Robinhood Markets (NASDAQ:HOOD) has faced a turbulent start to 2026, with shares down roughly 33% year-to-date after its latest earnings report reset investor expectations. Despite the slide, Robinhood continues to expand products and assets, raising the question: is this a buying opportunity or a warning sign for investors? This Robinhood stock February 2026 analysis explores the numbers, strategic moves, and analyst sentiment shaping the stock’s outlook.

The Numbers Behind the Decline

Robinhood, based in Menlo Park, provides commission-free trading, banking tools, retirement accounts, and credit cards to retail investors. Its market capitalization is roughly $77 billion, and its share price stands at $76.58 as of early February, down 33% YTD but still up 20% over the past 52 weeks.

The stock’s valuation remains high, with a PEG ratio of 1.34x and a price-to-sales multiple of 16.02x. Compared with sector medians of around 1.0x PEG and 2.94x sales, Robinhood continues to command a growth premium despite the recent selloff.

Q4 2025 earnings showed EPS of $0.66, beating the $0.63 consensus, marking GAAP profitability. Revenue rose to approximately $1.28 billion, a mid-20s percentage increase YoY. Platform assets climbed 68% to $324 billion, with retirement assets more than doubling to $26.5 billion. The margin book grew 113% YoY to $16.8 billion, reflecting record equities and options trading activity.

Expanding Into Prediction Markets

Robinhood is diversifying beyond traditional trading with its acquisition of 90% of MIAX’s MIAXdx derivatives exchange, giving the company control over listing and clearing event contracts, futures, and options. Prediction markets, where Robinhood handles roughly 30%-35% of U.S. retail volume, are growing rapidly, with quarterly volumes doubling each period.

This expansion aims to increase trading activity, add fee streams, and deepen customer engagement, making it a key growth lever alongside equities, options, and crypto offerings.

Leadership Changes

The company is also undergoing leadership transitions. Long-time CFO Jason Warnick is stepping down in 2026 but remains an advisor through September. Shiv Verma, previously senior VP of finance and strategy, took over as CFO on February 6, ensuring continuity in financial strategy and capital planning.

Institutional Support and Analyst Sentiment

Big institutional investors continue to show confidence. Bridgewater Associates purchased over 800,000 shares in the third quarter, betting that Robinhood’s mix of trading, prediction markets, and expanding assets will sustain earnings growth.

Analysts are cautiously optimistic. The next earnings checkpoint is scheduled for April 29, 2026. Estimates for the March quarter project EPS of $0.60, up 62% YoY. Full-year EPS guidance for December 2026 stands at $2.48, a 21% increase over last year. Wolfe Research recently upgraded HOOD to “Outperform” from “Peer Perform,” with a $125 price target, framing the selloff as a buying opportunity rather than a structural problem.

The overall consensus from 22 analysts remains a “Moderate Buy,” with an average price target of $136.60, indicating roughly 79% upside potential from current levels.

Is Robinhood Stock a Buy?

The current selloff appears more like a market recalibration than a sign of lasting weakness. Earnings are still growing, client assets continue to expand, and the new prediction market segment adds a fresh revenue leg. While volatility may persist in the short term due to valuation concerns and revenue misses, long-term prospects remain promising.

Investors who can tolerate near-term fluctuations may find Robinhood stock February 2026 an attractive dip-buying opportunity. The combination of expanding trading volumes, growing platform assets, and diversification into prediction markets sets the stage for a potential grind higher over the next 12 to 18 months.

Conclusion

Robinhood stock is currently navigating a correction following a strong 2025 and early 2026 revenue developments. With profitability confirmed, strategic growth initiatives underway, and analyst optimism intact, patient investors may benefit from accumulating shares at current levels. The risk-reward still leans toward a gradual upward trajectory rather than a steep breakdown, making this a pivotal moment for traders and long-term holders alike.

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