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News  ›  The Motley Fool

Why Robinhood Stock Lost 12% in December

The Motley Fool Logo The Motley Fool By Jennifer Saibil
Why Robinhood Stock Lost 12% in December

Robinhood Markets stock dropped 12% in December due to falling cryptocurrency prices, as the company is highly exposed to crypto markets. Despite the monthly decline, Robinhood had a strong 2025 with stock up 204%, driven by rapid expansion into new financial products, growing user base (27.9 million accounts), and strong profitability (Q3 net income up 271%). Cryptocurrency trading accounts for over a third of transaction revenue, making the company vulnerable to crypto volatility.

Insights
HOOD   neutral

Mixed signals: negative short-term (12% December decline due to crypto volatility) but positive fundamentals (strong 2025 performance +204%, rapid user growth, 271% net income increase in Q3, expanding product offerings). The stock decline appears to be a temporary reaction to cryptocurrency price movements rather than fundamental business deterioration.