Core Insights - Robinhood's stock is experiencing a significant decline, reaching a new low, primarily influenced by the recent selloff in bitcoin [1] Company Summary - The impact of cryptocurrency trading on Robinhood's overall business is relatively minor, despite the current market volatility [1]

Core Viewpoint - Robinhood's aspirations to become a "financial super app" are not resonating with Wall Street, as evidenced by a 9% drop in shares following disappointing Q4 earnings that fell short of analyst expectations for both total net revenue and crypto-specific revenue [1]. Group 1: Company Strategy and Performance - Robinhood aims to attract active traders, increase wallet share, and expand globally while targeting institutional clients, indicating a shift from its original focus [2]. - The company's growth engine, retail trading, is struggling to meet Wall Street's aggressive projections, raising concerns about the gap between management's long-term optimism and the current market reality, particularly regarding crypto fatigue [2]. Group 2: Revenue Insights - CFO Shiv Verma highlighted that crypto accounted for only about 18% of revenue last year, with over 80% coming from non-crypto sources, reinforcing the company's long-term bullish stance on the digital asset landscape [3]. - Despite the current challenges, Robinhood is optimistic about reviving its crypto segment through initiatives like the tokenization of real-world assets and a focus on the institutional market, which is increasingly viewing crypto as a legitimate asset class [4]. Group 3: Market Reactions and Analyst Perspectives - Some analysts perceive the recent share price decline as a temporary setback, suggesting that investors should endure the current volatility in the crypto market, with expectations of recovery starting from Q2 [5].

Core Viewpoint - The article compares The Charles Schwab Corporation (SCHW) and Robinhood Markets, Inc. (HOOD) to determine which stock is more attractive to value investors [1] Group 1: Zacks Rank and Earnings Outlook - SCHW has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while HOOD has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, suggesting that SCHW is likely experiencing a more favorable earnings outlook than HOOD [3] Group 2: Valuation Metrics - SCHW has a forward P/E ratio of 16.54, significantly lower than HOOD's forward P/E of 31.41, indicating that SCHW may be undervalued [5] - SCHW's PEG ratio is 0.77, while HOOD's PEG ratio is 1.21, suggesting that SCHW offers better value relative to its expected earnings growth [5] - SCHW's P/B ratio is 4.07 compared to HOOD's P/B of 7.66, further indicating that SCHW is more attractively valued [6] - Based on these metrics, SCHW earns a Value grade of B, while HOOD receives a Value grade of D, making SCHW the preferred choice for value investors [6]

Core Viewpoint - Cathie Wood's ARK Invest has significantly increased its holdings in Robinhood Markets, viewing the recent stock decline as a buying opportunity rather than a warning sign [1][5]. Group 1: Investment Activity - ARK Invest purchased approximately $50 million worth of Robinhood shares in early February 2026, with the largest single-day purchase of $23.8 million occurring on February 11 [2][3]. - The February purchases included $21.7 million on February 2 and $5.2 million on February 3, bringing the total allocation for the month to around $50.7 million [3]. - The February 11 purchase represented 10.63% of ARKK's position in Robinhood added in a single day, making Robinhood one of the top 10 holdings across ARK funds [4]. Group 2: Company Performance - Robinhood reported diluted earnings per share of $0.66 for the fourth quarter of 2025, exceeding analyst expectations, while total net revenue increased by 27% year-over-year to $1.28 billion [6]. - Transaction-based revenue rose by 15% to $776 million, although the crypto segment experienced a significant decline [6]. - Crypto transaction revenue fell by 38% to $221 million, indicating a slowdown in digital asset trading activity, with total crypto notional volumes at $82 billion, reflecting a 52% year-over-year decline [7].

Group 1 - Barclays has lowered the price target on Robinhood (HOOD) to $124 from $159 while maintaining an Overweight rating on the shares following the Q4 report [1] - The company missed revenue expectations but remains focused on its ambitious long-term goals, according to the analyst [1] - The recent slowdown in net new asset growth is expected to negatively impact Robinhood's shares, which are down 12%, or $10.50, to $75.10 in morning trading [1] Group 2 - Barclays attributes the softer than expected Q4 results to lower take rates in options and crypto, which have impacted transaction revenues [1]

Group 1: Robinhood - Robinhood shares fell approximately 8% in after-hours trading due to a fourth-quarter revenue miss, reporting net revenues of $1.28 billion, below Wall Street's expectation of $1.34 billion [2] - The revenue shortfall was primarily driven by a 38% year-over-year decline in crypto transaction revenue to $221 million, with trading volumes on the core app dropping 52% [2] - Bernstein analysts maintained an Outperform rating with a $160 price target, viewing the revenue weakness as temporary "crypto jitters" and highlighting record predictions markets and plans for tokenization [2] Group 2: Canaan - Canaan's shares dropped roughly 7% despite reporting its strongest quarter in three years, with revenue surging 121% year-over-year to $196.3 million [3] - The revenue increase was driven by a 60% rise in computing power sales and a 98.5% jump in mining revenue, while the company holds a record 1,750 bitcoin in its treasury [3] - Concerns about a potential Nasdaq delisting were exacerbated as the stock price slid to 56 cents, with a warning to raise the share price above $1 by July 13 to remain compliant [3] Group 3: Institutional Adoption - Goldman Sachs reduced its bitcoin ETF holdings by 40% in Q4, indicating a recalibration in its approach to digital assets [4] - Franklin Templeton and SWIFT executives emphasized the future of banking as "24/7 and natively on-chain," with a focus on tokenizing money market funds to lower operational costs [4] - Danske Bank opened access to bitcoin and ether ETFs from BlackRock and WisdomTree for its clients, marking a shift from its previous restrictive stance [4]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1][2] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [4] - The Growth Score evaluates a company's financial health and future outlook, analyzing projected earnings and sales for sustainable growth [5] - The Momentum Score capitalizes on price trends, using factors like weekly price changes to identify high-momentum stocks [6] - The VGM Score combines all three Style Scores, providing a comprehensive rating based on value, growth, and momentum [7] Zacks Rank and Style Scores Interaction - The Zacks Rank, based on earnings estimate revisions, has shown a strong historical performance, with 1 (Strong Buy) stocks yielding an average annual return of +23.83% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 stocks rated, making it essential to utilize Style Scores to narrow down choices [9] - For optimal returns, stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended [10] - Stocks rated 4 (Sell) or 5 (Strong Sell) should be avoided, even if they have high Style Scores, due to their declining earnings forecasts [11] Company Spotlight: Robinhood Markets, Inc. - Robinhood Markets, Inc. is a financial services company offering commission-free trading in various financial instruments, aiming to democratize finance [12] - Currently rated 3 (Hold) by Zacks, Robinhood has a VGM Score of B and a Growth Style Score of A, indicating strong growth potential with a forecasted year-over-year earnings growth of 21% [13] - The company has seen positive revisions in earnings estimates, with the Zacks Consensus Estimate increasing by $0.16 to $2.48 per share for fiscal 2026 [13] - With a solid Zacks Rank and favorable Style Scores, Robinhood is positioned as a potential investment opportunity [14]

Core Insights - Robinhood Markets reported significant growth in Q4 2025, with total net revenues reaching $1.28 billion, a 27% increase from Q4 2024, despite challenges in cryptocurrency trading [2][3] - The company is evolving into a broader financial services provider, achieving record figures in revenue, user engagement, and asset management [1] Financial Performance - Transaction-based revenues increased by 15% to $776 million, with options trading up 41% to $314 million and equities up 54% to $94 million, while cryptocurrency revenues fell 38% to $221 million [2] - Net interest revenues rose 39% to $411 million, and net income was $605 million, with diluted EPS at $0.66, down from $1.01 the previous year but above analyst expectations [3] - For the full year, net revenues surged 52% to $4.5 billion, and net income increased by 33% to $1.9 billion, resulting in an EPS of $2.05 [3] User Metrics - Funded customers reached 27 million, a 7% year-over-year increase, and Robinhood Gold subscribers grew by 58% to 4.2 million [4] - Assets under custody increased by 68% to $324 billion, driven by record net deposits of $68.1 billion over the past year [4] Product Innovations - The company launched prediction markets with 12 billion event contracts traded in 2025 and expanded retirement accounts, banking services, and international offerings [5] - Executives expressed optimism about the future, aiming to create a comprehensive "Financial SuperApp" [6] Market Response - Despite strong financial results, Robinhood's stock fell approximately 8% in after-hours trading due to revenues falling short of Wall Street's expectations [7] - Analysts noted concerns over decelerating growth rates and a decline in monthly active users amid a slowdown in the crypto market [7] Analyst Outlook - Analysts remain generally bullish on Robinhood's prospects, with a consensus price target between $123 and $146, indicating potential upside of 50% to 70% [8] - Higher-end forecasts reach $180, driven by opportunities in prediction markets and international expansion, with most ratings leaning towards "Buy" [9]

Robinhood ( HOOD ) reported its 4Q25 after the bell on Tuesday. Heading into print, the stock was falling out of market favor, having shed almost 32% of its value YTD and dropping from highs of $153.86 to $76.81. The quarter's resultsWe’re a team of former technology engineers who turned our passion for the sector into an investing edge. With over 40 years of combined experience, we’ve learned that individual investors often don’t get access to the same depth of research as institutions.That’s why we create ...

Market Sentiment - The CNN Money Fear and Greed index showed a decline in overall market sentiment, remaining in the "Neutral" zone with a current reading of 48.9, down from 50.9 [1][4] - U.S. stocks settled mostly lower, with the Dow Jones index falling more than 50 points, ending a three-session winning streak [1][3] Economic Data - Nonfarm payrolls rose by 130,000, nearly double the economists' expectations of 70,000, with private-sector employment contributing 172,000 of those gains [2] - The unemployment rate unexpectedly declined to 4.3% from 4.4% [2] Sector Performance - Most sectors on the S&P 500 closed positively, with energy, materials, and consumer staples stocks recording the biggest gains [2] - Financial and communication services stocks closed lower, bucking the overall market trend [2] Company Highlights - Micron Technology Inc. (NASDAQ:MU) saw a significant increase of around 10% after Morgan Stanley raised its price target to $450 [1]