Robinhood's stock price dropped around 9% recently. This happened after the company reported lower trading activity across different markets. In November, trading volumes fell by 37% for stocks, 28% for options, and 12% for cryptocurrencies. This decline is likely due to worries about market bubbles and overall economic uncertainty.

Since its peak in October, Robinhood's stock has decreased by about 20%. Investors reacted strongly to this news, mainly because the company relies heavily on transaction-based revenue. This type of revenue makes up more than half of Robinhood's total income.

However, some experts see this as a good time to invest. Brett Knoblauch, a senior analyst at Cantor Fitzgerald, suggests that long-term investors should consider buying now. He points out that the decline in trading volume was expected and that Robinhood is making progress in expanding internationally. The company recently entered the Indonesian market, which has a large number of investors.

Another reason for optimism is Robinhood's entry into prediction markets. This segment is growing rapidly and could drive the stock price higher. Knoblauch believes that this growth could push the stock to $152 in 2026, which is about a 22% increase from its current price. Options traders also seem optimistic, with data suggesting the stock could rise above $150 in the first quarter of 2026.

Overall, Wall Street analysts are bullish on Robinhood's stock. The consensus rating is "Moderate Buy, " with an average price target of $155. This indicates a potential upside of more than 25% from the current price.


# **Robinhood's Stock Drops Amid Declining Trading Activity**

## **Recent Decline**
- **Stock Price Drop:** Around 9%
- **Cause:** Lower trading activity across markets
  - **November Trading Volumes:**
    - **Stocks:** Down 37%
    - **Options:** Down 28%
    - **Cryptocurrencies:** Down 12%
  - **Market Concerns:** Worries about bubbles and economic uncertainty

## **Long-Term Outlook**
- **Since Peak in October:** Stock down ~20%
- **Revenue Concern:** Over 50% of income from transaction-based revenue

## **Optimistic Views**
- **Brett Knoblauch (Cantor Fitzgerald):** Suggests buying for long-term investors
  - **International Expansion:** Recent entry into the Indonesian market
  - **Prediction Markets:** Rapid growth potential
    - **Price Target:** $152 by 2026 (~22% increase from current price)
  - **Options Traders:** Expect stock to rise above $150 by Q1 2026

## **Wall Street Consensus**
- **Rating:** "Moderate Buy"
- **Average Price Target:** $155
  - **Potential Upside:** Over 25% from current price



Robinhood's Stock Takes a Hit: Is It Time to Jump In?

Recent Decline

Long-Term Outlook

Optimistic Views

Wall Street Consensus

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