Robinhood stock plunges 14% in worst week since August as crypto surge fades

Robinhood's stock price dropped by 14% in its worst week since August, partially due to a decrease in the cryptocurrency trading surge that followed the US Presidential election. The company's stock had risen by 162% between November 5th and the end of last week, boosted by strong fourth-quarter earnings where revenue more than doubled. However, analysts suggest that this growth was already factored into the stock's price. One analyst downgraded the stock from a buy rating to a hold-equivalent, suggesting a target share price of $60 to $70. Robinhood's crypto revenue grew by over 700% in the fourth quarter, coinciding with Bitcoin trading above $100,000. Concerns exist that this level of growth may not continue, contributing to the stock's decline. Despite this, most analysts still maintain a buy rating on the stock, with an average price target of $70.76. However, declining cryptocurrency activity this quarter could lead to further drops in Robinhood's share price. Robinhood also plans to launch cryptocurrency trading in Singapore through its subsidiary Bitstamp by late 2025, leveraging Bitstamp's existing licenses in the country. Robinhood acquired Bitstamp for $200 million to expand its reach with institutional crypto investors. Bitstamp has received preliminary approval from Singaporean regulators, and the acquisition is expected to finalize this year.