Crypto Stocks Under Pressure – HOOD Slumps After Earnings Miss, While COIN And CRCL Drift Lower

Robinhood shares fell nearly 8% in after-hours trading following a fourth-quarter earnings and revenue miss.

• Coinbase and Circle shares also declined in overnight trading.
• Citi reduced its price target on Coinbase by nearly $100 but maintained a ‘Buy’ rating.
• MSTR’s stock already trended lower after hours, extending losses from the regular session, after executive chairman Michael Saylor said that the company plans on continuing to buy Bitcoin every quarter.

Robinhood (HOOD) was the worst performing crypto-linked equity in overnight trade on Tuesday after the company reported earnings and revenue that did not meet Wall Street’s expectations. 

HOOD’s stock was down as much as 7.98% after hours, extending its 1.11% loss during regular trade after the company reported earnings of $0.66 per share, missing analyst expectations of $0.68 for the fourth quarter (Q4), as per Koyfin data. Revenue came in at $1.28 billion, also missing the consensus estimate of $1.34 billion. 

COIN, CRCL Stocks Also Drift Lower After Hours

Other crypto stocks to take a hit after hours include Coinbase Global (COIN) and Circle Internet Group (CRCL). COIN’s stock took a hit of 1.18% in overnight trade, following a dip of 2.83% in the regular session after Citi cut its price target to $400, down from $505 but kept a ‘Buy’ rating on the stock. On Stocktwits, retail sentiment around Coinbase fell to ‘bullish’ from ‘extremely bullish’ territory over the past day with chatter at ‘extremely high’ levels.

CRCL’s stock was down 1% in overnight trade after edging 0.5% lower in the regular session. Retail sentiment around the USDC stablecoin issuer rose to ‘bullish’ from ‘neutral’ territory over the past day with chatter steady at ‘normal’ levels. The firm’s venture arm has reportedly taken a stake in edgeX, investing an undisclosed amount before the platform’s anticipated token debut and integration of native USDC and Circle’s Cross-Chain Transfer Protocol (CCTP) on the EDGE Chain.

What Is Retail Saying About HOOD’s Stock?

Despite the dip in stock price, retail sentiment around HOOD on Stocktwits climbed higher with ‘extremely bullish’ territory over the past day, with chatter at ‘extremely high’ levels. It was among the top trending tickers on the platform at the time of writing with platform data showing a 257% increase in message volume over the past 24 hours.

Despite missing earnings and revenue estimates, some users argued Robinhood’s results were not overly concerning, citing expectations that the new Trump- Accounts initiative could drive future revenue.

Robinhood Is About More That Just Cryptocurrency Trading

Robinhood’s newly appointed chief technology officer, Shiv Verma, said that cryptocurrency trading was not the only source of revenue for the company – it now has 11 separate business lines generating more than $100 million in annual recurring revenue. “It's important to remember, while we did close to $1 billion of crypto revenue last year, it was only 18% of our overall revenue. So we love what we're seeing, but more than 80% still comes from outside of crypto,” he said on the earnings call. 

Crypto Stocks That Saw An Uptick After-Hours

Shares of American Bitcoin (ABTC), Block (XYZ), and Bitmine Immersion Technologies (BMNR) rose more than 1% each in overnight trade. Crypto miners Riot Platforms (RIOT) and MARA Holdings (MARA) also edged higher after hours. Michael Saylor-led Strategy (MSTR) was up 0.39% in overnight trade after dropping nearly 4% in the regular session.

In an interview with CNBC, Saylor said Strategy plans to keep buying Bitcoin (BTC) every quarter and projected MSTR’s returns would be two to three times stronger than the S&P 500 in the long term.

The overall cryptocurrency market was down 2.6% in the last 24 hours to around $2.36 trillion. Bitcoin’s price fell 2.8% to around $67,700.

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