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    What Happened to HOOD? Skyrocketed in 2025, now collapsing in 2026

    I'm sort of at a lost what's happening to Robinhood lately. Can someone explain why it performed so well in 2025, but is now collapsing in 2026, down almost 50% in the last 3-4 months? I'm thinking about jumping ship, but unsure what's the best plan of action from here. I understand the recent events with the FED and Kevin Warsh, but it was also starting to go down, even the beginning of this year, before that even came up.

    What Happened to HOOD? Skyrocketed in 2025, now collapsing in 2026
    byu/LifeInAction instocks



    Posted by LifeInAction

    18 Comments

    1. mr_boomboom on

      High beta growth stock correlated with crypto. It can rise just as fast as it falls. A downtrend in the market and in crypto means less volume on its platform.

    2. EncrustedBarboach on

      I mean it was in its mania phase and you should’ve been scouting for tops, not holding for the correction lol

    4. SpotlessCheetah on

      Fake news about predictions and crypto sag is the headlines.. They’re still a good growth stock imo.

    5. alegrefranz on

      HOOD is just a high-beta proxy for retail risk appetite (and specifically Crypto). 2025 was a retail mania year and crypto flew, options volume exploded, and HOOD printed fees

    6. Realistic_Agent_9494 on

      No one knows what is going on with any stock anymore.

      Just hold on for the ride.

    9. CRAZYJOEDAVOLA90 on

      People doesn’t have money to gamble anymore. When the ”prediction markets” gets regulated oh boy HOOD will suffer.

    10. Different_Height_157 on

      Looks like an overall de-risk happening on the market overall. It’s why div stocks and funds are up while spec stocks are down. Buy now if you believe in the companies, they’ll rise when rotation happens back to spec

    12. The_Spoils on

      I never got the hype tbh. 

      RH has limited reach and has always been considered a “beginner’s” platform. It initially lured in retail investors who had very little expendable income by offering a simple UI and commission free trading which was unheard of at the time.  

      Eventually, all the big players got pissed RH was gaining market share so they started offering commission free trading as well. Problem for RH is that the big boys could offer DRIP and fractional shares which RH was very late to the game with. RH also charged a subscription fee for access to trade options (lol). This caused an exodus away from RH for more focused and longterm investors as well as the degens who wanted to gamble on options. 

      With a clearly established user base of low income retail investors, RH bafflingly played a big part in the GME fiasco when they deactivated the buy and sell button on GME stock during the peak of the meme stock craze which lost them a lot of trust with the retail demographic shifting to computershare or other platforms. 

      So, if RH has effectively burnt their bridge with experienced investors, retail investors, *and* degen gamblers all at once… who’s left using this shitty platform? Certainly not me. 

      I don’t know why it pumped in 2025 because I’ve avoided this company for years but I’m not at all surprised by it’s fall in 2026. There’s too many better options out there. 

    13. joeblow2118 on

      Crypto and diamond hands don’t correlate with the fundamentals.

      It was a helium ballon and the air is being let out. This is 2022 all over again.

      All these stocks gaining huge market caps they had no business gaining.

    16. PatrickBatemansEgo on

      So you know how Robinhood went up like 1,400% in a few years? This is the opposite of that. Don’t overthink it.

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