Robinhood Stumbles on Crypto Woes. Should Investors Buy the Stock on the Dip?

Core Viewpoint - Robinhood Markets has experienced a significant decline in share price, losing over a third of its value in 2026 due to Q4 revenue falling short of expectations [1] Financial Performance - Q4 revenue increased by 27% to $1.28 billion, but was below the $1.35 billion analyst estimate [2] - Transaction revenue rose by 15% to $776 million, with options revenue soaring 41% to $314 million and equity revenue climbing 54% to $94 million [3] - Cryptocurrency revenue fell sharply by 38% to $221 million, while net interest revenue jumped 39% to $411 million [3] - Total platform assets surged 68% to $324 billion [3] Growth Prospects - The company aims for at least 20% net deposit growth in 2026 and targets $1 trillion in assets in the coming years [4] - Robinhood has launched a banking product with over $400 million in assets and 25,000 funded customers, offering 3.5% interest on deposits [5] - The predictions market is also a focus, with volumes doubling in Q4, reaching a $300 million annual run rate [6] Investment Consideration - Despite challenges in cryptocurrency revenue, the stock is considered attractively valued with a forward P/E ratio of about 29 times based on 2026 estimates, suggesting a potential buying opportunity [8][9]