Robinhood stock has been the worst performer in the S&P 500 index. What's going on with the company?

Shares of Robinhood Markets, the operator of a popular platform for trading on the stock and cryptocurrency markets, plunged nearly 10% on February 2, posting the worst performance in the S&P 500. The company's securities are pressured by the bitcoin sell-off, as well as the end of the American soccer season, significant for the prediction market, where Robinhood is building a presence. At the same time, Piper Sandler analysts see drivers in the long term: changes in the U.S. legislation in the field of cryptocurrencies and the upcoming World Cup.

Robinhood Markets on Monday showed the worst performance among the members of the S&P 500 index, Barron's calculated. The company's shares fell in trading by 9.6% to $89.9.

They have lost more than 20% of their value since the beginning of 2026. Probably, sellers are fixing their profits after the quotations grew by 200% last year, Barron's explains.

On Monday, Robinhood's shares were pressured by the bitcoin sell-off, which caused a collapse in the quotes of companies related to the cryptocurrency, the publication writes. The bitcoin price fell below the $80,000 mark for the first time since April and almost reached the minimum for the entire second presidential term of Donald Trump. The fall occurred amid increased geopolitical uncertainty and continued difficulties with the promotion of legislation on cryptocurrencies in Congress, specifies CNBC. Over the past 24 hours, bitcoin, however, recovered slightly, rising by 1%.

Robinhood offers clients trading in more than 50 types of digital assets, which generates a significant portion of the company's revenue, CNBC notes . Therefore, falling prices and lower trading volumes have a direct impact on the business. Historically, Robinhood's stock performance has correlated closely with the value of bitcoin, Barron's writes.

Another reason for the weakening is the end of the season in American soccer, according to analysts at Piper Sandler, whose note was quoted by the publication. Robinhood's predictive markets platform, which allows betting on the outcome of various events, including sports matches, has become, according to the company, the fastest-growing area in its history in terms of revenue.

Piper Sandler did not change its long-term outlook on shares of Robinhood, reiterating an Overweight rating equivalent to a buy recommendation and a target price of $155, suggesting a 72% upside potential relative to the last close.

The bank's analysts believe that the pending passage of the Clarity Act bill by the U.S. Senate, which will establish clear rules for the industry, will allow Robinhood to expand its cryptocurrency offering on its platform. And the start of the Winter Olympics and the North American Basketball Championship will help partially offset the end of the NFL season, writes Piper Sandler. In the longer term, the prediction market will be supported by the World Cup starting June 11 and the midterm elections for the Senate and House of Representatives on November 3, the investment bank's team said.

"On the long horizon, we continue to believe that Robinhood is the best way to play the structural growth of retail trading and the closest fintech platform we've seen to 'super app' status," the note reads.

"Bullish" view of the company is shared by the majority on Wall Street: 22 analysts out of 28 advise to buy its shares, MarketWatch shows . And three months ago there were only 19 such recommendations. One analyst suggests selling Robinhood securities. The average target price is $150.9, which is 67.8% higher than the current price.

This article was AI-translated and verified by a human editor