Robinhood Misses the Mark: Why This Brutal Drop?
The punishment was immediate for the exchange Robinhood Markets Inc. After the closing bell, the stock plunged, erasing part of the gains accumulated in recent months. The cause? Fourth-quarter revenue that, while up year-over-year, failed to meet Wall Street’s aggressive expectations.
Robinhood announced record revenue of $1.28 billion, but this figure fell short of analysts’ estimates (which targeted around $1.34 billion). The contrast is striking with earnings per share (EPS), which beat consensus at $0.66, proving the company knows how to manage its costs. However, in the stock market, revenue growth remains the lifeline for tech stocks.
The dark spot in the report lies in the crypto segment. Cryptocurrency-related revenue dropped 38% year-over-year, settling at $221 million. This underperformance is explained by market volatility and Bitcoin’s price decline during the period in question, cooling retail traders’ enthusiasm.
Technical Analysis: Can the $79 Support Hold?
From a technical standpoint, HOOD’s configuration is deteriorating in the short term. The stock, which was trading around $85 before the announcement, broke violently to the downside to test the $79 zone in after-hours trading.
This $79 level is not insignificant. It corresponds to an important psychological pivot zone. If sellers maintain pressure and the stock opens and closes below this threshold, the market structure could shift into bearish territory. The stock now sits nearly 50% below its recent all-time high (around $153 reached in 2025), signaling a major medium-term correction.
The momentum indicators in HTF, like the RSI, indicate that the drop could be deeper in the coming months. The break of the major trendline could push HOOD stock price to $35 in the lower order block within 2 weeks.
Key Levels to Watch
- Immediate support: $77 – $79 (Current price zone and psychological threshold).
- Critical support: $69 (3-day order block, last stronghold before a drop to $35).
- Major resistance: $85 – $88 (Bearish gap left by the post-earnings drop).
Scenarios: Technical Bounce or Capitulation?
The market’s reaction in the coming days will be decisive for the 2026 trend. Two scenarios are emerging for HOOD stock:
- Bullish Scenario: Investors digest the news and focus on record profitability (EPS of $0.66). The market considers the crypto revenue decline as cyclical and temporary. In this case, HOOD could defend the $79 level and attempt to fill the gap to retest $85 in the short term.
- Bearish Scenario: Disappointment over growth prevails. The break below $79 is confirmed by massive volume at the open. The stock could then slide below $70 – $75, seeking more solid support in the HTF order block around $40.
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