What Happened?
Shares of financial services company Robinhood (NASDAQ: HOOD) fell 9.1% in the morning session after the company reported weak operating data for November 2025, showing declines in funded customers and trading volumes.
The report revealed that trading volumes for equities dropped by 37% from the previous month, while options and crypto trading fell by 28% and 12%, respectively. The number of funded customers also decreased, partly due to the removal of about 280,000 low-balance accounts. Adding to the pressure, Connecticut's Department of Consumer Protection recently issued a cease-and-desist order to Robinhood for allegedly conducting unlicensed online gambling operations. In response to the developments, analysts at Bank of America Securities and Cantor Fitzgerald lowered their price forecasts on the stock.
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What Is The Market Telling Us
Robinhood’s shares are extremely volatile and have had 60 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 2.8% on the news that the company announced its entry into the Indonesian market as it agreed to acquire a local brokerage and a digital asset trader.
The U.S. retail brokerage entered into agreements to purchase PT Buana Capital Sekuritas and PT Pedagang Aset Kripto. This move marked Robinhood's entry into Southeast Asia's largest market, which has over 19 million capital market investors and 17 million crypto traders. The expansion was part of the company's broader international growth strategy throughout 2025. The deals were subject to approval by Indonesia's Financial Services Authority, with the company stating completion was expected in the first half of 2026. Investor reaction was optimistic, seeing the move as a significant step to tap into a fast-growing market for both stock and crypto trading.
Robinhood is up 215% since the beginning of the year, but at $124.09 per share, it is still trading 18.6% below its 52-week high of $152.46 from October 2025. Investors who bought $1,000 worth of Robinhood’s shares at the IPO in July 2021 would now be looking at an investment worth $3,564.
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