Robinhood shares are taking a drastic blow at the moment and traders are having to cope with a deep selloff for the reason that final Robinhood earnings announcement. The fourth-quarter efficiency of the buying and selling platform confirmed dismal cryptocurrency gross sales of solely $221 million, a 38 % decline on a year-over-year foundation and beneath analyst forecasts by roughly 27 million. As of the date of this writing, Robinhood inventory is at the moment buying and selling at $71.12, which is sort of half of the October 2025 excessive. Wall Road analysts are break up on whether or not it is a Robinhood inventory purchase alternative, however the Robinhood inventory forecast exhibits it may very well be a great inventory sooner or later to those that can afford the volatility.
HOOD Inventory: Earnings Miss Shakes Investor Confidence
Crypto Winter Takes Toll on Income Efficiency
The corporate launched its earnings report on February 10, exhibiting complete income of $1.28 billion, which represents a 27% year-over-year enhance however fell wanting the $1.32 billion analysts anticipated. Cryptocurrency income served as the first drag on efficiency, coming in at $221 million and representing a 38% decline in comparison with the identical interval final 12 months. Bitcoin’s 23% year-to-date plunge in 2026 has impacted the platform considerably, with crypto accounting for roughly 20% of complete income proper now.
Shiv Verma, the corporate’s Chief Monetary Officer had this to say:
“2025 was a document 12 months the place we set new highs for web deposits, Gold Subscribers, buying and selling volumes, revenues, and income, and we closed the 12 months with a robust This autumn. 2026 is off to a great begin, and we’re extremely enthusiastic about our plan and momentum for the 12 months forward as we give attention to transport nice merchandise for patrons and driving worthwhile development for shareholders.”
Regardless of the crypto miss, earnings per share beat expectations at 66 cents versus the 63 cents analysts predicted. The determine fell 35% year-over-year, although a 47-cent tax profit inflated This autumn 2024 outcomes, so the comparability isn’t precisely apples to apples.
Inventory Faces Heavy Market Strain
Robinhood inventory at the moment trades down 8.79% on the time of writing, and the selloff has intensified for the reason that begin of 2026. Buyers are rising more and more involved concerning the platform’s dependence on risky crypto and fairness markets. Transaction-based income from choices, equities, and in addition crypto made up 52% of complete income in 2025, which makes the corporate notably susceptible to market downturns.
Wednesday’s selloff noticed shares plummet as a lot as 13% throughout buying and selling, extending a virtually 34% decline for the reason that begin of 2026. Robinhood inventory at the moment has fallen virtually 50% from its all-time excessive closing worth, elevating questions on whether or not present ranges symbolize a gorgeous entry level.
Evaluation Reveals Path to Potential Restoration
Robinhood inventory worth evaluation from Wall Road reveals a consensus worth goal close to $127, implying round 64% upside from present ranges proper now. A number of analysts lowered their targets by 10% to twenty% after the Robinhood earnings report dropped, however the common of lately up to date targets stands at roughly $134, suggesting potential good points of roughly 72% for traders keen to carry by means of volatility.
Full-year 2025 income grew a formidable 52%, whereas adjusted working bills and share-based compensation elevated simply 22%. The corporate’s adjusted EBITDA margin reached 56.4%, up 800 foundation factors in comparison with 2024. Internet deposits surged 35% as prospects continued including funds, and administration targets over 20% web deposit development for 2026.
The CFO additionally emphasised the corporate’s strategic priorities:
“First, we need to win with lively merchants. Second, we need to win within the pockets share. Third, we need to be world and we need to be institutional.”
Purchase Alternative or Falling Knife?
The query on traders’ minds proper now could be whether or not Robinhood inventory at the moment represents a Robinhood inventory purchase alternative after its large selloff. Prediction markets have doubled buying and selling volumes in This autumn, and the corporate calls this their prime development precedence going ahead. Choices buying and selling income has additionally risen for 9 consecutive quarters.
Nevertheless, dangers stay substantial for Robinhood inventory at the moment. Ongoing crypto market weak point and in addition potential Federal Reserve price cuts may strain web curiosity income down the road. The corporate’s publicity to transaction-based income means continued weak point in crypto and fairness markets will probably affect efficiency additional.
CEO Vlad Tenev emphasised the corporate’s aggressive positioning. He stated:
“We would like lively merchants to really feel like they’re at an obstacle buying and selling anyplace however Robinhood Markets, Inc.”
For these contemplating a Robinhood inventory purchase, Robinood inventory worth evaluation suggests the $60 to $75 vary could supply an accumulation zone for long-term traders. The earnings report confirmed strong fundamentals, together with document funded accounts and Robinhood Gold subscribers reaching 4.2 million.
