Robinhood Shares Drop 8% on Revenue Miss
Robinhood shares falter on a revenue miss despite optimistic analyst coverage, while miner Canaan sees stock struggles amid strong earnings. Elsewhere, institutional giants like Goldman Sachs and Franklin Templeton adjust their strategies in the evolving digital asset landscape. Stay up on the crypto news that matters with "Crypto Currents," daily from The Fly. Join us at 2 PM ET for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio.ROBINHOOD SHARES DIP ON REVENUE MISS WHILE BERNSTEIN SEES UPSIDE:Shares of Robinhoodfell approximately 8% in after-hours trading Tuesday following a fourth-quarter revenue miss. The trading platform reported record net revenues of $1.28B, which fell short of Wall Street's $1.34B expectation. The shortfall was driven largely by a 38% year-over-year decline in crypto transaction revenue to $221M, as trading volumes on the core app dropped 52%. Despite the immediate sell-off, analysts at Bernstein maintained an Outperform rating with a $160 price target, characterizing the weakness as temporary "crypto jitters." The analysts highlighted that Robinhood's prediction markets reached new records and noted the company's planned expansion into tokenization. Separately,that Robinhood general manager Johann Kerbrat criticized the traditional T+1 stock settlement cycle as an "antiquated relic," advocating for instant settlement and confirming the company's push toward 24/7 trading via its new Ethereum Layer 2 blockchain.CANAAN STOCK SINKS DESPITE STRONG Q4 EARNINGS:Mining manufacturer Canaansaw it's shares drop roughly 7% on Tuesday, even. Revenue surged 121% year-over-year to $196.3M, driven by a 60% increase in computing power sales and a 98.5% jump in mining revenue. The company now holds a record 1,750 bitcoinin its treasury. However, the stock price slid to 56c, exacerbating fears regarding a potential Nasdaq delisting. The exchange has warned Canaan that it must raise its share price above $1 by July 13 to remain compliant with minimum bid rules.INSTITUTIONAL ADOPTION SHIFTS WITH GOLDMAN SACHS AND FRANKLIN TEMPLETON:Major financial institutions are recalibrating their approach to digital assets., Goldman Sachsreduced its bitcoin ETF holdings by 40% in the Q4. Conversely, asset managers continue to deepen their blockchain integration., executives from Franklin Templetonand SWIFT stated at a recent conference that the future of banking is "24/7 and natively on-chain," with Franklin Templeton focusing on tokenizing money market funds to reduce operational costs. In Europe, Ripple. Furthermore,to bitcoin and etherETFs from BlackRockand WisdomTreefor its clients, marking a pivot from its previous restrictive stance.LEGISLATIVE STALEMATES AND MACROECONOMIC DATA:Regulatory discussions in Washington remain intense following a high-profile White House meeting regarding stablecoin yields and market structure., sources from both banking and crypto sectors termed the session "productive," though no compromise was reached by the end. While the, industry executives expressed varying views on the path forward. Ripple chief legal officer Stuart Alderotythat "compromise is in the air" and urged lawmakers to seize the momentum to deliver a win for consumers. However, BitGo CEO Mike Belshe took a firmer stance,that both sides must stop "re-litigating GENIUS" and instead focus on passing "CLARITY" to ensure market structure is not delayed by stablecoin debates. On the macro front, the U.S. added a stronger-than-expected 130,000 jobs in January, sending the unemployment rate down to 4.3%. Following the data, bitcoin pared earlier losses to trade modestly higher.PRICE ACTION:As of time of writing, bitcoin was trading at $66,317.99, while ether was trading at $1,926.60,.
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Robinhood's Q4 Earnings Report Triggers Stock Sell-Off
- Earnings Performance: Robinhood reported a 27% year-over-year revenue increase in Q4, slightly missing estimates, which led to a sharp stock sell-off, reflecting market sensitivity to high growth expectations and potentially impacting investor confidence in the short term.
- Net Deposit Growth: Net deposits totaled nearly $16 billion in Q4, representing a 19% annualized growth rate relative to total platform assets from the previous quarter, indicating sustained customer trust and inflow of assets, enhancing future revenue potential.
- Deepening Customer Relationships: The report highlighted a 57% year-over-year increase in retirement accounts opened, demonstrating significant progress in building long-term customer relationships, which will lay the groundwork for future revenue growth.
- Investment Opportunity: Despite the revenue miss, the ongoing growth in customer assets and the rollout of new banking services provide strong support for Robinhood's future development, suggesting that the current stock dip may present a buying opportunity for investors.
ROBINHOOD VENTURES FUND I (RVI) DECLARES THE START OF ITS INITIAL PUBLIC OFFERING
Announcement of IPO: Robinhood Ventures Fund I (RVI) has announced the launch of its initial public offering (IPO).
Investment Opportunity: The IPO aims to provide investors with an opportunity to participate in the fund's growth and investment strategy.
Robinhood's Stock Surges Over 600% in Three Years
- Significant Revenue Growth: Robinhood's revenue surged from $1.4 billion in 2022 to $4.5 billion in 2025, achieving a compound annual growth rate of 66%, indicating substantial success in attracting retail investors and solidifying its market position.
- Profitability Improvement: Robinhood turned profitable in 2024, with net income rising 33% to $1.9 billion in 2025, demonstrating the sustainability and profitability potential of its business model, which is expected to continue attracting investor interest.
- Gold Subscription Platform Expansion: By the end of 2025, Robinhood's Gold subscription platform served 4.2 million customers, driving user base growth and laying the groundwork for future revenue increases, with expectations of enhanced customer loyalty.
- HODU ETF Risks and Rewards: Direxion's HODU ETF aims to double Robinhood's daily returns; however, its structure is better suited for short-term traders due to high fees and volatility, prompting long-term investors to exercise caution, especially in unstable market conditions.
Robinhood Ventures Fund I Set to IPO on NYSE
- IPO Announcement: Robinhood Ventures Fund I is set to IPO on the New York Stock Exchange under the ticker RVI, with an expected share price of $25, aiming to provide everyday investors access to private markets and address longstanding inequities in capital markets.
- Diverse Portfolio: The fund will invest in a concentrated portfolio of private companies, including Airwallex, Boom, and Databricks, with plans to add more companies over time, thereby enhancing investment options for investors seeking exposure to high-growth private firms.
- Optimized Fee Structure: RVI will reduce its management fee to 1.00% for the first six months post-IPO, reverting to 2.00% thereafter, with no performance fees, which will lower costs for investors and increase the fund's attractiveness to a broader audience.
- Enhanced Market Access: Designed as a closed-end fund with no accreditation requirements and no minimum investment, RVI offers daily liquidity, aiming to expand access for retail investors to private markets, catering to the growing demand for investment opportunities.
Tax Refunds Expected to Boost Investment in Stocks and Bitcoin
- Tax Refund Impact: According to Wells Fargo's analysis, $150 billion is expected to flow into markets by the end of March as over 60% of tax refunds are issued, which will boost investments in risk assets like stocks and bitcoin.
- High-Income Consumer Reinvestment: Analyst Ohsung Kwon noted that additional savings from tax refunds will flow back into equities, particularly among high-income consumers, significantly enhancing their investment willingness and suggesting a return of the 'YOLO' investment strategy.
- Bitcoin as a Liquidity Proxy: Analysts indicated that bitcoin can serve as a proxy for liquidity, signaling shifts in investment patterns; despite a $105 billion decline in domestic liquidity over the past four weeks, bitcoin has pulled back approximately 29%.
- Stock Performance Expectations: Wells Fargo identified over two dozen stocks likely to outperform during tax season, including Robinhood and Boeing, the latter seeing a 32% increase in share price over the past year and delivering 46 airplanes in January, marking the third highest for that month in the company's history.
Gemini Space Station Reports Exit of Three Executives, Leading to Stock Decline.
- Executive Departures: Gemini Space Station announced the departure of three top executives, contributing to its turbulent start in 2026.
- Financial Performance: The platform reported weaker-than-expected preliminary results for fiscal 2025, leading to a sharp decline in stock prices.
Robinhood's Q4 Earnings Report Triggers Stock Sell-Off
- Earnings Performance: Robinhood reported a 27% year-over-year revenue increase in Q4, slightly missing estimates, which led to a sharp stock sell-off, reflecting market sensitivity to high growth expectations and potentially impacting investor confidence in the short term.
- Net Deposit Growth: Net deposits totaled nearly $16 billion in Q4, representing a 19% annualized growth rate relative to total platform assets from the previous quarter, indicating sustained customer trust and inflow of assets, enhancing future revenue potential.
- Deepening Customer Relationships: The report highlighted a 57% year-over-year increase in retirement accounts opened, demonstrating significant progress in building long-term customer relationships, which will lay the groundwork for future revenue growth.
- Investment Opportunity: Despite the revenue miss, the ongoing growth in customer assets and the rollout of new banking services provide strong support for Robinhood's future development, suggesting that the current stock dip may present a buying opportunity for investors.
ROBINHOOD VENTURES FUND I (RVI) DECLARES THE START OF ITS INITIAL PUBLIC OFFERING
Announcement of IPO: Robinhood Ventures Fund I (RVI) has announced the launch of its initial public offering (IPO).
Investment Opportunity: The IPO aims to provide investors with an opportunity to participate in the fund's growth and investment strategy.
Robinhood's Stock Surges Over 600% in Three Years
- Significant Revenue Growth: Robinhood's revenue surged from $1.4 billion in 2022 to $4.5 billion in 2025, achieving a compound annual growth rate of 66%, indicating substantial success in attracting retail investors and solidifying its market position.
- Profitability Improvement: Robinhood turned profitable in 2024, with net income rising 33% to $1.9 billion in 2025, demonstrating the sustainability and profitability potential of its business model, which is expected to continue attracting investor interest.
- Gold Subscription Platform Expansion: By the end of 2025, Robinhood's Gold subscription platform served 4.2 million customers, driving user base growth and laying the groundwork for future revenue increases, with expectations of enhanced customer loyalty.
- HODU ETF Risks and Rewards: Direxion's HODU ETF aims to double Robinhood's daily returns; however, its structure is better suited for short-term traders due to high fees and volatility, prompting long-term investors to exercise caution, especially in unstable market conditions.
Robinhood Ventures Fund I Set to IPO on NYSE
- IPO Announcement: Robinhood Ventures Fund I is set to IPO on the New York Stock Exchange under the ticker RVI, with an expected share price of $25, aiming to provide everyday investors access to private markets and address longstanding inequities in capital markets.
- Diverse Portfolio: The fund will invest in a concentrated portfolio of private companies, including Airwallex, Boom, and Databricks, with plans to add more companies over time, thereby enhancing investment options for investors seeking exposure to high-growth private firms.
- Optimized Fee Structure: RVI will reduce its management fee to 1.00% for the first six months post-IPO, reverting to 2.00% thereafter, with no performance fees, which will lower costs for investors and increase the fund's attractiveness to a broader audience.
- Enhanced Market Access: Designed as a closed-end fund with no accreditation requirements and no minimum investment, RVI offers daily liquidity, aiming to expand access for retail investors to private markets, catering to the growing demand for investment opportunities.
Tax Refunds Expected to Boost Investment in Stocks and Bitcoin
- Tax Refund Impact: According to Wells Fargo's analysis, $150 billion is expected to flow into markets by the end of March as over 60% of tax refunds are issued, which will boost investments in risk assets like stocks and bitcoin.
- High-Income Consumer Reinvestment: Analyst Ohsung Kwon noted that additional savings from tax refunds will flow back into equities, particularly among high-income consumers, significantly enhancing their investment willingness and suggesting a return of the 'YOLO' investment strategy.
- Bitcoin as a Liquidity Proxy: Analysts indicated that bitcoin can serve as a proxy for liquidity, signaling shifts in investment patterns; despite a $105 billion decline in domestic liquidity over the past four weeks, bitcoin has pulled back approximately 29%.
- Stock Performance Expectations: Wells Fargo identified over two dozen stocks likely to outperform during tax season, including Robinhood and Boeing, the latter seeing a 32% increase in share price over the past year and delivering 46 airplanes in January, marking the third highest for that month in the company's history.
Gemini Space Station Reports Exit of Three Executives, Leading to Stock Decline.
- Executive Departures: Gemini Space Station announced the departure of three top executives, contributing to its turbulent start in 2026.
- Financial Performance: The platform reported weaker-than-expected preliminary results for fiscal 2025, leading to a sharp decline in stock prices.
