Fintech Stocks Robinhood and Coinbase Struggle Amid Crypto Downturn

Robinhood Markets (NASDAQ: HOOD) and Coinbase Global (NASDAQ: COIN) are two of the most well-known new-age fintech stocks. While big banks have dominated the financial landscape for centuries, these companies operate digitally and have attracted younger investors.

The fintech industry is growing at a rate of 15.3% compound annual growth rate (CAGR), according to Mordor Intelligence. However, companies like Robinhood and Coinbase have been sluggish due to the prolonged crypto correction. Bitcoin has dropped by more than 30% year to date, a similar performance to both fintech stocks.

Coinbase is diversifying into prediction markets, which already have an annualized revenue run rate above $100 million. However, Robinhood has been in this space longer and has more revenue streams to compensate for the slowdown in cryptocurrencies.