Robinhood Markets, Inc. began the 2026 trading year on a downward trajectory, extending losses from the final session of 2025. The stock closed that last trading day with a decline of just over 2%, settling at $113.10. This pullback is attributed to revised forecasts from two prominent financial research firms, Barclays and Needham, both of which have lowered their revenue expectations for the brokerage’s fourth quarter.
Operational Metrics Trigger Caution
The analysts’ revised stance is rooted in the platform’s operational data for November 2025, which revealed a notable slowdown in key business areas. Equity trading volume plummeted 37% month-over-month to $201.5 billion. The crucial cryptocurrency segment also saw a contraction, with volume receding 12% to $28.6 billion.
Compounding these figures, Robinhood reported a net loss of approximately 130,000 funded accounts, bringing its total user base to 26.9 million. This decline directly pressures transaction-based revenues, a core component of the company’s overall income.
In its assessment, Barclays pointed to “mixed trading trends,” explicitly highlighting weakness in the crypto business. Needham similarly walked back its earlier projection. Both institutions now await the official Q4 2025 results to determine whether the November softness was merely a seasonal anomaly or indicative of a broader trend.
Should investors sell immediately? Or is it worth buying Robinhood?
Technical Picture Shows Strain
From a technical perspective, the equity is trading well below its 52-week high of $131.88, reached in October. The Relative Strength Index (RSI) currently registers at 76, a level typically signaling an overbought condition. The share price is now testing a key support zone between $112 and $113. A sustained break below this level could invite further selling pressure.
The significant rally of over 194% throughout 2025 has likely prompted a wave of profit-taking among investors. The market appears to be in a holding pattern, awaiting clearer signals from the upcoming financial report.
Long-Term Strategy: New Ventures in Focus
Looking beyond immediate challenges, Robinhood is banking on expansion into new business verticals such as prediction markets—platforms for wagering on real-world events. However, this space is growing increasingly competitive, with rivals like DraftKings also making moves. Whether this nascent segment can offset potential weakness in core transaction revenues remains an open question.
The forthcoming fourth-quarter earnings release will be pivotal in clarifying if the November slowdown was a temporary dip or the start of a more structural issue. Until that clarity emerges, share price volatility is likely to persist.
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