Why Robinhood Stock Got Slammed Today

The broader stock market had a decent trading session on Thursday, but we can't say the same for Robinhood Markets (NASDAQ: HOOD) shares. Investors aggressively traded out of the next-generation brokerage's equity, resulting in a loss of more than 9% in price. This followed a dispiriting operational update from the company.

A November not to remember

Robinhood released its monthly trading metrics for November just after the market close on Wednesday, and many found them discouraging. Its equity trading volumes fell by 37% compared to October, reaching $201.5 billion (this figure, however, was up by the same percentage year-over-year).

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A similar dynamic was apparent in options contracts traded; these totalled over 193 million for a month-over-month decline of 28%, but a year-over-year improvement of 24%.

Arguably more concerning, given how aggressively Robinhood has entered cryptocurrency trading, volumes in that asset class declined in both time periods. The company's crypto trading volume in November totaled $28.6 billion, representing a 12% decrease from the previous month and a 19% decline from November 2024.

Still on the move

Putting those results into context, October was an unusually strong month for Robinhood, making it a challenging act to follow. Meanwhile, the company continues to expand ambitiously, following its announcement earlier this week that it was acquiring a pair of brokerages in the populous Asian nation of Indonesia.

That said, the double-digit declines are notable, and if more follow, it might indicate systemic challenges at the brokerage. If I were a shareholder, I wouldn't necessarily exit Robinhood on its latest news, but those monthly metrics are well worth monitoring closely.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.