Revenue Misses Expectations, Robinhood Drops 7% Pre-Market
Special Topic: Focus on Q4 2025 US Stock Earnings Reports
Trading platform Robinhood (HOOD) reported revenue below expectations, with its stock price plummeting 7% in pre-market trading on Wednesday.
Robinhood announced a record-high revenue of $4.5 billion for 2025, with Q4 revenue also hitting a quarterly record at $1.28 billion, but still falling short of the market expectation of $1.35 billion.
Q4 crypto business revenue was $221 million, below the expected $248.2 million; options business revenue was $314 million, also missing the expected $331 million.
Independent research firm analyst Christian Bolu told Yahoo Finance:
"There is no benefit when revenue figures fall short of expectations."
He added: "Net deposit growth slowed in Q4, and January also appears to be slowing. Given the high market expectations and the stock’s expensive valuation, the price reaction is reasonable."
However, analysts remain optimistic about Robinhood, hoping the company’s diversified businesses—including app services and prediction markets—can offset the impact of the crypto winter, with bitcoin now down more than 45% from its all-time high in October.
Bolu stated: "The company's business is more diversified than ever, and management is more outstanding from a business perspective. All of this enables the company to handle the crypto winter very well." His firm gives the stock a buy rating with a target price of $128.
Currently, the stock has a total of 24 buy ratings, 4 hold ratings, and 1 sell rating.
Editor: Guo Mingyu
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Jensen Huang steps down, and the "biggest patron" of new AI players is gone too
Anthropic's tens-of-billions IPO investment, Figure AI's additional $1 billion, and Nscale's over $5 billion credit guarantee are all in negotiations but their outcomes remain uncertain. Meanwhile, its $500 billion AI financing platform has stalled, and some clients are considering switching to AMD or Google. Successor Kress has a conservative style and has repeatedly vetoed deals aggressively promoted by Jensen Huang, signaling the possible end of Nvidia's era of bold investments.
Applied Materials (AMAT.US) Q4 Earnings Call: CEO Responds to Capacity Mismatch Concerns, Says No Customer Delayed Delivery; System Capacity Expected to Double by 2028
Applied Materials released its financial results for the fourth quarter of fiscal year 2026 (ending October 25, 2026) after the US stock market closed on November 12.
The End of an Era! Semianalysis: Without Jensen Huang, Nvidia Will Become the Next Apple
Semianalysis believes that Jensen Huang’s departure marks the end of a founder-driven era. Nvidia is highly likely to replicate the "post-Steve Jobs Apple model"—shifting from aggressive bets to stock buybacks—which is not beneficial for either technological advancement or shareholders. A greater concern is that the supply chain advantages, customer trust system, and open-source ecosystem moat personally built by Jensen Huang will be difficult for his successor to replicate. By 2028, over 70% of total production capacity may shift to non-Nvidia players.
Crypto prices
More
