Analyst issues bold call on Cathie Wood's favorite crypto stock
Robinhood Markets (NASDAQ: HOOD) may be one of Cathie Wood’s most prized crypto holdings, but at least one Wall Street analyst thinks the stock has run too far.
Even after a fresh debt raise meant to signal confidence, Barclays is pointing to meaningful downside.
Robinhood Markets is a commission-free trading platform that launched its app in 2015, popularizing zero-fee investing for retail traders. Beyond stocks and options, it runs a sizable crypto arm, letting users buy, sell, and hold Bitcoin (BTC), Ethereum (ETH), and other tokens.
Its June 2025 acquisition of exchange Bitstamp deepened that footprint, making digital-asset revenue a closely watched part of its business.
However, Robinhood has seen a decline in its crypto revenue, which fell 47% year over year to $134 million in the first quarter of 2026. Over the same period, crypto trading volume on the Robinhood app itself dropped 48% year over year to $24 billion.
Total crypto notional volume came in at $66 billion, but that figure includes $42 billion from Bitstamp, which Robinhood only began consolidating into its results in June 2025 and which carries no year-over-year comparison.
Related: Robinhood acquires crypto exchange Bitstamp despite SEC lawsuit threat
What is happening with Robinhood?
On June 22, Robinhood confirmed plans to sell $2 billion in convertible senior notes due 2029, and the stock dropped about 2.2% in premarket trading on the news. Roughly $300 million of the proceeds is earmarked for share buybacks, with a portion funding capped calls designed to offset dilution up to a 125% premium.
A debt sale tied to a buyback usually reads as a vote of confidence. The timing is awkward, though, because just a few days earlier, on June 16, Robinhood said it would cut about 10% of its full-time workforce to ship products faster and run leaner.
At press time, HOOD closed at $103.25, down 2.33%.
As per TipRanks, on June 22, Barclays analyst Benjamin Budish reiterated his Buy rating on Robinhood but left his price target at $82. This is well below where the stock now trades, implying close to 20% downside from current levels.
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Is Robinhood still Cathie Wood’s favorite?
On June 17, Wood’s ARK funds trimmed exposure, with ARKK selling 275,572 Robinhood shares, worth nearly $29 million.
Yet HOOD remains a top holding across her crypto-leaning portfolios. As of June 23, it is the second-largest position in ARKF at 6.56%, the third-largest in ARKK at 4.94%, and the third-largest in ARKW at 6.11%.