Robinhood Posts Record Earnings but Stock Falls Amid Market Concerns
Robinhood (HOOD) reported record revenue of $1.31 billion and adjusted earnings per share of $0.62, both exceeding expectations. Despite the strong financial performance, HOOD stock closed at $89.84 on July 29, down 3.15%, continuing a broader decline that has seen shares fall about 14% in five days and nearly 20% year-to-date. The drop was attributed to concerns over the sustainability of earnings due to one-time gains and shifts within revenue streams—particularly from crypto trading, which saw a 38% annual decline. Prediction markets now outperform equities and crypto for the first time at $156 million in revenue. Analysts remain cautiously optimistic with buy ratings from Barclays and Truist but have not prevented ongoing selling pressure. Options traders are hedging against further downside, as reflected by a put-call ratio favoring puts. Institutional money flow is improving slightly despite continued net selling, suggesting the pace of decline may be slowing.
Tickers: $HOOD
Topics: HOOD stock price drop market reaction revenue growth Robinhood