Shares of Robinhood sank 6.9% to $89.09 on Tuesday, extending a punishing week that has erased 16% since July 21, as a crypto selloff collided with pre-earnings jitters and fresh disclosures showing big hedge funds had built sizable new positions.

  • Bitcoin's Slide Hits Robinhood Where It Hurts Most

Bitcoin opened at $63,707, down 2.5% from Monday, while Ethereum fell 3.2% to $1,891.

A broader sell-off in AI-linked stocks spilled into crypto, with Bitcoin falling toward $63,000. That matters because Robinhood's Q1 crypto revenue collapsed 47% to $134 million, and weaker take rates in crypto trading drove its last earnings miss. With a two-day Fed meeting starting today and a 35.8% chance of a rate hike priced in , crypto-dependent revenue faces another tough quarter — right as Robinhood reports tomorrow evening.

  • Hedge Funds Bought Big, But the Stock Keeps Falling Recent filings show Hound Partners took a new 1.06-million-share stake worth roughly $73 million in Q1, making Robinhood its fifth-largest position at 9.2% of portfolio.

Multicoin Capital initiated a $47 million stake and Weiss Asset Management added $20 million. Normally, institutional buying signals confidence. But 13F snapshots are backward-looking — a manager who held a stock on March 31 may have sold by April 15. The disclosures can trigger short-term volatility as traders recalibrate rather than follow the so-called "smart money."

  • Five Straight Post-Earnings Selloffs Loom Over Tomorrow's Report

Shares have fallen after each of the last five earnings reports, averaging roughly 8% declines, with one-day drops reading -5%, -3%, -11%, -9%, and -13%.

Consensus calls for about $1.27 billion in Q2 revenue — 28% higher year over year — and earnings near $0.41 per share.

Options are pricing a post-earnings swing of roughly 12.6%, well above the recent four-quarter average of about 9%. Even a clean beat may not stop the bleeding if forward guidance disappoints.

  • A Premium Valuation With Shrinking Room for Error

Robinhood trades at a price-to-earnings ratio of 55 and a price-to-sales ratio of 22 — lofty for a company whose full-year 2026 earnings are forecast to drop 11.7% to $1.81 per share.

Bernstein just raised its target to $160 , yet ARK's innovation ETFs sold 97,325 shares ahead of earnings. The tug-of-war between bulls and sellers leaves shareholders facing a binary outcome tomorrow — and history says to brace for turbulence.