TLDR
- Robinhood stock dropped more than 8% on Thursday after reporting sharp declines in November trading volumes across multiple categories.
- Equity volumes fell 37% month-over-month, options dropped 28%, and crypto declined 12% on a per-day basis in November.
- Assets under custody decreased 5% to $325 billion, marking the first monthly decline since February.
- Net deposits remained strong at $7.1 billion, up 27% from October and the third-best month of 2024.
- The company announced plans to expand into Indonesia through acquisitions expected to close in the first half of 2026.
Robinhood Markets took a hit on Thursday as shares fell more than 8% following disappointing November trading metrics. The brokerage platform reported widespread declines in trading activity across its core business lines.
The numbers paint a clear picture of cooling retail engagement. Equity volumes dropped 37% from October to $201.5 billion. Options trading fell 28% month-over-month. Crypto volumes declined 12% on a per-day basis to $28.6 billion, down from October’s $32.5 billion.
The slowdown comes after an unusually strong October. Both equity and crypto markets weakened during November. This appears to have dampened the retail trading enthusiasm that characterized earlier months.
Robinhood’s total platform assets under custody fell 5% to $325 billion. This marks the first monthly decline since February. The drop reflects both the reduced trading activity and market conditions during the month.
The company also trimmed roughly 280,000 low-balance inactive accounts from its platform. This led to funded accounts slipping by approximately 130,000. However, this appears to be routine cleanup rather than active customer loss.
Strong Deposit Growth Despite Volume Decline
Not everything looked grim in the November report. Net deposits hit $7.1 billion, up nearly 27% from October. This marked the third-best month of 2024 for deposits.
The strong deposit numbers suggest customers are still adding money to their accounts. They’re just trading less frequently. This could indicate a wait-and-see approach rather than outright disengagement.
Prediction markets emerged as a bright spot. Robinhood traded 3 billion event contracts in November. This represented a 20% increase from October and a 500% jump year-over-year.
International Expansion Plans
Robinhood announced its entry into Indonesia this week. The company signed agreements to acquire brokerage PT Buana Capital Sekuritas and licensed crypto trader PT Pedagang Kripto.
The Indonesian expansion represents a push into new markets. The deals are expected to close in the first half of 2026. This move broadens Robinhood’s international footprint beyond its U.S. base.
Crypto volumes at Bitstamp, which Robinhood agreed to acquire earlier this year, also fell 11% in November. This shows the crypto slowdown wasn’t unique to Robinhood’s platform.
Year-over-year comparisons tell a mixed story. Equity volumes were up 37% compared to November 2023. However, crypto volumes fell 19% from year-ago levels when Trump’s election victory sparked a crypto surge.
The timing of the November slowdown raises questions about retail momentum heading into year-end. For a company that relies heavily on transaction-based revenue, volume declines directly impact earnings potential.
Shares remain up 216% year-to-date despite Thursday’s drop. Cantor analyst Brett Knoblauch pointed to Robinhood’s YES/NO event on December 16 as the next key catalyst for the stock.
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