Robinhood’s Mixed Q4 Results Spark Analyst Adjustments Amid Crypto Market Volatility

Robinhood Markets Inc. reported fourth-quarter revenue of $1.28 billion, falling short of the $1.35 billion analyst consensus, while surpassing earnings expectations with 66 cents per share versus the projected 63 cents. The stock tumbled 9% in early Wednesday trading, compounding a 24% year-to-date decline through Tuesday.

Net new assets (NNAs) emerged as a key concern, though Barclays analyst Benjamin noted improving trends in February. "February looks off to a stronger start, particularly with NNAs," he observed, while acknowledging ambiguous trading volume commentary. The analyst suggested the worst may be behind the trading platform.

Goldman Sachs maintained its buy rating despite reducing Robinhood's 12-month price target from $152 to $130, still implying 52% upside potential. Analyst James trimmed forward earnings estimates while adjusting the target P/E multiple from 54x to 45.5x to reflect broader market de-ratings. Deutsche Bank similarly lowered its target to $130 from $155, characterizing results as "mixed" after Robinhood's adjusted earnings of 57 cents missed both the 63-cent consensus and the bank's 61-cent estimate.