Why Robinhood Shares Are Dropping Before Key Earnings Report

Robinhood Markets, Inc. (NASDAQ:HOOD) shares fell Tuesday as a risk-off market weighed on growth stocks, with traders focused on how a crypto downturn could impact transaction-driven results ahead of earnings.

What To Watch Ahead Of Robinhood's Q1 Earnings

Robinhood is set to report first-quarter results after the close on Tuesday, with attention on how declining cryptocurrency prices may have affected trading activity and revenue.

Cryptocurrencies accounted for 28% of fourth-quarter transaction-based revenue, making the drop in Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) a key factor.

Investors are watching whether lower prices led to reduced user engagement and trading volumes.

Recent developments also shape sentiment. On April 22, Robinhood Ventures Fund I (NYSE:RVI) announced a $75 million investment in OpenAI, calling it one of its largest investments and signaling a push into frontier AI opportunities.

Robinhood Stock: Key Levels To Watch

Robinhood is trying to stabilize after a spring rebound, but it's still working back from more serious long-term damage inside its 52-week range ($45.56 low to $153.86 high).

The stock is trading 5.3% above its 20-day simple moving average (SMA) and 12.4% below its 100-day SMA, which leans short-term bullish but remains cautious on the intermediate trend.

The MACD is above its signal line with a positive histogram, indicating improving upside momentum compared to recent weeks. This suggests buyers have recently gained some control over price action.

However, the longer-term trend has not fully recovered despite this improvement.

• Key Resistance: $85.00 — a level where rallies have recently stalled.
• Key Support: $70.50 — an area where buyers have tended to show up.

Over the last 12 months, the stock has been up 67.71%, which shows the longer-term tape has still rewarded risk-taking despite big swings.

Robinhood Earnings Preview

The countdown is on: Robinhood is set to report earnings on April 28, 2026.

• EPS Estimate: 40 cents (Up from 37 cents)
• Revenue Estimate: $1.15 billion (Up from $927.00 million)
• Valuation: P/E of 42.2x (Indicates premium valuation)

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $114.28. Recent analyst moves include:

• JP Morgan: Neutral (Lowers Target to $92.00) (April 23)
• Keybanc: Overweight (Lowers Target to $110.00) (April 21)
• Cantor Fitzgerald: Overweight (Raises Target to $110.00) (April 21)

Robinhood Markets Benzinga Edge Rankings Explained

Below is the Benzinga Edge scorecard for Robinhood Markets, highlighting its strengths and weaknesses compared to the broader market:

• Momentum: Neutral (Score: 37.28) — The trend is mixed, with recent strength not yet fully decisive.
• Value: Weak (Score: 15.75) — The stock screens as expensive versus peers, consistent with a premium multiple.
• Growth: Strong (Score: 83.07) — The market is rewarding the company's growth profile versus most stocks.

The Verdict: Robinhood's Benzinga Edge signal shows a growth-heavy, premium setup with moderate momentum, suggesting a reliance on fundamentals over a strong trend breakout.

HOOD Stock Price Activity: Robinhood Markets shares were down 2.61% at $81.75 at the time of publication on Tuesday, according to Benzinga Pro data.

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