Why Robinhood (HOOD) Shares Are Trading Lower Today

What Happened?

Shares of financial services company Robinhood (NASDAQ:HOOD) fell 5% in the afternoon session after a key inflation report came in hotter than expected, renewing concerns about the path of future interest rate cuts. 

The Producer Price Index (PPI), which measures wholesale inflation, rose 0.5% in January, significantly higher than the 0.3% anticipated by economists. Even more concerning was the core PPI, which excludes volatile food and energy prices, as it jumped 0.8%, more than double the 0.3% forecast. This surprisingly strong inflation data suggests that the Federal Reserve may need to maintain its restrictive monetary policy for longer than investors had hoped. The prospect of delayed interest rate cuts tends to weigh on growth-oriented sectors like technology, as higher rates can reduce the future value of their earnings, leading to a broad-based sell-off in the sector.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Robinhood? Access our full analysis report here, it’s free.

What Is The Market Telling Us

Robinhood’s shares are extremely volatile and have had 56 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 2 days ago when the stock gained 5.9% on the news that a rally in Bitcoin renewed expectations for increased trading activity on its platform. 

The stock moved higher after Bitcoin climbed roughly 5% to trade above $68,000. For Robinhood, a significant move in Bitcoin's price was seen as a marketing opportunity that the company did not have to fund. Crypto trading remained one of the platform's most effective ways to attract new and returning users. This activity often led to more trading not just in Bitcoin, but also in other tokens, options, and high-beta stocks. The positive sentiment was not limited to Robinhood, as other cryptocurrency-related stocks also experienced broad gains.

Robinhood is down 34.2% since the beginning of the year, and at $75.85 per share, it is trading 50.2% below its 52-week high of $152.46 from October 2025. Investors who bought $1,000 worth of Robinhood’s shares at the IPO in July 2021 would now be looking at an investment worth $2,178.

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