Big Investors Think Robinhood’s Crypto Drop Is Just a Rough Patch

Some big money players see Robinhood’s recent fall as nothing more than a temporary glitch. The trading app, which slipped almost 12 % after missing earnings and revenue forecasts on April 28, has attracted fresh buying from big names. The drop was largely blamed on weaker crypto trading, but analysts and institutional investors point to other areas that could keep the company moving forward. Ark Invest, led by Cathie Wood, snapped up nearly $40 million of shares the day after the miss. The purchase shows confidence that Robinhood’s long‑term prospects are solid, especially since crypto volatility can be short‑lived. Ark keeps Robinhood in its top holdings, making it a key part of the firm’s overall portfolio. Wall Street analysts are also leaning bullish. Cantor Fitzgerald reiterated an “Overweight” stance with a $110 target, citing rising equity and options volumes that could offset crypto softness. The firm notes that the earnings shortfall reflects market conditions rather than a core business problem.Compass Point shares a similar view, keeping a “Buy” rating but trimming its target to $107. It argues that the market’s reaction seems backward, as better second‑quarter expectations loom. However, not everyone is optimistic. Keefe, Bruyette & Woods lowered its target to $65 after warning that falling transaction fees could persist. Their analysts highlighted a drop in capture rates across crypto and options, leading to reduced earnings forecasts through 2028. On the flip side, Bernstein remains upbeat with an “Outperform” rating and a $130 target. It points to steady crypto prices in April and strong equity and options activity as signs of recovery. Beyond trading, investors are watching new revenue ideas. Prediction markets, especially the upcoming Rothera platform, could become a major income source for Robinhood. If trading activity rebounds, the company might return to growth sooner than expected; if not, transaction revenue pressure could last into the second half of the year. The stock is up about 3 % today, but it has fallen roughly 37 % this year. Its crypto peer Coinbase gained a similar amount today, down about 19 % year‑to‑date.