New York, February 2, 2026, 12:33 (EST) — Regular session
- Shares of Robinhood fall, dragged down alongside other crypto-linked stocks on a shaky market day
- Piper Sandler holds its $155 target but warns of short-term volume and seasonal headwinds
- Traders are eyeing Feb. 10 results for a sharper picture of retail activity
Shares of Robinhood Markets (HOOD) dropped 7.7%, hitting $91.87 by midday Monday. Bitcoin bounced back to roughly $78,939 after sliding to a low of $74,609. Coinbase shares edged down 2.2%, while Charles Schwab ticked up 0.5%.
The brokerage has turned into a volatile stand-in for retail risk appetite, with sharp crypto price swings often mirrored rapidly in its stock. As markets remain cautious, traders are eyeing whether the recent crypto sell-off will impact trading ahead of earnings.
The mood is jittery. “It’s risk off and de-leveraging—a flushing out of leverage in the system,” said Christopher Forbes, head of Asia and Middle East at CMC Markets. Reuters
Piper Sandler kept an Overweight rating and a $155 price target on Robinhood, citing three short-term headwinds: weaker crypto volumes and prices, the close of football season, and rising skepticism about the staying power of the recent retail trading surge. The firm also highlighted Robinhood’s beta of 2.45—a metric showing how volatile the stock is compared to the broader market—as a reason why its price swings might seem overstated.
Robinhood’s expanding foray into prediction markets introduces a new element to watch. Known as event contracts, these yes/no bets settle depending on real-world results. Barron’s reports football has fueled much of the action, forcing investors to factor in seasonal swings.
Cboe Global Markets is reportedly looking to bring back retail-focused binary options, according to the Wall Street Journal. These contracts pay out either nothing or a set amount, making them all-or-nothing bets.
Crypto’s stumble happened amid a sharp sell-off in precious metals, a popular hedge against dollar “debasement.” “It was fuel on the fire,” noted Brian Jacobsen, chief economic strategist at Annex Wealth Management, following President Donald Trump’s selection of Kevin Warsh as his pick for the next Federal Reserve chair. Reuters
Robinhood investors are watching closely to see if Bitcoin steadies itself or remains a drag that spills over into other risk assets. The stock tends to amplify such volatility.
The next clear update arrives with earnings, when the company details transaction revenue and customer activity for its key products. Investors will watch closely for signs of crypto engagement and whether momentum in event contracts sustains as the sports calendar slows down.
Still, a bounce in Bitcoin might fall short if retail investors pull back across the board or regulators intensify scrutiny on event contracts. In that case, the stock would rely more on sentiment than on fundamentals.
Robinhood plans to release its fourth-quarter and full-year earnings on Feb. 10, after markets close. The company will also host a video call at 5 p.m. ET featuring Chairman and CEO Vlad Tenev alongside incoming CFO Shiv Verma.
