Robinhood Markets (HOOD) Stock: This 10% Drop Could Be Your Buying Opportunity

TLDR

• Robinhood Markets (HOOD) fell 9.7% on Monday to $89.85, making it the worst performer in the S&P 500, with shares down 21% in 2026
• Bitcoin dropped to a 10-month low of $74,553 before recovering to $78,500, hurting Robinhood’s crypto-dependent revenue stream
• The end of football season threatens prediction market revenue, as football comprised almost half of Kalshi’s total volume since August
• Piper Sandler maintains an Overweight rating with a $155 price target, citing upcoming sports events and the CLARITY Act as potential catalysts
• Robinhood’s 14-day RSI sits at 23, placing the stock in oversold territory and signaling a potential near-term rebound

Robinhood Markets took a beating on Monday. The stock dropped 9.7% to $89.85, making it the worst performer in the S&P 500.

Robinhood Markets, Inc., HOOD

The decline capped off a rough start to 2026 for the brokerage. Shares are now down 21% year-to-date.

That’s a sharp reversal from last year’s performance. The stock jumped more than 200% in 2025.

Bitcoin’s tumble played a major role in Monday’s selloff. The cryptocurrency hit a 10-month low of $74,553 in the early morning hours.

The drop came after Kevin Warsh’s nomination to lead the Federal Reserve spooked digital-asset traders. Bitcoin later recovered to around $78,500.

Robinhood offers trading in more than 50 crypto tokens. Falling crypto prices and reduced trading volume directly impact the company’s bottom line.

The stock has historically shown a strong correlation with Bitcoin’s value. When crypto tanks, Robinhood shares typically follow.

Football Season’s Final Whistle

Here’s where things get interesting. The end of football season is also weighing on the stock, according to Piper Sandler analysts.

Robinhood’s prediction markets offering has become the company’s fastest-growing product line by revenue. Football drove almost half of the total volume on Kalshi, Robinhood’s main prediction markets partner, since August.

With the season wrapping up this Sunday, investors are worried about a revenue gap. The question is whether other sports can fill the void.

Piper Sandler analyst Patrick Moley thinks they can. The winter Olympics start this month, and the NCAA basketball tournament kicks off in March.

Reasons to Stay Optimistic

The firm maintains an Overweight rating with a $155 price target. That represents potential upside of more than 70% from current levels.

Moley points to the CLARITY Act as another positive catalyst. The Senate Agriculture Committee advanced the crypto market structure bill last week.

This happened after Coinbase Global initially withdrew support in January. The legislation could boost blockchain adoption and help Robinhood scale its token offerings.

Looking further ahead, the 2026 FIFA World Cup and midterm elections should drive prediction market volume later this year. New Commodity Futures Trading Commission Chairman Michael Selig may also provide regulatory clarity.

Robinhood’s technical indicators suggest the selloff may have gone too far. The stock’s 14-day relative strength index sits at about 23.

That puts it firmly in oversold territory. Historically, such levels often precede near-term rebounds.

The consensus rating on Wall Street remains at Moderate Buy. The mean price target stands at approximately $151.

Robinhood launched a stocks and shares individual savings account in the UK on Monday. The move could expand its revenue base in 2026.

Piper Sandler views Robinhood as the best way to play secular growth in retail trading. The analysts call it the closest fintech platform to achieving “super app” status.

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