New York, Jan 6, 2026, 11:29 EST — Regular session
- Robinhood shares fall even as the broader market edges higher
- A proposed $2 million settlement in an order-flow case was posted Monday
- Traders are watching Friday’s U.S. jobs report and Robinhood’s Feb. 10 results
Robinhood Markets, Inc. shares were down 1.7% at $121.20 in late morning trading on Tuesday, lagging a modest rise in U.S. equities as crypto-linked names cooled with bitcoin off its session highs. Coinbase fell 0.9%, while Charles Schwab rose 0.7%.
The moves matter because Robinhood’s revenue is tightly tied to customer trading activity, which often tracks swings in risk appetite — from crypto to options. With big macro data due later this week, some investors were trimming exposure to high-beta brokerage names after a strong start to the year.
A legal notice posted on Monday said a proposed $2 million settlement had been reached in In re Robinhood Order Flow Litigation, covering certain U.S. customers who traded during 2016–2018 and met specific execution-price criteria. A court hearing to consider final approval is set for May 5, the notice said.
The suit centers on “payment for order flow,” a common brokerage practice where trading firms pay brokers to route customer orders. The notice referenced executions compared with the “National Best Bid and Offer,” the top displayed buy and sell prices across U.S. exchanges at a given moment.
More broadly, Wall Street was modestly higher, led by healthcare and technology, as investors looked ahead to Friday’s U.S. nonfarm payrolls report for clues on the Federal Reserve’s rate path.
Robinhood’s next major company catalyst is its fourth-quarter and full-year 2025 report on Feb. 10, after the close, with a video call featuring CEO Vlad Tenev and incoming CFO Shiv Verma, the company has said.
But risks remain. Legal and regulatory scrutiny of order routing and trading practices can flare up without warning, and softer crypto prices can cool retail activity — a key driver for Robinhood’s transaction-heavy model.
For now, traders are watching whether the stock holds near the $120 level and how risk assets react to Friday’s jobs data (Jan. 9), with Robinhood’s Feb. 10 earnings report the next company-specific test.
