What Happened?

Shares of financial services company Robinhood (NASDAQ: HOOD) fell 8.5% in the morning session after the company reported fourth-quarter financial results that missed revenue expectations, driven by a sharp decline in cryptocurrency trading activity. While Robinhood's total revenue grew 27% year-over-year to about $1.28 billion, it fell short of analysts' forecasts, which were closer to $1.34 billion. The main cause of the shortfall was a significant 38% drop in revenue from crypto transactions, which landed at $221 million for the quarter. This decline was linked to weaker trading volumes in the crypto market. Although the company's earnings per share of $0.66 beat expectations, investors appeared to focus more on the revenue miss and the slowdown in the crypto business, which had been a key area of activity for the trading platform.

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What Is The Market Telling Us

Robinhood’s shares are extremely volatile and have had 58 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 3 days ago when the stock gained 6.3% on the news that several Wall Street analysts showed renewed confidence in the stock ahead of its upcoming earnings report. Specifically, Wolfe Research upgraded the stock to Outperform from Peer Perform and assigned a $125 price target. Adding to the positive sentiment, Cantor Fitzgerald reiterated its Overweight rating on the shares. KeyBanc also maintained an Overweight rating, even as it lowered its price target to $130 from $160. The firm noted that while there were concerns about the cryptocurrency market, the shares had been 'unfairly beaten up.' These actions occurred as the company prepared to release its quarterly financial results.

Robinhood is down 38% since the beginning of the year, and at $71.45 per share, it is trading 53.1% below its 52-week high of $152.46 from October 2025. Investors who bought $1,000 worth of Robinhood’s shares at the IPO in July 2021 would now be looking at an investment worth $2,052.

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