Robinhood (HOOD) Stock Plummets 14% as Crypto Revenue Crashes 47%
The fundamental issue centered on cryptocurrency performance. Cryptocurrency transaction revenue plummeted 47% compared to the same period last year, pulling total revenue down to $1.07 billion — falling $70 million below Wall Streets $1.14 billion projection. Adjusted earnings per share of $0.38 came in 10% under analyst estimates. Despite achieving 15% year-over-year revenue growth overall, the substantial cryptocurrency revenue contraction dominated investor sentiment. While executives had previously warned about weakening retail crypto activity, the magnitude of the deterioration exceeded market expectations. Broad-Based Weakness Across Crypto Trading Platforms The selling pressure extended well beyond Robinhood. Coinbase (COIN) shares declined approximately 8% to $179, while Webull (BULL) retreated about 8% to $6.77 — even though neither platform released earnings reports Wednesday. Coinbase appears to have suffered spillover effects from Robinhoods cryptocurrency revenue figures. A critical question emerges: is retail cryptocurrency appetite declining universally, or are traders migrating toward Coinbase? Notably, Coinbase delivered record institutional derivatives revenue in its most recent quarter, suggesting pockets of strength remain within the broader ecosystem. Bitcoin mining operations Riot Platforms (RIOT) and MARA (MARA) both retreated 6-7%. Strategy (MSTR), the publicly-traded company with the largest corporate bitcoin holdings, fell approximately 4%. Bitcoin itself traded below $76,000, down roughly 0.5% over the previous