Robinhood stock drops as trading volumes decline

Investing.com -- Robinhood shares fell more than 8% on Thursday after the brokerage reported a sharp drop in November trading activity.

Reacting to Robinhood’s monthly statistics, Cantor analyst Brett Knoblauch said Robinhood disclosed “a notable m/m decline in trading volumes across much of its business,” following an unusually strong October.

Equity volumes fell 37% month over month, options volumes dropped 28%, and crypto volumes declined 12% on a per-day basis, though Cantor noted that crypto activity still rose on that basis.

With both equity and crypto markets weakening during November, assets under custody fell 5% month-on-month to $325 billion, the first monthly decline since February.

The firm also said funded accounts slipped by roughly 130,000, which Cantor attributed to Robinhood pruning “~280k low-balance inactive accounts from its platform.”

Despite softer volumes, November delivered Robinhood’s third-best month of the year for net deposits at $7.1 billion, up nearly 27% from October.

Cantor highlighted prediction markets as a standout growth area, with “3bn event contracts traded… up 20% from October and 500% y/y.”

Robinhood this week also announced its entry into Indonesia through agreements to acquire brokerage PT Buana Capital Sekuritas and licensed crypto trader PT Pedagang Kripto.

Cantor called the move a “TAM expansion play” that broadens the company’s international reach, with the deal expected to close in the first half of 2026.

Looking ahead, Cantor pointed to Robinhood’s YES/NO event on Dec. 16 as the next key catalyst.

While November data “was not as strong as previous months,” Cantor reiterated its Overweight rating, trimming its price target to $152 from $155.

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