Robinhood Stock Extends Slide: What's Driving The Sell-Off?

Robinhood Markets Inc (NASDAQ:HOOD) is trading lower Thursday morning, extending Wednesday’s losses after the online brokerage posted mixed fourth-quarter results Tuesday. The company beat profit expectations, but fell short on revenue, prompting investors to reassess the company’s growth.

Here’s what investors need to know.

• Robinhood Markets stock is under selling pressure. What’s pulling HOOD shares down?

Robinhood Shares Trade Lower After Earnings

Robinhood reported fourth-quarter revenue of $1.28 billion, below Wall Street's $1.34 billion consensus, while earnings of 66 cents per share topped estimates of 62 cents per share. Transaction-based revenue climbed 15% year over year to $776 million, driven by strong gains in options and equities trading, though cryptocurrency revenue dropped 38% to $221 million. Net interest income rose 39% to $411 million as higher rates and larger balances continued to boost results.

Prediction Markets Shine, Crypto Lags

Analysts highlighted Robinhood's fast-growing prediction markets as a key bright spot that could help offset weakness in crypto trading. January prediction-market activity hit an all-time high of roughly 3.5 billion contracts, and Wall Street expects upcoming events such as March Madness, the FIFA World Cup and the 2026 elections to support further volume gains.

Cantor Fitzgerald's Ramsey El-Assal kept an Overweight rating, pointing to product levers like prediction markets, tokenization and international expansion, while Needham's John Todaro maintained a Buy but cut his price target on concerns around softer crypto, options and equity activity.

Stock Under Pressure But Longer-Term Story Intact

Despite near-term volatility, Robinhood's platform assets jumped 68% year over year to $324 billion, and paying Robinhood Gold subscribers rose 58% to 4.2 million, underscoring continued customer growth even as the stock trades well below recent highs.

Robinhood Stock Faces Technical Pressure

The decline in Robinhood’s stock comes amid a generally positive market backdrop, suggesting company-specific concerns may be at play. Investors are likely reacting to the stock’s technical indicators and overall market sentiment. The stock is currently trading 34.20% higher over the past 12 months, indicating a strong longer-term trend despite today’s downturn.

However, it remains 22.9% below its 20-day simple moving average (SMA) and 38.8% below its 100-day SMA, highlighting a struggle to regain upward momentum. The RSI is at 30.45, which is considered neutral territory, while the MACD is below its signal line, indicating bearish pressure on the stock.

The combination of neutral RSI and bearish MACD suggests mixed momentum, reflecting uncertainty among traders.

• Key Resistance: $78.00
• Key Support: $72.00

Robinhood’s Business Model

Robinhood Markets is creating a modern financial services platform. It designs its own products and services and delivers them through a single, app-based cloud platform supported by proprietary technology.

Its vertically integrated platform has enabled the introduction of new products and services such as cryptocurrency trading, dividend reinvestment, fraud detection, derivatives, fractional shares and recurring investments.

Buy Consensus Despite Lowered Price Targets

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $142.00. Recent analyst moves include:

• Truist Securities: Buy (Lowers Target to $120.00) (Feb. 12)
• Goldman Sachs: Buy (Lowers Target to $130.00) (Feb. 11)
• Piper Sandler: Overweight (Lowers Target to $135.00) (Feb. 11)

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for Robinhood Markets, highlighting its strengths and weaknesses compared to the broader market:

• Value Rank: 19.35 — The stock is trading at a steep premium relative to peers.
• Growth Rank: 90.71 — Indicates strong growth potential compared to the market.
• Momentum Rank: 44.93 — Suggests the stock is underperforming the broader market.

The Verdict: Robinhood Markets’ Benzinga Edge signal reveals a mixed performance outlook. While the strong Growth Rank indicates potential, the low Value Rank suggests that the stock may be overpriced relative to its peers.

HOOD Shares Fall Thursday

HOOD Price Action: Robinhood Markets shares were down 8.20% at $71.51 at the time of publication on Thursday, according to Benzinga Pro data.

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