Robinhood Stock Sinks After-Hours: 3 Reasons Why Analysts, Retail Traders Are Shrugging Off The Dip

• Robinhood’s options revenue grew 41% year-over-year, and event contracts exceeded 12 billion in 2025.
• On Tuesday, Robinhood said that in the fourth quarter, prediction market volumes more than doubled.
• Robinhood Gold grew 58% to a record 4.2 million subscribers.

Shares of Robinhood Markets, Inc. are on track for a second straight day of losses, if weakness carries into Wednesday’s session, after the company’s latest results failed to ease concerns about slowing growth in key metrics. Still, retail traders and Wall Street analysts remain optimistic about a rebound driven by the company’s expanding revenue streams.

The stock fell nearly 8% in after-hours trading and is down more than 24% so far this year, reversing momentum from last year, when shares more than tripled. 

“The post-earnings stock selloff reflects near-term crypto sensitivity and sentiment rather than deterioration in the underlying business, which continues to improve in mix, scalability, and long-term earnings durability,” said Scott Acheychek, COO of REX Financial, REX Shares’ parent company.

REX offers the T-REX 2X Long HOOD Daily Target ETF (ROBN) as well as the REX Hood Growth & Income ETF (HOII).

Here are three reasons why retail traders and Wall Street are still optimistic about the fintech play:

Robinhood Options Revenue

Robinhood continues to drive growth through options, primarily through payment for order flow (PFOF), a pennies-per-trade model that pays brokerage firms to route retail buy and sell orders to a specific market maker. Options revenue grew 41% year-over-year, and event contracts exceeded 12 billion in 2025.

“Robinhood’s quarter was weighed down by a sharp decline in crypto trading revenue, which drove the headline revenue miss, but crypto is increasingly less central to the company’s earnings power,” Acheychek said.

“Crypto was the drag but not the story,” he said, adding that the more important story is the continued strength and durability of non-crypto businesses, led by options trading, prediction markets, net interest income, and subscriptions.

“Trading volumes grew to new highs across equities, options, futures, and event contracts as we continued to win market share and saw record net buying from our customers,” CFO Shiv Verma said.

Robinhood Prediction Markets

On Tuesday, Robinhood said that in the fourth quarter, prediction market volumes more than doubled, with over $12 billion in contracts traded in 2025, the first full year of prediction markets. “Customers have already traded over $4 billion so far in 2026, so we're seeing the momentum continue,” CEO Vlad Tenev said.

“So prediction markets: fastest growing business in our history, $300+ million run rate in its first year. I think we're just at the beginning of a prediction market super cycle that could drive trillions in annual volume over time. This year is going to be a big year,” Tenev said during a post-earnings call.

In an interview with Yahoo Finance, Autonomous Research senior analyst Christian Bolu said there is significant competition in the prediction market segment, but the “good thing” about Robinhood is that, from a business perspective, its value proposition is distribution. “There could be a lot of competition around the products. Kalshi, Polymarket, the exchanges, everybody can launch their own products, but they all still need the pipes to distribute that through, and that is where Robinhood really stands out,” he said.

“They have the type of customers … where prediction markets really appeal to. So despite an increase in competition, I see Robinhood coming out as a winner here,” he added.

Robinhood Gold Subscribers

The company said that Robinhood Gold grew 58% to a record 4.2 million subscribers. “We think Gold is the best deal in financial services, and we're going to keep adding to its value prop,” Verma said. Robinhood Gold is the company’s premium subscription plan and includes features such as earning interest on uninvested cash in a Robinhood brokerage account.

What Is Retail Thinking About HOOD?

Retail sentiment on Robinhood jumped to ‘extremely bullish’ from ‘bearish’ territory a month ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

A user on Stocktwits noted that “8-10% up or down is nothing” for Robinhood.

In the last 24 hours, retail message volume on Stocktwits for the stock jumped nearly 260%, and in the last seven days, the ticker saw a 1.5% spike in followers on the platform.

A bullish user on Stocktwits said the stock was down 50% from its all-time high but that “smart ones are loading.”

Shares of Robinhood have gained more than 53% in the last 12 months.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: Why Did Moderna Stock Tumble Nearly 10% After Hours Today?

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