Overview
- The stock rose about 3% by midday Tuesday after cryptocurrencies reversed a sharp Monday sell-off.
- Bitcoin gained roughly 7.5% with Ethereum and Solana up about 9.6% and 12.8%, moves seen as supportive for trading activity on Robinhood.
- Monday’s decline followed worries about a potential Chinese crackdown on illegal stablecoin-related activity that pressured crypto markets.
- Robinhood’s Q3 update credited crypto for revenue that more than doubled year over year, with crypto volumes more than doubling sequentially after comprising about 30% of Q2 transaction-based revenue.
- Despite Tuesday’s lift, shares are still roughly 20% below their October peak and fell 13% in November, underscoring valuation sensitivity and reliance on crypto-driven revenue.