Robinhood shares slide toward $88 as crypto-bill delay clouds earnings outlook
HOOD stock fell below key support ahead of Q2 results, with US crypto legislation delays and Robinhood Chain's muted debut weighing on sentiment.
Robinhood Markets shares fell for a second consecutive session on 28 July, dropping as much as 3.68% to trade around $92.13, as investors weighed stalled US crypto legislation and softer trading volumes against Wednesday’s second-quarter earnings release. The stock touched an intraday low of $88.21 before paring some losses, leaving it roughly 23% below its July peak near $120.
The retreat, reported by both crypto.news and TokenPost, has pushed HOOD below its 50-day moving average and a technical support level near $95, with analysts now watching $89.13 as the next line of defence. The decline mirrored broader weakness across technology stocks and, according to crypto.news, was compounded by uncertainty surrounding pending US crypto legislation, which has weighed on crypto-linked equities more generally.
Earnings due alongside Microsoft and Meta
Robinhood is due to report second-quarter fiscal 2026 results after markets close on 29 July, alongside Microsoft and Meta, making the session a significant test for US technology earnings. Wall Street estimates put Robinhood’s second-quarter revenue between $1.24 billion and $1.28 billion, up from $1.07 billion in the first quarter and representing growth of roughly 25% at the low end versus the $989 million reported in the same quarter of 2025.
The comparison carries added weight after Robinhood’s first-quarter results disappointed markets. The company reported $1.07 billion in revenue against a $1.14 billion consensus estimate, with earnings per share of $0.38 versus an expected $0.40 — a miss that triggered an intraday stock decline of more than 10% at the time.
Analysts split on valuation
Sell-side views on Robinhood remain divided. Truist Financial has reaffirmed a Buy rating with a $130 price target, while Morgan Stanley holds a $124 target under a Hold rating. Rothschild & Co Redburn, by contrast, maintains a Sell rating, having nudged its price target up only slightly to $78 from $76.
Bernstein has flagged Robinhood’s prediction-markets business as a potential offset to softer conventional trading volumes, estimating it could generate $586 million in revenue during 2026 and setting a $160 price target — though the firm notes that valuation depends on continued growth and a stable regulatory environment.
Robinhood Chain yet to move the share price
The company’s blockchain infrastructure launch has so far failed to lift sentiment. HOOD traded near $100 when Robinhood Chain was unveiled on 1 July but has since fallen below $93, according to crypto.news, suggesting investors are treating the platform as a longer-term bet rather than an immediate catalyst for the stock.
Attention on Wednesday’s call is likely to centre on whether crypto, equity and options trading activity held up through a weaker second quarter, and on management’s guidance for the remainder of 2026 — commentary that could prove as market-moving as the headline revenue figure itself, particularly with the shares now testing multiple technical support levels.
Read more: Robinhood Chain deposits rise as memecoin fervour behind its launch cools
