Why Did Robinhood Stock Pop Today?
Key Points
A crypto crash hurt Robinhood stock on Monday.
A crypto rebound is driving Robinhood stock back up on Tuesday.
- 10 stocks we like better than Robinhood Markets ›
What goes down must come back up. This is the hope of cryptocurrency traders -- and also of Robinhood (NASDAQ: HOOD) investors.
Yesterday if you recall, Robinhood stock tripped and fell more than 4% after traders sold off cryptocurrencies such as Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and especially Solana (CRYPTO: SOL). Worries that China might crack down on "illegal activities involving" stablecoins spooked crypto traders, and because crypto trading is the fastest growth segment of all trading at Robinhood, investors in the online brokerage worried a rush to the exits in crypto could hurt Robinhood's growth rate.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
But what happens if crypto traders don't flee the market?
Image source: Robinhood Markets.
The crypto empire strikes back
That's what stock investors may be mulling this morning, as Bitcoin prices bounce back 7.5%, recovering all of yesterday's losses and more, while Ethereum and Solana record even stronger gains (up 9.6% and 12.8%, respectively).
If you ask stock investors, this must be good news for Robinhood as well, and the online brokerage stock is up 2.9% through 12:10 p.m. ET.
Why now might be a good time to buy Robinhood stock
In last month's Q3 earnings report, Robinhood credited crypto trading as the primary reason its revenue more than doubled year over year. In Q2, crypto trades provided as much as 30% of "transaction-based revenue," and in Q3, crypto volume more than doubled sequentially.
Clearly, crypto is driving Robinhood's value at the moment. For that reason, today's quick rebound in crypto trading has to be seen as a positive for Robinhood stock.
Admittedly, at a stock price 53 times trailing earnings, Robinhood shares look expensive. As long as the cryptocurrency rollercoaster keeps traders engaged, and trading on the platform, though, it's possible Robinhood's growth rate can still justify the price.
Should you invest $1,000 in Robinhood Markets right now?
Before you buy stock in Robinhood Markets, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Robinhood Markets wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $588,530!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,102,885!*
Now, it’s worth noting Stock Advisor’s total average return is 1,012% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of December 1, 2025
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and Solana. The Motley Fool has a disclosure policy.
Recommended Articles
