Prediction: Robinhood Markets (HOOD) Stock Is Going to Plunge in 2026

Here I am, presenting you with a bold prediction: shares of Robinhood Markets (NASDAQ: HOOD) volition autumn sharply successful 2026. It mightiness marque you halt and think, but don't fto it pb you to instrumentality immoderate enactment -- due to the fact that I could beryllium wrong.

Every capitalist volition marque atrocious calls connected occasion, aft all. Even Warren Buffett has blundered, sometimes buying thing helium possibly shouldn't person bought, oregon selling erstwhile possibly helium shouldn't have.

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But let's instrumentality a look astatine Robinhood Markets present -- due to the fact that possibly it will drop successful 2026.

Robinhood Markets is simply a "fintech" (financial technology) institution that was aboriginal to connection escaped banal trading, offering investors the quality to bargain fractions of shares and not requiring minimum sums to unfastened accounts. It's not surprising, then, that it was palmy successful attracting younger and newer investors.

It has been a large grower:

Source: Data from Morningstar.com arsenic of Jan. 27, 2026.

And it's inactive growing. Its 3rd 4th featured:

• Revenue up 100% twelvemonth implicit twelvemonth to $1.27 billion.

• Net income up 271% twelvemonth implicit twelvemonth to $556 million.

• Net involvement gross up 66% twelvemonth implicit twelvemonth (thanks chiefly to interest-earning assets and activities specified arsenic borderline loans).

• Total operating expenses up 31% twelvemonth implicit twelvemonth (which is simply a large jump, but acold little than the leap successful revenue, making it not an issue).

• Average gross per idiosyncratic up 82% twelvemonth implicit twelvemonth (to $191).

Robinhood's show has been beauteous amazing, and the institution has achieved it successful portion by adding much services disposable to its customers -- including, recently, betting connected predictions.

The main crushed I'm taking a bearish stance connected the institution is its caller steep valuation. Its forward-looking price-to-earnings (P/E) ratio and its existent P/E ratio were some precocious astir 44, which is simply a spot lofty. And its caller price-to-sales ratio of 23 is mode supra its five-year mean of 7. (And adjacent 7 is simply a affluent price-to-sales figure.)

Go up and see buying the banal -- oregon steering wide for now. It mightiness leap by, say, 50% this year, oregon it mightiness driblet by, say, 50%. If you bash buy, you mightiness privation to bash truthful successful increments, successful lawsuit the banal drops successful the adjacent future. And bash truthful lone if you're readying to bent connected to those shares for a agelong clip -- successful lawsuit the banal does dip and needs clip to recover.