Retail traders buy chip dips while Robinhood takes a hit from crypto slump
Robinhood reported third-quarter revenue up 12%, but earnings per share missed estimates and crypto revenue fell 55%, sending its shares lower after hours.
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what happened
Robinhood CFO Shiv Verma told MarketWatch that volatility in semiconductor stocks did not scare away retail investors. According to him, clients on the platform bought shares on the dips during the third quarter, focusing on companies they had researched beforehand. Some individual traders who made large leveraged bets on chips, however, have suffered heavy losses.
Robinhood's revenue rose 12% from a year earlier to $1.42 billion, but earnings of 51 cents per share fell short of the 56 cents FactSet analysts expected. Crypto revenue dropped 55%, while prediction-market revenue jumped more than sixfold to $173 million. After the report, the stock fell 4.7% in after-hours trading and is down 16.4% so far this year.
The company said net deposits in October topped $13 billion, helped by a roughly $6 billion contribution from Michael Dell and Susan Dell to Trump accounts.
why it matters
Weak profit despite fast growth in newer business lines makes Robinhood's shares sensitive to crypto trading activity and retail demand. Bitcoin's price, still well below last summer's highs, remains a key driver of the broker's revenue.
market impact
HOOD: earnings below forecasts and weak crypto revenue pressure the broker's shares
- Robinhood shares (HOOD) pressure down — earnings below forecasts drove the stock lower after hours
tags
instruments
sources
- Retail traders buy the dip on chip stocks - but Robinhood gets burned by the crypto market — Dow Jones Newswires, 27 October 2026 at 21:21 UTC
- Retail traders buy the dip on chip stocks - but Robinhood gets burned by the crypto market — Dow Jones Newswires, 27 October 2026 at 22:51 UTC
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