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Robinhood stock sinks 10% to 7-month low as crypto correction deepens

Crypto Briefing
Robinhood shares dropped over 10% to a seven-month low due to a cryptocurrency selloff and seasonal revenue slowdown.

Summary

Robinhood shares plummeted more than 10% on Monday, reaching their lowest point since June 2025, driven by a broader cryptocurrency selloff and a typical seasonal slowdown in revenue. The stock's sensitivity stems from its integrated digital asset services; in 2025, crypto transaction revenue grew 200% quarterly, becoming nearly 40% of total transaction revenue. Analysts at Piper Sandler noted short-term headwinds, including declining crypto volumes and the end of the NFL season, which impacted its popular sports prediction markets. While Robinhood is shifting focus to NBA and MLB contracts, analysts caution about valuation resets when seasonal boosts fade. The company is scheduled to report Q4 2025 earnings on February 10, with expectations showing revenue growth but a decline in earnings per share due to rising operating costs.

(Source:Crypto Briefing)