Robinhood Slides 5.7% as Nasdaq Selloff and Crypto Dip Hit Retail Brokers

Robinhood Markets fell 5.7% on Friday, closing near $100 as a broad Nasdaq selloff and a pullback in cryptocurrency prices weighed on retail-brokerage stocks. Rival Webull dropped roughly 6% in sympathy, with investors trimming exposure to names tied to trading activity and token prices.

The decline reflects familiar pressure points: crypto volatility has dented transaction-based revenue, with first-quarter crypto trading revenue down 47% year over year to $134 million, while regulatory uncertainty around payment for order flow and shifting Fed rate expectations cloud the outlook for net interest income.

Separately, Bloomberg reported Robinhood is seeking to sell at least $400 million of asset-backed securities tied to its consumer credit card bills, an offering that could reach $500 million. The company reports second-quarter earnings on July 29, with analysts expecting EPS of $0.41 on revenue of about $1.21 billion.