Robinhood’s stock is down mainly because it’s tightly linked to risky trading (especially crypto), and both the market and regulators have turned more cautious in early 2026.

What’s going on now

  • Robinhood shares dropped about 10% on Monday and are at their lowest level since mid‑2025, after several straight down days.
  • The fall comes after a huge run in 2025, when the stock more than doubled, so some of this is classic “give‑back” after a big rally.

Key reasons the stock is down

  1. Crypto slump hitting Robinhood’s business
    • Robinhood makes a lot of money when customers trade volatile assets like bitcoin and other tokens.
 * In recent weeks, major coins have sold off, trading volumes have cooled, and sentiment toward crypto has turned weaker, which hurts Robinhood’s revenue expectations and spooks investors.
  1. Macro and interest‑rate worries
    • High inflation and uncertainty around the Federal Reserve’s rate‑cut path are pressuring growth and fintech stocks generally.
 * When rates stay higher for longer, investors discount future profits more heavily, which weighs on high‑growth names like Robinhood.
  1. Technical and momentum factors
    • The stock recently broke below its 200‑day moving average and then slid for multiple sessions, which many traders view as a bearish technical signal.
 * After a 200%‑plus run in 2025, some holders are taking profits and fast‑money traders are flipping from “buy the dip” to “sell the rip.”
  1. Sensitivity to risk appetite
    • Robinhood’s model depends on retail investors piling into speculative areas like crypto and hot AI or tech names.
 * When markets shift into “risk‑off” mode (like during recession chatter or tariff/geo‑political flare‑ups), Robinhood tends to fall harder than the broader indices.

Recent history that set this up

  • In late 2025, Robinhood posted very strong revenue and profit growth, but investors focused on warnings about higher expenses and leadership changes, which already made the stock feel fragile under the surface.
  • Throughout late 2025 and into 2026, periodic macro scares (tariff headlines, yield spikes, crypto drops) repeatedly knocked the stock down, reinforcing the idea that it’s a high‑beta bet on speculative trading.

How forums and traders are talking about it

“HOOD is basically a levered play on retail degen volume. When bitcoin bleeds and macro looks ugly, it’s gonna get smoked.”

  • On trader forums, common themes include:
    • Complaints that crypto volume is “dead” versus peak meme‑stock days.
    • Arguments that the Q3‑Q4 2025 rally priced in “perfection,” so any hint of slower growth, higher expenses, or macro risk is punished.
    • Bulls claiming this is just a “healthy reset” after a parabolic run, not the end of the story, pointing to solid revenue growth and product expansion.

Quick TL;DR

  • Robinhood stock is down because:
    1. crypto and speculative trading have cooled,
    2. higher‑for‑longer rates and macro scares hurt growth stocks,
    3. technical breakdown after a huge 2025 rally, and
    4. the business is highly exposed to swings in retail risk appetite.

Information gathered from public forums or data available on the internet and portrayed here.