Shares of Robinhood (NASDAQ:HOOD | HOOD Price Prediction) are down about 12% in early trading Wednesday after the brokerage delivered a disappointing Q1 2026 earnings report. The stock is changing hands near $72 after closing Tuesday at $82.07.
The selloff stands out as Robinhood’s peers are following to the downside. Webull (NASDAQ:BULL) stock is down 5% to $6.77, and Coinbase (NASDAQ:COIN) shares are down 8% to $179.16.
This could mainly be a single-name event tied to Robinhood’s quarterly setup, with BULL and COIN shares suffering collateral damage.
Earnings Miss Sparks the Selloff
Robinhood reported Q1 2026 revenue of $1.07 billion, missing the $1.14 billion consensus estimate. Adjusted earnings per share (EPS) came in at $0.38, missing forecasts by 10%.
The biggest culprit was crypto. Crypto transaction revenue dropped 47% year over year (YoY), echoing the soft retail crypto trend management had already flagged. Robinhood’s overall revenue still grew 15% YoY, but the mix shift hurt.
Robinhood’s management also raised 2026 adjusted operating expense guidance to $2.7 billion to $2.825 billion, signaling margin pressure ahead. That includes an additional $100 million investment in the Trump Accounts initiative.
The intraday tape was brutal. The first 5-minute HOOD stock candle after the earnings report saw 1,611,520 shares change hands as institutions hit the exits.
Webull and Coinbase Fall in Tandem
Webull doesn’t report today and has no exposure to Robinhood’s specific catalysts. Still, BULL stock headed south in early trading on Wednesday.
Coinbase, the largest U.S. listed pure-play cryptocurrency exchange, is also undergoing a selloff. COIN shares are apparently taking a hit, possibly over a dislocation tied to Robinhood’s print.
The 47% drop in Robinhood’s crypto revenue raises a nuanced question. Is retail crypto activity contracting overall, or quietly rotating toward Coinbase? Coinbase’s all-time high institutional derivatives revenue last quarter suggests the latter is at least partially in play.
The Bull Case Analysts Are Still Defending
Despite the miss, analysts remain constructive. HOOD stock price targets range from $110 to $170, with Bernstein maintaining an Outperform rating and a $130 target citing prediction markets and banking traction. You can read more on Robinhood’s push into prediction markets for context.
Robinhood ended Q1 with 27.4 million funded accounts and 4.3 million Gold subscribers, up 36%. Net deposits hit $17.7 billion, suggesting the customer base is still engaged and depositing.
Moreover, Robinhood is pushing harder into banking, wealth management, and prediction markets. Those bets won’t show up in this quarter’s numbers, but they shape the longer-term thesis Bernstein and others are leaning on.
What to Watch Next
Robinhood stock is still up 68% over the past year. Year to date (YTD), HOOD is now down 27%, so today’s slide deepens an already rough 2026.
The prediction markets are leaning bearish. Polymarket assigns a 98% probability that HOOD stock closes lower today, and the May market clusters near $70.
Keep an eye on Robinhood stock through the session for color on prediction markets traction and HOOD selling pressure. Also watch for whether Webull and Coinbase pick up any share Robinhood loses in the months ahead.
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