Robinhood is feeling the chill of crypto winter

• Robinhood reported earnings on Tuesday, with the stock tumbling in Wednesday's session.
• The company's crypto transaction revenues declined amid a brutal bear market for bitcoin.
• JPMorgan analysts cut their price target for the stock, though they remain upbeat.

Crypto winter has settled over the market, and Robinhood is feeling the chill.

Robinhood's stock took a nosedive on Wednesday after reporting fourth-quarter revenue that fell short of Wall Street's expectations, with crypto a particularly weak spot.

Earnings beat consensus estimates, but revenue came in below projections. The company noted that a 38% decline in crypto was a drag on transaction revenues. All other revenue categories recorded growth, with prediction markets revenues quintupling.

Robinhood stock fell as much as 13% on Wednesday, extending its nearly 34% decline since the start of 2026.

Bitcoin was down over 3% on Wednesday, struggling to reverse its 23% year-to-date decline.

The token has failed to mount a comeback after last week's big risk-off rotation, even as other assets like tech stocks managed to shake it off and resume their climb

Despite tumbling crypto revenue last quarter, Robinhood said it's still bullish on the sector, while also touting a new frontier that's quickly emerging: prediction markets. CEO Vlad Tenev touted the rapidly growing space as a major opportunity, predicting a "supercycle" in the market.

JPM cuts price target after Q4 miss

JPMorgan analysts cut their price target for Robinhood to $113 from $130, while maintaining a Hold rating, on "moderating top-line estimates." Their target

"We think the 4Q25 results were emblematic of Robinhood's overall growth still being impressive but decelerating from previous results over the last 12-18 months," the analysts said.

They added that "Prediction markets could be an offsetting source of growth in transaction revenue if crypto downturn continues."

Elsewhere among Wall Street analysts, outlooks are still largely bullish for Robinhood despite the fourth-quarter miss. .

"While we continue to like HOOD's long-term positioning in the market, and continued market share gains are a validation of the company's potential, tonight's results underscore the volatility in results given how market-dependent much of HOOD's revenue still is, despite considerable progress on diversification in recent years," analysts at Truist wrote.

Direxion's senior vice president of product and strategy, Ryan Lee, noted that Robinhood is well-positioned when crypto prices climb again.

"All eyes across the market have been on crypto, and HOOD is not immune from this scrutiny. Though crypto transactions have pulled back meaningfully from highs and HOOD missed on revenue, the retail broker stands well-positioned to capture trading volumes when this crypto winter ends," he wrote.