Robinhood

HOOD

Market cap $71.5B

HOOD's shares are down nearly 30% as crypto trading slumps, but global expansion, new products and buybacks could reshape the stock's risk-reward.

Robinhood stock (HOOD) has encountered a challenging beginning to the year, with shares down roughly 37% year-to-date in 2026. This decline comes after an impressive 2025, when the stock price nearly tripled, but recent progress has faltered due to a revenue miss in Q4 and significant downturns in Bitcoin, which is still down by nearly 50% from 2025 peaks.

Robinhood Markets Inc (NASDAQ: HOOD) shares are trading slightly higher on Tuesday afternoon. The bounce only partially offsets a roughly 4% slide from Monday's session open, as investors reassess risk across financials and high-beta trading platforms.

A month ago, I highlighted the fragility in the financial sector, arguing that the broader market would struggle to make meaningful headway without its participation. Little has changed. On Monday, the group was the worst performer among the 11 major sectors, with the State Street Financial Select Sector SPDR ETF falling 3.4%, its steepest single day decline in nearly 11 months.

Robinhood stock is down 33% year to date and 50% from its October high. The drop is due to its high valuation and revenue miss in Q4.

Each week, Benzinga's Stock Whisper Index uses a combination of proprietary data and pattern recognition to showcase five stocks that are just under the surface and deserve attention.

Robinhood stock has lost half of its value over the past four months. It's highly exposed to cryptocurrency, which has been falling.

The proposed ETFs are all tied to prediction markets related to U.S. elections.

Robinhood's platform assets jump 59% y/y to $324.4B in January 2026, fueling revenue momentum.

The recent pullback has likely become an opportune time to add shares in Shopify. A sell-off in crypto may have made Robinhood Markets stock more attractive.