Robinhood (HOOD) Stock Price Risks 40% Crash as Crypto Drag Outweighs Earnings
Despite strong 2025 earnings, Robinhood's stock faces a potential 40% crash due to weak crypto revenue and bearish technical indicators.Summary
Robinhood (HOOD) stock has recently rebounded nearly 23% from its February low, coinciding with the company posting its best financial year ever, with full-year revenue up over 50% and strong growth in options trading and subscriptions.
However, this positive earnings news is being overshadowed by significant risks. Crypto revenue dropped 38% year-over-year, causing Q4 sales to miss analyst estimates, which led to an immediate stock drop post-earnings. Technical indicators suggest the rebound is fragile; the stock broke below a falling channel, and indicators like Chaikin Money Flow (CMF) remain negative, indicating a lack of strong institutional buying support during the rally.
Furthermore, HOOD faces the risk of a "death cross" (50-day EMA dropping below the 200-day EMA), signaling longer-term weakness. The current chart structure is a falling channel, which, if broken to the downside from the current support near $71, could lead to a further decline of over 40%, targeting levels near $55.
(Source：BeInCrypto)