What Happened?
Shares of financial services company Robinhood (NASDAQ:HOOD) jumped 3.9% in the afternoon session after the stock rebounded from losses in the prior trading session that were linked to a decline in Bitcoin prices. The online trading platform had slipped the previous day as Bitcoin experienced a sharp single-day decline. This was notable because options and crypto made up 78% of the transaction-based revenue in Robinhood's latest quarter. Adding to investor optimism, news emerged that Cathie Wood's ARK Invest had purchased more shares during the dip. The recovery also occurred against a backdrop of strong company performance, as Robinhood had recently crushed its third-quarter earnings estimates and reported an 82% jump in average revenue per user.
The shares closed the day at $126.17, up 2.4% from previous close.
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What Is The Market Telling Us
Robinhood’s shares are extremely volatile and have had 62 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock dropped 4.8% on the news that a broad sell-off in the cryptocurrency market, driven by a sharp drop in the price of Bitcoin, weighed on crypto-related stocks. The downturn reflected a wider “risk-off” mood among investors, who moved to shed riskier assets amid macroeconomic uncertainty. Bitcoin, the largest cryptocurrency, fell more than 5%, dropping below $86,000 and triggering liquidations worth hundreds of millions of dollars across the market. Other major digital currencies like Ethereum also experienced significant declines. This negative sentiment was linked to uncertainty over future interest rate decisions by the Federal Reserve.
Robinhood is up 219% since the beginning of the year, but at $125.83 per share, it is still trading 17.5% below its 52-week high of $152.46 from October 2025. Investors who bought $1,000 worth of Robinhood’s shares at the IPO in July 2021 would now be looking at an investment worth $3,614.
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