By Nate Wolf
Buzzy fintech stocks were falling sharply Tuesday, as the industry rally gave out heading into the final weeks of summer.
SoFi Technologies was falling 3.8% in afternoon trading, Robinhood Markets was down 5.1%, and Coinbase Global was dropping 4.4%. Those weren't the only stocks in the category to take losses: ARK Invest's Ark Fintech Innovation exchange-traded fund, which holds more than 40 equities, was down 3.2%.
There wasn't an obvious catalyst for the selloff, which came during a sleepy week when many fund managers are setting their out-of-office notes and heading to the beach. Those left behind on Wall Street seemed to rotate away from the broader tech sector Tuesday. The Nasdaq Composite index fell more than 1.3%.
SoFi, Coinbase, and Robinhood have been among the hottest investments in the index this year. Shares of Robinhood have soared 193% this year and 451% over the last 12 months, benefiting from a spring retail-trading surge, new cryptocurrency product offerings, and a wave of investor enthusiasm. SoFi, meanwhile, has gained 51% in 2025 and 216% in the past year, with the company's revenue growth accelerating in the second quarter.
Coinbase has been the laggard of the trio -- which isn't really saying much. The stock has climbed a mere 23% this year and 55% in the past 52 weeks.
Still, there have been signs the fintech rally was slowing in recent weeks. Coinbase ended July with a second-quarter earnings print that fell short of Wall Street's expectations, sending the stock lower. Shares of SoFi and Robinhood, meanwhile, have continued to rise since mid-July, but at a far more subdued pace than earlier in the year.
Whether due to profit-taking, algorithmic trading, or investor skittishness around ever-growing valuations, all three fintech darlings finally gave out on Tuesday.
Write to Nate Wolf at nate.wolf@barrons.com
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(END) Dow Jones Newswires
August 19, 2025 14:31 ET (18:31 GMT)
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