Down 33% YTD, Should You Buy the Dip in Robinhood Stock in February 2026?

Core Viewpoint - Robinhood's stock has declined approximately 33% year-to-date following its latest earnings release, which has affected investor confidence and reset expectations despite the company's ongoing product expansion and growth [1][4]. Company Performance - Robinhood Markets, an online brokerage, has an equity value of nearly $77 billion, with its share price at $76.58 as of early February 13, down 33% year-to-date but still up 20% over the past 52 weeks [4]. - The latest earnings report for the fourth quarter of 2025 showed earnings per share of $0.66, surpassing the consensus estimate of $0.63, indicating solid profitability on a GAAP basis [8]. - Quarterly revenue reached approximately $1.28 billion, reflecting a healthy year-over-year growth rate in the mid-20s percentage [8]. Asset Growth - Total platform assets increased by 68% year-over-year to $324 billion, with retirement assets more than doubling to $26.5 billion as customer adoption of long-term investing and tax-advantaged products rises [9]. - The margin book surged 113% year-over-year to a record $16.8 billion, driven by record equities and options volumes [9]. Market Valuation - Robinhood's stock is currently valued at a PEG ratio of 1.34x and a price-to-sales multiple of 16.02x, compared to sector medians of approximately 1.0x for PEG and 2.94x for sales, indicating a significant growth premium assigned by the market despite the recent stock decline [7].