Robinhood stock plunges 14% in worst week since August as crypto surge fades
The post Robinhood stock plunges 14% in worst week since August as crypto surge fades appeared on BitcoinEthereumNews.com.
Shares of financial services company Robinhood fell 14% in their worst week since August as investors withdrew from the surge that followed President Trump’s election. The stock is nearing a 14% weekly decline after dropping as much as 17%. On February 12, the trading platform reported exceptional fourth-quarter earnings, with revenue more than doubling. This contributed to a remarkable 162% surge in its stock price from November 5, following Trump’s election, through the end of last week. However, Citigroup Inc. and Wolfe Research LLC analysts noted that much of the company’s earnings growth potential was already reflected in the stock’s valuation. As a result, Wolfe’s Steven Chubak downgraded the stock from a buy rating to a hold-equivalent. “We had recommended to our clients that they take some chips off the table at a $60 to $70 share price,” Chubak said. The downgrade is a wake-up call to investors to be “more forensic” over the company’s potential. Crypto-fuelled growth after Trump’s elections spurred Robinhood stock Robinhood experienced serious growth, more than 700% in crypto revenue during the fourth quarter. During the same period, Bitcoin traded above $100,000 as people speculated that Trump would support digital assets. In an email, Mizuho analyst Dan Dolev explained that the pullback stemmed from concerns that the “animal spirits” driving the company’s strong fourth-quarter performance may not persist. However, he remains optimistic about the stock, citing ongoing tailwinds from digital assets and a growing user base on the trading platform. Dolev isn’t the only one with a bullish outlook. Nearly three-quarters of analysts tracked by Bloomberg rate the stock as a buy, with an average 12-month price target of $70.76—slightly above its 2021 record high. Still, Chubak cautioned that a rebound is not assured, pointing to industry data that indicates a decline in crypto activity so…
Filed under: News - @ February 21, 2025 11:18 pm