Robinhood Stock Down 8% As Crypto Revenue Plunges 38% - Robinhood Markets (NASDAQ:HOOD)

Core Insights - Robinhood's crypto revenue decreased by 38% to $221 million in Q4, contributing to an 8% drop in premarket trading [1][2] - Total revenue rose 27% to a record $1.28 billion in Q4, but the decline in crypto revenue negatively impacted overall performance [2] - Trading volumes on the Robinhood app fell 52% year-over-year, indicating weaker retail participation [2] Revenue Breakdown - Cryptocurrency transaction revenue fell 38% year-over-year to $221 million, down from $268 million in Q3 [2] - Options revenue increased by 41% to $314 million, while equities trading rose 54% to $94 million [3] - Net interest revenue surged by 39% to $411 million, and Robinhood Gold subscribers grew by 58% to 4.2 million [3] Market Performance - HOOD closed at $85.60 and is trading 8% down in premarket, breaking below all moving averages [4] - Critical support is now at $70-$75, with premarket trading near $78 testing the upper end of this range [4] - The RSI at 34.68 indicates a trend towards oversold conditions, confirming downside momentum [5] Strategic Developments - Robinhood's General Manager noted a shift in customer behavior, with users "buying the dip" and growing portfolios [6] - The company is focusing on passing stablecoin yields to consumers while ensuring they are informed about associated risks [6] - Robinhood announced the launch of Robinhood Chain, an Ethereum Layer-2 for trading tokenized stocks and ETFs, expected to be fully operational by late 2026 [7]