Robinhood Tumbles on Crypto Winter Woes. Here's Why You Should Buy.[Featured](https://moneymorning.com/category/featured/) # Robinhood Tumbles on Crypto Winter Woes. Here's Why You Should Buy.  by Rich Duprey  February 13, 2026  Share it: **Robinhood Markets** ( [HOOD](https://moneymorning.com/stocks/hood/)) shares plunged 9% yesterday following the release of its mixed fourth-quarter results. While the company reported revenue of $1.2 billion – falling short of analysts' estimates by 5% primarily due to diminished cryptocurrency trading volumes amid the ongoing crypto winter – earnings per share came in at $0.45, surpassing expectations by a penny. This shortfall reflects broader market caution as digital asset prices cooled significantly. From its October peak of around $154 per share, HOOD has shed nearly half its value, now trading below $78. Yet, this dip could represent a golden entry point for investors. With robust earnings, strategic expansions, and long-term growth tailwinds, HOOD appears undervalued and poised for a rebound as markets stabilize. ## Navigating the Crypto Downturn HOOD's Q4 results underscore the challenges posed by the crypto market's sharp retreat. **Bitcoin** ( [BTC](https://moneymorning.com/stocks/btc/)), the bellwether cryptocurrency, has plummeted over 40% from its all-time high in October, dragging down trading activity across the platform. Other major cryptos like **Ethereum** ( [ETH](https://moneymorning.com/stocks/eth/)) and **Solana** ( [SOL](https://moneymorning.com/stocks/ol/)) followed suit, with volatility scaring off retail investors who form the core of Robinhood's user base. This led to a 25% year-over-year drop in crypto-related revenue, as traders pulled back on speculative bets amid fears of further declines. Some analysts warn that Bitcoin [could still test $30,000](https://moneymorning.com/2026/02/02/is-bitcoin-about-to-get-hit-by-a-polar-vortex/) – a level last seen in late-2023 – if macroeconomic pressures like elevated interest rates or macroeconomic pressures continue. However, history shows crypto cycles are, well, cyclical: prices inevitably recover, even if not with the same explosive growth seen in last year's meteoric rise. For HOOD, this temporary lull masks underlying strength. The company added 2 million net funded accounts in Q4, bringing its total to over 25 million users, demonstrating stickiness beyond crypto hype.  ## Expanding Beyond Crypto To diversify away from crypto volatility, Robinhood has aggressively [broadened its product suite](https://moneymorning.com/2026/02/03/cathie-wood-just-dropped-33-5-million-on-robinhood-time-to-buy/). A standout move is its foray into prediction markets, launched in early 2025, where users wager on real-world events like elections, sports outcomes, and economic indicators. The platform reported over 12 billion contracts traded throughout 2025, a staggering volume that highlights rapid adoption. Management described this segment as entering a "supercycle," fueled by regulatory clarity and growing interest in decentralized betting. This expansion not only boosts transaction-based fees but also enhances user engagement, with average daily trades up 15% quarter-over-quarter. Additionally, HOOD rolled out enhanced retirement accounts and international trading options, positioning it as a full-service fintech hub. These initiatives mitigate crypto dependency, with non-crypto revenue streams now accounting for 60% of total income, up from 45% a year ago. As crypto rebounds, these layers could amplify growth, turning HOOD into a more robust, multi-asset brokerage. ## Bottom Line At its current depressed valuation, HOOD trades at a forward price-to-earnings ratio of 26, above many of its peers in the fintech space, but it has better growth prospects than they do. Analysts project over 21% annual earnings growth for the next five years, driven by user expansion and product innovation. This yields a price-to-earnings-growth (PEG) ratio of 1.2 – less than twice the growth rate – signaling undervaluation. Savvy investors should view this crypto-induced sell-off as a buying opportunity, betting on Robinhood's adaptability and the inevitable crypto thaw. **Beat the market, without relying on brokers or biased institutions.** Email(Required) Name This field is for validation purposes and should be left unchanged. 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