Robinhood (HOOD) shares are down about 40% from their all-time highs, and a disappointing after-the-bell third-quarter earnings report on Oct. 27 added to the pressure. Crypto revenue fell 55% to $120 million, the fourth straight quarterly decline, while overall transaction revenue rose 19% to $867 million, helped by options and prediction-market event contracts. Adjusted EPS fell 3% to $0.60, though it beat the $0.56 analyst consensus. October deposits topped $13 billion, including $6 billion from the Dell Foundation. The article calls the stock not a bargain at a forward P/E of about 26.5 on 2027 estimates, but says it is nearing the point where investors may start to take interest as crypto becomes less of a drag.
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- Why Is Robinhood Stock Down 40% From Its Record High?
Robinhood (HOOD) hit an all-time high of $152.46 last year but has since fallen about 40% as investors question the sustainability of its growth. Third-quarter revenue rose 12% year over year to $1.4 billion, with options trading revenue up 31% to $399 million while crypto trading revenue fell 55%. The author argues that the high-risk, short-term trading behind options commissions may not last, noting that options revenue fell sharply in 2022 after surging in 2021, and the stock dropped 90%. The stock still trades at a price-to-sales ratio of 16.7, above its 12.3 average since going public in 2021, though rising interest rates could support net interest income. The author says they personally would not buy the stock now, given the risk of further downside relative to its valuation.
- $10,000 Invested in Robinhood at Its IPO Would Be Worth About $27,160 Today
Investing $10,000 in Robinhood stock at its IPO closing price would now be worth roughly $27,160, though the shares opened near $38 and closed the first session at $34.82. The stock hit an all-time high of $152.46 in October 2025 and is now down roughly 38% from that peak as the crypto market pulled back. Robinhood trades at about 37 times this year's expected earnings and 16 times expected sales. In the third quarter, sales rose about 12% year over year to $1.42 billion, but adjusted EPS fell 3% to $0.60 as operating expenses climbed 16%, and the full-year operating expense target was set at $2.675 billion to $2.75 billion, with the top end cut by $25 million. The author says prediction markets and new products are growth drivers, and that stronger sales, earnings, and a crypto valuation rebound could lift the valuation further.
- Is Robinhood Stock a Buy About a Third Below Its Record High?
Robinhood shares trade near $97, about 35% below the all-time high of around $152 reached in late 2025, a bigger decline than Charles Schwab (about 15%) and Interactive Brokers (about 20%). The author argues the stock still looks expensive, with a price-to-earnings ratio of about 42x versus 16x for Schwab and 31x for Interactive Brokers, which makes value investors less likely to be interested. The company went public only in 2021 and has not been tested by a deep, prolonged downturn, while its customers, many new to investing, are using more margin (margin balances up 127% year over year in Q2 2026) and expanding into crypto and prediction markets. The author says the premium over peers could keep most investors on the sidelines until the company and its customers face a test on the scale of the Great Recession or the dot-com bubble.
- Coinbase earnings: Wall Street divided on trading rebound after Robinhood crypto revenue sinks 55%
- Morning Minute: Robinhood Misses, But Crypto Beats and Robinhood Chain Soars
Robinhood posted record revenue of $1.42 billion and EPS of $0.51, both slightly below expectations, while crypto revenue of $120 million beat forecasts, rising 20% from the prior quarter though still 55% below a year earlier. Trading volume reached $50 billion, while event contracts revenue rose to $173 million on a record 16.4 billion contracts traded. Robinhood Chain, launched July 1, generated more 30-day rolling fees than Ethereum or Base by late August, prompting management to say it will ramp up investment, and leading tokens in its ecosystem rose 20-50%. Across the market, major cryptocurrencies gained 2-4% ahead of the FOMC meeting with BTC at $81.3k, while bitcoin ETFs drew $176 million in net inflows.
- Robinhood Misses Q3 Earnings as Crypto Revenue Rises and Prediction Market Bets Grow
Robinhood reported record third-quarter revenue of $1.42 billion, slightly below the roughly $1.43 billion expected, and earnings of $0.51 per share versus $0.55 expected. Event contracts revenue rose to $173 million from $156 million in the prior quarter, while crypto revenue rose to $120 million but fell 55% from a year earlier. Customers traded a record 16.4 billion event contracts, more than seven times a year earlier. Net income was $476 million, down 14% from a year earlier, and the quarter included a $67 million unrealized loss on Robinhood Ventures Fund I. The company narrowed its 2026 adjusted operating expense guidance to $2.675 billion to $2.75 billion, and shares slipped in after-hours trading.
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