A Major Investor Sees Opportunity in Robinhood’s Recent Decline

Following a sharp sell-off on Thursday, trading in Robinhood shares appears to have stabilized. The initial volatility was triggered by the release of the company's November 2025 operational metrics, which showed a notable slowdown from the previous month's strong performance. Equity trading volume plummeted 37%, options activity declined by 28%, and even the cryptocurrency segment saw a 12% contraction. Further concern was sparked by a drop in the total number of funded accounts, though management attributed this to a deliberate cleanup of approximately 280,000 small, inactive accounts.

This period of weakness presented a buying opportunity for a prominent market figure. Cathie Wood's investment firm, ARK Invest, moved decisively, acquiring over 124,000 shares worth roughly $16.9 million on Thursday. This substantial, counter-cyclical purchase suggests certain institutional players view the market's severe reaction to monthly fluctuations as an overreaction. At the time of writing, the stock is finding support, trading at €106.30, a marginal gain of 0.28%.

Fundamentals and Regulatory Headwinds

Beneath the disappointing trading figures, several positive fundamental indicators persist. Net deposits for November actually increased by 27% to $7.1 billion. This signals that customers continue to entrust significant capital to the platform, even if their trading activity has temporarily slowed. Furthermore, Robinhood is expanding its geographic footprint through an acquisition in Indonesia, marking its entry into the Southeast Asian market.

Should investors sell immediately? Or is it worth buying Robinhood?

However, this outlook is clouded by fresh regulatory challenges in its home market. Authorities in Connecticut are taking action against the company's "Prediction Markets," creating uncertainty in one of Robinhood's key growth areas. In response to this mix of operational data and regulatory pressure, the analyst firm Cantor Fitzgerald has slightly adjusted its outlook, lowering its price target from $155 to $152.

All eyes are now turning to December 16th. Robinhood has scheduled a special event focused on its prediction markets. This presentation is likely to be pivotal in demonstrating whether the company can chart a clear path to monetizing this segment despite increasing governmental scrutiny.