NEW YORK, June 23, 2026, 13:07 (EDT)
Robinhood Markets shares trimmed earlier losses Tuesday after dropping at the open. The online broker priced a $2 billion sale of convertible senior notes, a form of debt that can be exchanged for stock on certain terms. The stock stayed down.
The stock dropped 0.6% to $105.05. It hit a low of $98.25 earlier. Interactive Brokers was off 0.7%. Charles Schwab gained 0.9%. Robinhood’s swing looked linked to its funding, with less spillover from other brokerages.
The issue for investors is clear: Is Robinhood riding a run in trading and a high share price to pull in cheap capital, or does this risk more dilution just as the stock hits a key spot?
Robinhood said its 0.00% notes are due Oct. 1, 2029. The initial conversion price is around $174.42 a share, 65% higher than Monday’s last sale. Robinhood expects net proceeds of about $1.97 billion. Of that, it plans to use roughly $290 million to buy back stock and $112 million for capped calls, which are options to limit dilution. The rest of the money is for general corporate use, which may include growth spending, deals or capital projects.
Tech stocks took a hit Tuesday, dragging the Nasdaq and S&P 500 to their lowest levels in over a week. Investors pulled back from technology as bets on a more hawkish Federal Reserve grew and concerns swirled about the price of AI spending.
Robinhood put out new operating numbers for bulls to chew on. From June 1 to June 18, equity notional trading volume came in around $269 billion, according to the company. Options contracts traded were about 217 million. Crypto notional volume hit about $12 billion. Event contracts, which are trades on prediction markets, reached about 3.1 billion. Robinhood said it will give a fuller volume update for June on Friday.
Robinhood got its price target boosted to $130 from $110 by Cantor Fitzgerald’s Ramsey El-Assal, who kept his Buy call on the stock. El-Assal called Robinhood one of the “most compelling long-term opportunities” he covers. He cited strong trading in June, growth from prediction markets, and an improving IPO pipeline, according to TipRanks. TipRanks
Truist Securities kept its Buy on the stock and held the $100 target after the fresh volume numbers and debt news. The note pointed out that June run-rate volumes could mean double-digit upside for Q2 transaction revenue. Truist also flagged pressure on the shares, driven by concerns over why the company issued the debt and chatter about possible convertible-note arbitrage.
Robinhood’s new financing follows its move last week to cut about 10% of its full-time employees, or about 290 jobs. CEO Vlad Tenev said the business “has never been stronger.” Devin Ryan, analyst at Citizens JMP Securities, said tech is allowing for a “flatter, more productive structure.” Reuters
The trade also has downside. If trading volumes drop, crypto stays weak or the stock falls, Robinhood is still stuck with zero-coupon debt and a buyback that could lose steam. The company flagged in its filing that market rates, share price swings and risks tied to the offering might make actual results differ from plans.
Investors are watching two things right now: if the notes close on June 25 as planned, and if Friday’s June update from Robinhood shows customer activity is solid, pushing aside any concerns about more shares coming to market.
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