $1.31 billion in revenue, beating analyst estimates. Crypto trading revenue fell 38% year over year, and total revenue growth slowed to 32%, raising questions about whether the prediction-market boom is sustainable beyond one-off events like the World Cup and midterm elections. Robinhood trades at 42 times forward earnings, a premium over SoFi’s 27 times, as institutional investors remain cautious on SoFi due to credit risks and loan-market headwinds despite record net interest income.
Robinhood Markets IncEvent contracts revenue surged to $156M, driving growth and analyst price target raise.
SoFi Technologies Inc.Hedge funds favor Robinhood over SoFi; SoFi faces credit risks and loan-market headwinds despite record NII.
