The Crypto Selloff Is Weighing Down Robinhood Stock, but Bridgewater Is Betting Big

Core Insights - Robinhood Markets (HOOD) shares experienced a decline due to a selloff in cryptocurrencies, with Bitcoin briefly reaching $98.4K on November 13, leading to a 10% drop in HOOD stock on the same day [1] - Hedge fund Bridgewater Associates opened a new position in Robinhood worth $115.6 million in Q3, indicating that institutional investors see potential value despite recent volatility [1] - Robinhood has a significant branded user base and is expanding its non-crypto revenue streams, which could support its recovery [1][2] Company Overview - Founded in 2013, Robinhood Markets is a fintech brokerage offering commission-free trading of stocks, ETFs, options, and cryptocurrencies through a mobile app, and has expanded into prediction markets, digital banking, and a crypto exchange [3] - The company is currently valued at $110 billion, with shares soaring approximately 215% year-to-date in 2025 due to increased trading activity in crypto and equities [4] Financial Performance - Despite strong Q3 results and increased trading activity, Robinhood's stock faced a pullback in November due to profit-taking [4] - The price-to-book (P/B) ratio for Robinhood is 13.67, significantly higher than the sector average of 1.21, suggesting that the stock may be overvalued [5] Market Conditions - A downturn in the crypto market in late Q3 and early Q4 negatively impacted Robinhood, with traders reducing activity as Bitcoin and Ethereum prices fell [6] - Although Robinhood's crypto revenue tripled year-over-year, it fell short of high expectations, affecting market sentiment [6]