Robinhood Markets Stock Plummets Amid Revenue Model Concerns

Robinhood Markets (HOOD) has been experiencing a downturn in 2026, with its stock price plummeting by 39% since the start of the year. As of March 15th, the company's shares are trading at around $70.27 per share, which is more than 53% below its 52-week high of $152.46 reached in October 2025.

The recent decline comes after a strong performance in 2025, where Robinhood Markets reported full-year revenue of approximately $4.5 billion and Q4 2025 revenue of $1.28 billion, up about 45% year-over-year. However, the trading numbers for February 2026 told a different story, with equity notional trading volumes falling by 14%, options contracts traded dropping by 10%, and event contracts business seeing a 22% fall in average daily activity.

The company's revenue model is a key concern for analysts, as a large portion of income comes from crypto trading and options, which are highly cyclical segments. The decline in crypto transaction revenue by 38% in Q4 2025 has raised concerns about the sustainability of the revenue base heading into 2026.

Several analysts have cut their price targets for HOOD, with Mizuho reducing its target from $135 to $110 and maintaining an Outperform rating. Bank of America and Goldman Sachs also trimmed their targets, but both firms kept a Buy rating. The average 12-month price target sits near $115-$119, indicating significant upside potential.