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Robinhood's February Slump Tied to Crypto Slowdown as Cramer Backs Long-Term Potential

Quarterly results highlighted a steep drop in crypto trading revenue that keeps performance tethered to market swings.

Overview

  • Shares fell 24% in February, placing Robinhood among the S&P 500’s worst performers, according to S&P Global Market Intelligence and Yahoo Finance.
  • After its mid-February report, the stock sank about 17% over two sessions and has recovered only part of those losses.
  • In Q4 2025, total revenue rose 27% year over year as cryptocurrency transaction revenue declined 38%, signaling weaker activity in a key line.
  • Jim Cramer said he is a long-term believer, arguing Robinhood “owns the future” with younger users, while warning the business is currently driven by crypto and options.
  • He criticized the company’s new prediction markets push and pointed to a roughly $3 rebound he linked to improving crypto sentiment; Robinhood Gold memberships rose 58% to 4.2 million.