Robinhood stock plunges 12% as company's Q4 revenue misses Wall Street estimates

4 days ago 4

Robinhood (HOOD) banal tumbled much than 12% successful aboriginal trading connected Wednesday aft the trading platform's gross came successful beneath expectations the erstwhile day.

Robinhood posted grounds gross of $4.5 cardinal successful 2025, including a grounds $1.28 cardinal successful the 4th quarter. However, its 4th fourth gross came successful little than $1.35 cardinal expected by the Street.

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As of 10:20:02 AM EST. Market Open.

Crypto gross for the 4th fourth came successful astatine $221 million, beneath estimates of $248.2 million. Options gross besides came successful abbreviated of expectations, astatine $314 cardinal versus estimates for $331 million.

"A top-line miss is not adjuvant astatine all," Christian Bolou, an expert astatine Autonomous Research, told Yahoo Finance.

"Net deposit maturation decelerated successful the 4th fourth and looks similar it decelerated successful January," helium added. "The banal absorption mightiness beryllium warranted present fixed precocious expectations and a precise costly stock."

People hold successful enactment for t-shirts astatine a pop-up kiosk for the online brokerage Robinhood on Wall Street aft the institution went nationalist with an IPO earlier successful the time connected July 29, 2021 successful New York City. Robinhood Markets Inc. shares fell astir 5% during its Nasdaq debut. (Photo by Spencer Platt/Getty Images)

Heading successful the print, the banal was down astir 40% from its all-time high.

However, analysts were bullish connected Robinhood, hoping the company's assorted businesses including app offerings and prediction markets would offset a crypto wintertime successful which bitcoin has tumbled much than 45% from its October all-time high.

"It's mode much diversified than successful anterior periods and, conscionable from a concern perspective, amended managed," added Bolou, whose steadfast has a Buy standing connected the banal and a $128 terms target. "All of these things acceptable up the institution precise good for a crypto winter."

The banal has 24 Buy recommendations, 4 Holds, and 1 Sell.

Ines Ferre is simply a elder concern newsman for Yahoo Finance. Follow her connected X astatine @ines_ferre.

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