1 Reason to Buy Robinhood Stock on the Dip
Key Points
Robinhood’s stock price dropped after the company's fourth-quarter revenue fell short of expectations.
Net deposits reached nearly $16 billion in the fourth quarter, with $7 billion already deposited in the first quarter.
Growth in retirement accounts indicates many customers are bringing over assets for the long haul.
- 10 stocks we like better than Robinhood Markets ›
Shares of Robinhood Markets (NASDAQ: HOOD) sold off sharply after the company released fourth-quarter financial results. While the company reported a 27% year-over-year increase in revenue, it slightly missed estimates. The stock entered the year trading at a valuation that reflects high growth expectations, so it's not surprising to see a small miss turn into a sharp sell-off after the earnings report.
But one reason the dip is a buying opportunity is that customers continue to bring more assets to Robinhood's platform. This has been a significant growth driver over the past few years, and it continues to point to a bright future for the platform.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
Net deposits totaled nearly $16 billion in the fourth quarter, representing an annualized growth rate of 19% relative to total platform assets in the previous quarter.
Importantly, net deposits have already hit $7 billion through the early part of the first quarter of 2026. This is crucial because as more assets move to the platform, it creates more opportunities to generate revenue through interest- and fee-related products, such as lending and the new Robinhood Banking service, which is just starting to roll out to Gold members.
The growth in deposits shows Robinhood building long-term relationships with its customers, as it also reported a 57% year-over-year increase in the number of retirement accounts opened last quarter. The revenue miss doesn't tell the story of the real growth happening on Robinhood's platform, which indicates where the stock is headed over the next several years. Buying the stock while it's down could pay off as the company continues to grow.
Should you buy stock 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 $414,554!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,120,663!*
Now, it’s worth noting Stock Advisor’s total average return is 884% — a market-crushing outperformance compared to 193% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of February 16, 2026.
John Ballard has positions in Robinhood Markets. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
