Robinhood slides 12% after earnings miss, Coinbase falls 8%

Robinhood (HOOD) opened Wednesday down about 12% at $72, its steepest intraday drop since the earnings release, while Coinbase (COIN) slid 8% to $179.16 and Webull (BULL) fell 5% to $6.77, all moving in tandem after Robinhood reported a Q1 2026 earnings miss driven by a sharp decline in crypto transaction revenue【1】.

Earnings miss triggers sector sell‑off

Robinhood posted Q1 revenue of $1.07 billion, missing the $1.14 billion consensus, and adjusted EPS of $0.38, 10% below forecasts【1】. The headline shortfall came from crypto transaction revenue, which fell 47% year‑over‑year, reflecting a broader retail crypto slowdown that management had already flagged. Despite overall revenue growth of 15% YoY, the shift away from crypto hurt margins and prompted the company to raise its 2026 operating‑expense guidance to $2.7‑$2.825 billion, including a $100 million spend on a new “Trump Accounts” initiative【1】.

The sell‑off spilled over to peers with no direct exposure to Robinhood’s results. Webull’s stock slipped 5% to $6.77, and Coinbase, the largest U.S. listed pure‑play crypto exchange, dropped 8% to $179.16. Analysts note that Coinbase’s decline may be linked to the same market‑wide crypto weakness, as its institutional derivatives revenue surged last quarter, suggesting a possible rotation of retail crypto activity toward the exchange【1】. Bitcoin’s price also retreated to around $79,000, a near‑3% drop, adding pressure on crypto‑related equities【3】.

Market context and sentiment

Robinhood’s crypto revenue plunge contrasts with its platform growth: funded accounts rose 36% to 27.4 million and net deposits hit $17.7 billion, indicating continued user engagement despite the crypto dip【1】. Nevertheless, prediction‑market sentiment turned bearish, with Polymarket assigning a 98% probability of a further price decline for HOOD today【1】. Coinbase’s Q1 results, released later in the week, are expected to show a 26% YoY revenue decline to about $1.5 billion and EPS around $0.36, reinforcing the sector’s downside risk【2】.

What to watch

• Robinhood support: $70‑$68 range, where intraday buying pressure could emerge.
• Coinbase price: $175 resistance; a break could signal broader sector recovery.
• Crypto market: Bitcoin price above $80,000 would ease volume concerns for both firms.

Robinhood’s earnings miss underscores how sensitive crypto‑linked stocks remain to transaction volume swings, while the broader market watches whether Coinbase’s upcoming earnings can reverse the sector’s downward momentum. The open question is whether retail crypto activity will continue to shift toward established exchanges or remain fragmented across platforms.