Robinhood Markets Inc. (NASDAQ:HOOD) shares are trading lower Friday after the company’s October operating data showed a sharp pullback in crypto trading activity. A Goldman Sachs price target cut, a crypto selloff and a broad market decline are adding to the pressure. Here’s what you should know.
- Robinhood shares are sliding. What’s behind HOOD decline?
Crypto Volumes Cut Nearly in Half From a Year Ago
Robinhood’s crypto notional trading volumes came in at $17 billion in October. That was down 21% from September and 48% from a year earlier.
The decline hit both of Robinhood’s crypto venues. Volumes on the Robinhood app fell 24% month over month to $6.8 billion and were down 51% from October 2025. Bitstamp volumes slid 18% from September to $10.2 billion, a 45% year-over-year drop.
Daily activity weakened as well. Average daily crypto volumes on the Robinhood app dropped 26% from September to $219 million, while Bitstamp’s average daily volumes fell 21% to $328 million.
Platform Assets Slip Despite $15.1 Billion in Net Deposits
Total platform assets ended October at $383 billion, down 3% from September but up 12% year over year. Net deposits totaled $15.1 billion for the month, which works out to a 46% annualized growth rate based on September platform assets. Over the trailing 12 months, net deposits reached $80.5 billion.
Funded customers rose by about 130,000 from September to 28.9 million, an increase of roughly 1.8 million from a year earlier.
Cash and deposit balances fell 20% from September to $16.4 billion. Robinhood attributed most of that drop to heavy net buying by customers and said the decline had largely reversed in early November. Cash sweep balances dipped 5% month over month to $30.8 billion.
Event Contracts, Margin Balances Keep Climbing
Outside crypto, Robinhood’s trading picture was mixed:
- Event contracts: Contracts traded rose 5% from September to 5.9 billion, up 136% year over year.
- Equities: Equity notional volumes edged up 1% month over month to $325 billion, though average daily volumes slipped 4%.
- Options: Options contracts traded were flat with September at 289 million and up 8% from a year ago.
Margin balances climbed 4% from September to $22.9 billion, a 39% year-over-year increase. Total securities lending revenue rose 6% month over month to $34 million but was down 43% from October 2025.
Goldman Cut, Crypto Slide Add to Pressure
Goldman Sachs analyst James Yaro maintained a Buy rating on Robinhood but trimmed his price target to $115 from $128.
Crypto prices are also falling. According to CoinDesk, the crypto selloff picked up early Friday, with Bitcoin slipping below $70,000 and ether falling under $2,000, which set off heavy liquidations in the futures market.
The broader market is under pressure as well. The Nasdaq was down 1.72%, and the S&P 500 was off 1.10% in morning trading as wholesale inflation rose.
Robinhood Shares Under Pressure
HOOD Price Action: Robinhood shares are down 4.22% at $77.92 at the time of publication on Friday, according to Benzinga Pro.
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