HOOD Stock: Is this the End of Robinhood’s Year-long Surge?

Robinhood Markets [HOOD], founded in 2013 by Vladimir Tenev and Baiju Bhatt, is a US-based fintech and brokerage firm that helped redefine retail investing with its commission-free trading model. The firm launched its mobile app in 2015, quickly gaining traction among younger and first-time investors. It expanded into cryptocurrency trading in 2018 and introduced Robinhood Gold, a subscription service offering research, margin access and enhanced tools.

Robinhood went public in 2021 via a $2.1bn IPO, cementing its position as a key player in modern retail finance. Since then, the company has broadened its offering to include retirement accounts, cash-management products and an international expansion into Europe with support for trading tokenized stocks and ETFs.

In recent days the Sheriff of Nottingham has caught up with the HOOD share price. Although it is still up 187.98% year-to-date, it looks like it might be trending downwards from the highs touched in October and early November.

Part of this is a consequence of the firm’s recent earnings. Another part is connected to a broader crypto selloff, alongside mounting fears about an artificial intelligence (AI) bubble.

Let’s unpack exactly what’s happening 

HOOD Slumps as Investors Grow Tech-Phobic

Robinhood shares sank sharply in late November as the momentum behind the bitcoin and AI trades that had been propping up its growth evaporated. The stock fell 12.4% over the week of November 17, including a 10.1% drop on Thursday, before edging up 1% on Friday. November alone has wiped out 27% of its market value, or $35.4bn.

The slump underscores how dependent the Menlo Park-based fintech remains on retail appetite for high-risk trades. Crypto and AI names drove a rebound in revenue and engagement earlier this year, but the recent selloff in both segments has laid bare the platform’s vulnerability to sharp shifts in market sentiment.

Unpropitiously, regulatory filings also show cofounder Bhatt sold 418,338 shares worth $48.7m last week. This was only a sliver of his total stake, but it added extra noise to what had already been a volatile month for HOOD stock. 

Earnings Beat Can’t Stop Selloff

And the month started so well. On November 5, Robinhood reported Q3 earnings that beat expectations and demonstrated a strong trajectory.

Transaction-based revenue soared as engagement accelerated across crypto, options and equities. Total net revenue doubled year-over-year to $1.27bn, with transaction revenue up 129% to $730m — led by crypto ($268m, up 300%), options ($304m, up 50%) and equities ($86m, up 132%).

Strong operational leverage lifted net income to $556m from $150m. Customer growth remained robust, with rising Gold membership adoption supporting recurring revenue. 

“Our team’s relentless product velocity drove record business results in Q3 and we’re not slowing down — Prediction Markets are growing rapidly, Robinhood Banking is starting to roll out, and Robinhood Ventures is coming,” said Chairman and CEO Tenev. Jason Warnick, CFO, added that two new business lines — Prediction Markets and Bitstamp — are generating approximately $100m in annualized revenues.

Nonetheless, the stock slipped post-earnings, likely reflecting investor caution with regard to HOOD stock’s valuation. Having risen 267% by the earnings release, it was already one of 2025’s top performers: time, some might say, for a healthy correction. 

Retail Details: HOOD vs FUTU vs SOFI

Of course, quarterly earnings don’t tell the whole story. In order to get a broader sense of HOOD stock’s longer-term prospects, it might be helpful to compare it to two other, not dissimilar firms.

Futu Holdings [FUTU] is a fintech firm operating a digital brokerage and wealth-management platform. Based in Hong Kong, Futu serves retail investors in China, the US and other markets through its Futubull and Moomoo platforms. Its offering includes equities, ETFs options, margin trading and asset management services. Founded in 2012 by former Tencent staff, Futu has scaled rapidly by targeting tech-savvy, growth-oriented traders with a sleek user interface and strong international footprint.

SoFi Technologies [SoFi], meanwhile, is a US-based fintech platform offering a broad suite of financial services, including brokerage, lending, banking and cryptocurrency trading. Founded in 2011, the company has expanded from student loan refinancing into wealth management and digital banking, likewise targeting younger, tech-savvy investors. Its SoFi Invest platform provides commission-free stock and ETF trading, fractional shares and crypto services. SoFi went public via a SPAC merger in 2021 and has pursued rapid user growth, strategic partnerships and product diversification, positioning itself as an integrated financial ecosystem for retail customers.

Source: Yahoo Finance

From an investor’s standpoint, Robinhood, SoFi and Futu offer distinct exposures to the retail investing wave. Robinhood leans on high-risk trading behavior — crypto, options and meme stocks — to drive engagement and transaction volume. SoFi, by contrast, offers a more diversified fintech model with banking, lending, broker services and recurring revenue through its Grow and Invest platforms. Futu, meanwhile, is a technology-driven brokerage with a strong presence in Asia, giving investors international exposure and scale in rapidly growing Chinese markets.

Looking forward, the retail fintech and digital brokerage market continues to expand rapidly, driven by the increasing adoption of mobile trading, fractional shares crypto access, and low-cost investing solutions. Globally, younger, tech-savvy investors are reshaping trading habits, favoring platforms that combine convenience, low fees and integrated financial services. Regulatory support in key markets, alongside growing interest in alternative assets and AI-driven investment tools, is likely to sustain long-term growth.

Robinhood is well-positioned to capitalize on this trend through its large, engaged user base and focus on high-risk, high-frequency trading segments such as crypto and options. SoFi can leverage its diversified financial ecosystem, cross-selling banking, lending and wealth products to deepen engagement and recurring revenue. Futu, with its technology-driven platform and exposure to Asian markets, benefits from international expansion and a growing base of retail investors seeking access to US and global equities. Together, these firms illustrate varied paths to capturing the expanding retail investing opportunity. 

HOOD Stock: The Investment Case

The Bull Case for Robinhood

Robinhood stands out as a leading US retail brokerage with a large, engaged user base and strong exposure to high-frequency, high-risk trading in crypto, options and growth stocks. Its platform benefits from strong operational leverage and accelerating revenue from transaction-based and subscription services, while customer engagement remains high. Expansion into banking and recurring revenue streams could further stabilize cash flow. With retail investing penetration still growing and fintech adoption increasing, Robinhood is well-positioned to capture long-term market share, particularly if volatility returns to markets that drive transaction volume.

The Bear Case for Robinhood

HOOD stock remains highly sensitive to market sentiment, with revenue closely tied to volatile crypto and speculative stock activity. Its profitability depends on maintaining high transaction volumes, while rising regulatory scrutiny and competition from larger, diversified brokerages pose risks. The stock trades at elevated multiples, reflecting growth expectations that may be difficult to meet in low-volatility or bear markets. Any slowdown in retail trading activity or user engagement could sharply compress earnings, and investor sentiment could further pressure the stock even if operational performance remains stable.

Conclusion

Robinhood offers high upside if retail trading rebounds and adoption of its subscription services grows. After a year of eye-popping growth, a correction was probably in order. Investors will be watching to see if the current selloff continues into 2026, and if the dip turns into a ditch.