Robinhood Stock Plunges 40%: Is Cathie Wood’s Buying Spree a Signal?

Key Insights

• Robinhood’s stock price has crashed by 40% from its highest level in 2025.
• Cathie Wood continued accumulating the stock this week.
• Technical analysis suggests that the stock has more downside ahead of earnings.

Robinhood stock price continued its freefall this year, reaching its lowest level since June last year. It has plunged by 40% from its all-time high, erasing billions of dollars as its market capitalization dropped from over $140 billion to the current $79 billion.

This article explores the top reasons for whether it is safe to buy HOOD stock ahead of its earnings, as Cathie Wood continues to buy the dip.

Cathie Wood is Buying the HOOD Stock

Cathie Wood’s Ark Invest believes that Robinhood is a bargain, which explains why it is buying the dip. The company bought HOOD shares worth over $32 million, continuing a buying spree that has been going on for years.

Data on its website shows that the Ark Innovation Fund (ARKK) holds Robinhood shares worth over $262 million. Similarly, the Ark Next Generation Internet ETF (ARKW) holds HOOD shares valued at $80 million, while the Ark Blockchain & Fintech Innovation ETF (ARKF) holds shares valued at over $39 million.

This accumulation is happening as Robinhood and other fintech companies continue tumbling. For example, PayPal’s stock price has crashed to $52, down from the all-time high of $300.

Similarly, Coinbase, which Cathie Wood also holds, has tumbled to $180, down 56% from its 2025 high. Other companies like Block, Bakkt, and Shift4 Payments have all plunged.

These stocks plunged because of the ongoing crypto market crash that has affected Bitcoin and most altcoins, including Solana, Ethereum, and Hedera. Robinhood is a major player in the crypto industry, with users being able to trade on its main product and through Bitstamp, a company it acquired last year.

Robinhood to Release Earnings Next Week

The next key catalyst for HOOD’s stock price will be its earnings, which are scheduled for February 10 this year. These results will provide more color on its business and its revenue growth.

Data compiled by Yahoo Finance shows that the average estimate is that its fourth-quarter revenue rose 32% to over $1.34 billion, while its earnings per share (EPS) rose to 63 cents.

If this estimate is accurate, then Robinhood’s annual revenue will be $4.52 billion, up by 53% from 2024

The strong revenue growth will be because of its Bitstamp acquisition and international expansion. The stock and options market also had substantial volume last year.

Robinhood has launched several initiatives to boost revenue growth over the past few months. For example, the company embraced tokenization and is now offering hundreds of tokenized stocks to clients in Europe. Its goal is to use this technology to offer services to clients from other countries.

The company has launched its prediction market, an industry analysts expect will continue to grow in the coming years. It is also working to grow its business internationally, including through acquisitions.

It acquired two Indonesian companies as it seeks to add millions of customers to its platform. The company is also working with Arbitrum to build its own layer-2 network.

Robinhood Stock Price Technical Analysis

The 12-hour chart shows that the HOOD stock price has crashed in the past few months,moving from a high of $154 in October to the current $90.

It has dropped below the 50% Fibonacci Retracement level, a sign that the downtrend is gaining momentum. The stock has also formed a death cross pattern, as the 50- and 200-period Weighted Moving Averages (WMA) crossed.

It has also moved below the key support level at $102, its lowest level on November 21. Also, the Average Directional Index (ADX) has continued rising and is now hovering at its highest level since October.

Therefore, the most likely HOOD stock price prediction is bearish, with the next key target being at $77.35, the 61.8% Fibonacci Retracement level. This target price is about 15% below the current level.

The post Robinhood Stock Plunges 40%: Is Cathie Wood’s Buying Spree a Signal? appeared first on The Market Periodical.