Robinhood’s Crypto Revenue Plunge Sparks Stock Selloff Despite Analyst Optimism
Robinhood Markets Inc. shares tumbled 17% over two sessions after reporting mixed fourth-quarter results. While earnings surpassed estimates at $0.66 per share, revenue fell short at $1.28 billion against $1.35 billion expectations. The crypto segment's 38% revenue decline to $221 million proved particularly damaging, reflecting broader market lethargy.
Fourteen of sixteen analysts maintain Strong Buy ratings despite the selloff, with price targets suggesting 40-90% upside potential. Prediction markets emerged as a bright spot, with January contract volumes hitting a record $3.5 billion. The platform's crypto exposure—representing 17% of total revenue—remains a double-edged sword as digital asset volatility persists.