Robinhood Stocks Fell 10%, Impacted by Decline in Crypto Trading

Robinhood's Fourth Quarter Results Failed to Meet Expectations

Robinhood shares fell by 10 percent after the fourth quarter revenue of $1.28 billion failed to exceed estimates. The company’s crypto revenue also dropped by 38 percent year-over-year, falling to $221 million.

This decline negatively impacted trading revenues and also led to adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) and net interest income falling below expectations.

Negative Comments and Target Price Update from Analysts

JPMorgan has lowered its target price on Robinhood from $130 to $113. Analysts pointed to the slowdown in the company's growth as well as more challenging comparisons for 2025.