Robinhood Faces Market Risks Amid Stock Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 02 2026
0mins
Should l Buy HOOD?
Source: Benzinga
Robinhood Markets Inc. (HOOD) is experiencing a pre-market decline of 3.57%, hitting a 20-day low, as broader market indices like the Nasdaq-100 and S&P 500 are down 1.82% and 1.49%, respectively.
The recent downturn in Robinhood's stock is occurring amid significant market weakness, which has raised concerns about the company's future performance. Despite a remarkable 1,100% increase over the past three years, driven by strong sales and earnings growth, the current valuation risks and potential declines in trading volumes due to market conditions could impact investor sentiment. Analysts are cautious as the company has not yet faced a bear market since going public, and any downturn could lead to a correction in stock prices.
As Robinhood continues to expand its cryptocurrency offerings, the company is navigating a challenging market environment. The recent decline in stock price highlights the importance of maintaining strong performance metrics to meet high investor expectations, especially in light of potential market volatility.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy HOOD?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on HOOD
Wall Street analysts forecast HOOD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for HOOD is 156.24 USD with a low forecast of 130.00 USD and a high forecast of 181.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
16 Buy
4 Hold
0 Sell
Strong Buy
Current: 82.820
Low
130.00
Averages
156.24
High
181.00
Current: 82.820
Low
130.00
Averages
156.24
High
181.00
About HOOD
Robinhood Markets, Inc. is creating a financial services platform for everyone, regardless of their wealth, income, or background. It uses technology to provide access to the financial system. Its offerings include Brokerage, Robinhood Crypto, Custody, Robinhood Wallet, Robinhood Gold, and Robinhood Gold Card. Its Brokerage services include investing, options trading, fractional trading, recurring investment, access to investing on margin, fully paid securities lending, cash sweep, instant withdrawals, Robinhood retirement, 24-hour market, joint investing accounts, and event contracts. It also offers a variety of ways for its customers to grow their financial knowledge, including Robinhood Learn, In-App Education, Newsfeeds, Sherwood Snacks, and Crypto Learn and Earn. Its self-clearing system, order routing system, data platform, and other back-end infrastructure deliver the capabilities that allow its customers to focus on investing, saving and spending.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Robinhood's Q4 Earnings Preview Highlights Strong Growth Potential
- Strong Earnings Expectations: Analysts forecast Robinhood's Q4 2025 earnings per share at $0.63, reflecting a 16% increase from the previous year, indicating ongoing improvements in profitability that may attract more investor interest.
- Significant Revenue Growth: The company is expected to report quarterly revenue of $1.33 billion, a 31.7% increase from last year's $1.01 billion and a 4.7% rise from Q3, showcasing its competitive position and business expansion capabilities.
- Market Sentiment Shift: Short interest in Robinhood shares has decreased from 36.51 million to 33.86 million, representing only 4.45% of the company's float, suggesting a reduction in bearish sentiment that could support the stock price.
- Cryptocurrency Revenue Contribution: Notably, 36% of Robinhood's transaction-based revenue in Q3 came from cryptocurrencies, a figure that has steadily increased over recent quarters, highlighting the company's adaptability in emerging markets and future growth potential.
See More
Robinhood Earnings Preview: Potential for Recovery Amidst Stock Decline
- Stock Price Decline: Robinhood's shares have fallen 22% since the beginning of the year, facing significant pressure despite strong growth in recent quarters, likely linked to the drop in Bitcoin prices, as its cryptocurrency trading revenue surged by 300% last year.
- Valuation Normalization: Currently trading at a price-to-earnings ratio of around 37, Robinhood's valuation is more reasonable compared to its historical average of 70, which may attract investors given its rapid growth.
- Growing User Base: With a young and expanding user base, Robinhood continues to present a solid long-term investment opportunity despite short-term challenges, supported by ongoing user growth and market potential.
- Optimistic Earnings Outlook: The upcoming quarterly earnings report is expected to be strong, and if results exceed expectations, it could quickly reverse the stock's fortunes, making the current price drop a potentially good buying opportunity.
See More
Robinhood's Rating Upgraded to Outperform Ahead of Earnings
- Earnings Outlook: Robinhood is set to report its Q4 2025 earnings on February 10, with analyst Steven Chubak upgrading the firm's rating from 'Peerperform' to 'Outperform', indicating confidence in the company's future performance.
- Earnings Beat: In Q3 2025, Robinhood reported adjusted EPS of $0.61, surpassing the $0.53 consensus, while revenue reached $1.274 billion, exceeding forecasts of $1.21 billion, demonstrating strong profitability in a competitive market.
- Market Potential Analysis: Chubak's price target of $125 implies over 40% upside from the current stock price of $87.84, reflecting optimism regarding Robinhood's growth in prediction markets and improved retail engagement.
- Crypto Trading Challenges: Although a decline in crypto trading volume is expected to pose headwinds for Q4 2025 earnings, Chubak believes that positive surprises from prediction markets will enhance retail engagement in stocks and options trading.
See More
US Stocks Rebound as Tech Shares Recover
- Market Recovery: The S&P 500 Index rose by 0.46%, the Dow Jones Industrial Average increased by 0.09%, and the Nasdaq 100 climbed by 0.61%, indicating a rebound in the market driven by recovering tech and chipmaker stocks, reflecting investor confidence in economic growth.
- Mining Stocks Surge: Gold prices increased by over 1% and silver prices jumped more than 6%, boosting mining stocks with Coeur Mining up over 6% and Freeport McMoRan up more than 5%, suggesting rising investor demand for precious metals amid inflation concerns.
- Positive Earnings Outlook: Over 79% of S&P 500 companies that reported earnings exceeded expectations, with Q4 earnings growth projected at 8.4%, marking the tenth consecutive quarter of year-over-year growth, indicating sustained corporate profitability that could further drive stock market gains.
- Economic Data Focus: The market is closely watching upcoming employment and inflation data, with January nonfarm payrolls expected to rise by 69,000 and the unemployment rate to remain at 4.4%, as these figures will influence investor expectations regarding future monetary policy, potentially leading to market volatility.
See More
Robinhood Set to Announce Q4 Earnings with Strategic Updates
- Earnings Expectations: Robinhood is expected to report Q4 EPS of $0.68, reflecting a 32.7% year-over-year decline, while revenue is projected to rise 32.7% to $1.34 billion, indicating potential for revenue growth despite profitability challenges.
- Strategic Vision: CEO Vladimir Tenev outlined a long-term goal during the Q3 earnings call, aiming for half of the company's revenue to come from outside the U.S. within the next decade, signaling Robinhood's active pursuit of international expansion to enhance its market position.
- Analyst Ratings: While Wall Street analysts remain bullish on HOOD with a Buy rating, Seeking Alpha analysts express caution with a Hold rating, reflecting a divergence in market sentiment regarding the company's future performance.
- Cost and Growth: CFO Jason Warnick indicated that adjusted operating expenses plus stock-based compensation are expected to reach $2.28 billion in 2025, emphasizing that investments in growth areas like Prediction Markets and Robinhood Ventures will impact future financial performance.
See More
US Stocks Dip Slightly as Tech Shares Retreat
- Tech Stock Retreat: Technology stocks are broadly down today, contributing to a 0.03% decline in the S&P 500, a 0.34% drop in the Dow Jones, and a 0.17% decrease in the Nasdaq 100, reflecting a cautious investor sentiment following last Friday's sharp gains.
- Bond Yield Pressure: Rising US bond yields, with the 10-year T-note yield up 2 basis points to 4.22%, are exacerbated by Chinese regulators instructing banks to reduce their US debt holdings, reviving concerns over the haven status of US assets and potentially impacting investor confidence.
- Earnings Season Insights: More than half of S&P 500 companies have reported earnings, with 79% exceeding expectations, and Q4 earnings growth is projected at 8.4%, marking the tenth consecutive quarter of year-over-year growth, indicating resilience in corporate earnings and potential market support.
- Economic Data Focus: The market is set to focus on upcoming economic data, including a projected 0.8% increase in the employment cost index on Tuesday and a 2.5% year-over-year rise in the consumer price index on Friday, which will provide guidance on future economic trends.
See More
Robinhood's Q4 Earnings Preview Highlights Strong Growth Potential
- Strong Earnings Expectations: Analysts forecast Robinhood's Q4 2025 earnings per share at $0.63, reflecting a 16% increase from the previous year, indicating ongoing improvements in profitability that may attract more investor interest.
- Significant Revenue Growth: The company is expected to report quarterly revenue of $1.33 billion, a 31.7% increase from last year's $1.01 billion and a 4.7% rise from Q3, showcasing its competitive position and business expansion capabilities.
- Market Sentiment Shift: Short interest in Robinhood shares has decreased from 36.51 million to 33.86 million, representing only 4.45% of the company's float, suggesting a reduction in bearish sentiment that could support the stock price.
- Cryptocurrency Revenue Contribution: Notably, 36% of Robinhood's transaction-based revenue in Q3 came from cryptocurrencies, a figure that has steadily increased over recent quarters, highlighting the company's adaptability in emerging markets and future growth potential.
See More
Robinhood Earnings Preview: Potential for Recovery Amidst Stock Decline
- Stock Price Decline: Robinhood's shares have fallen 22% since the beginning of the year, facing significant pressure despite strong growth in recent quarters, likely linked to the drop in Bitcoin prices, as its cryptocurrency trading revenue surged by 300% last year.
- Valuation Normalization: Currently trading at a price-to-earnings ratio of around 37, Robinhood's valuation is more reasonable compared to its historical average of 70, which may attract investors given its rapid growth.
- Growing User Base: With a young and expanding user base, Robinhood continues to present a solid long-term investment opportunity despite short-term challenges, supported by ongoing user growth and market potential.
- Optimistic Earnings Outlook: The upcoming quarterly earnings report is expected to be strong, and if results exceed expectations, it could quickly reverse the stock's fortunes, making the current price drop a potentially good buying opportunity.
See More
Robinhood's Rating Upgraded to Outperform Ahead of Earnings
- Earnings Outlook: Robinhood is set to report its Q4 2025 earnings on February 10, with analyst Steven Chubak upgrading the firm's rating from 'Peerperform' to 'Outperform', indicating confidence in the company's future performance.
- Earnings Beat: In Q3 2025, Robinhood reported adjusted EPS of $0.61, surpassing the $0.53 consensus, while revenue reached $1.274 billion, exceeding forecasts of $1.21 billion, demonstrating strong profitability in a competitive market.
- Market Potential Analysis: Chubak's price target of $125 implies over 40% upside from the current stock price of $87.84, reflecting optimism regarding Robinhood's growth in prediction markets and improved retail engagement.
- Crypto Trading Challenges: Although a decline in crypto trading volume is expected to pose headwinds for Q4 2025 earnings, Chubak believes that positive surprises from prediction markets will enhance retail engagement in stocks and options trading.
See More
US Stocks Rebound as Tech Shares Recover
- Market Recovery: The S&P 500 Index rose by 0.46%, the Dow Jones Industrial Average increased by 0.09%, and the Nasdaq 100 climbed by 0.61%, indicating a rebound in the market driven by recovering tech and chipmaker stocks, reflecting investor confidence in economic growth.
- Mining Stocks Surge: Gold prices increased by over 1% and silver prices jumped more than 6%, boosting mining stocks with Coeur Mining up over 6% and Freeport McMoRan up more than 5%, suggesting rising investor demand for precious metals amid inflation concerns.
- Positive Earnings Outlook: Over 79% of S&P 500 companies that reported earnings exceeded expectations, with Q4 earnings growth projected at 8.4%, marking the tenth consecutive quarter of year-over-year growth, indicating sustained corporate profitability that could further drive stock market gains.
- Economic Data Focus: The market is closely watching upcoming employment and inflation data, with January nonfarm payrolls expected to rise by 69,000 and the unemployment rate to remain at 4.4%, as these figures will influence investor expectations regarding future monetary policy, potentially leading to market volatility.
See More
Robinhood Set to Announce Q4 Earnings with Strategic Updates
- Earnings Expectations: Robinhood is expected to report Q4 EPS of $0.68, reflecting a 32.7% year-over-year decline, while revenue is projected to rise 32.7% to $1.34 billion, indicating potential for revenue growth despite profitability challenges.
- Strategic Vision: CEO Vladimir Tenev outlined a long-term goal during the Q3 earnings call, aiming for half of the company's revenue to come from outside the U.S. within the next decade, signaling Robinhood's active pursuit of international expansion to enhance its market position.
- Analyst Ratings: While Wall Street analysts remain bullish on HOOD with a Buy rating, Seeking Alpha analysts express caution with a Hold rating, reflecting a divergence in market sentiment regarding the company's future performance.
- Cost and Growth: CFO Jason Warnick indicated that adjusted operating expenses plus stock-based compensation are expected to reach $2.28 billion in 2025, emphasizing that investments in growth areas like Prediction Markets and Robinhood Ventures will impact future financial performance.
See More
US Stocks Dip Slightly as Tech Shares Retreat
- Tech Stock Retreat: Technology stocks are broadly down today, contributing to a 0.03% decline in the S&P 500, a 0.34% drop in the Dow Jones, and a 0.17% decrease in the Nasdaq 100, reflecting a cautious investor sentiment following last Friday's sharp gains.
- Bond Yield Pressure: Rising US bond yields, with the 10-year T-note yield up 2 basis points to 4.22%, are exacerbated by Chinese regulators instructing banks to reduce their US debt holdings, reviving concerns over the haven status of US assets and potentially impacting investor confidence.
- Earnings Season Insights: More than half of S&P 500 companies have reported earnings, with 79% exceeding expectations, and Q4 earnings growth is projected at 8.4%, marking the tenth consecutive quarter of year-over-year growth, indicating resilience in corporate earnings and potential market support.
- Economic Data Focus: The market is set to focus on upcoming economic data, including a projected 0.8% increase in the employment cost index on Tuesday and a 2.5% year-over-year rise in the consumer price index on Friday, which will provide guidance on future economic trends.
See More
