Robinhood Markets shares down 1.8%, Coinbase declines 3.8%

Robinhood Markets shares down 1.8%, Coinbase declines 3.8%

July 02, 2025

In a day marked by market volatility, Robinhood Markets, Inc. (HOOD) and Coinbase (COIN) both experienced notable declines in their share prices. Robinhood Markets closed at $99.94, marking a 1.63% decrease from the prior day [1]. This move outpaced the S&P 500's daily gain of 0.14% but was less significant than the Dow's 0.2% rise and the Nasdaq's 0.27% increase [1]. Over the past month, Robinhood Markets saw a gain of 35.46%, outperforming the Finance sector's 2.72% and the S&P 500's 3.97% growth [1].

Coinbase shares, on the other hand, declined by 3.8% to close at $389, despite a rare double downgrade from investment firm H.C. Wainwright [3]. The downgrade warned of disappointing second-quarter results, but the stock's performance was buoyed by a rally in Bitcoin, which pushed past $113,000 on Thursday [3].

Analysts are closely monitoring Robinhood Markets' earnings report, expected on July 30, 2025. The company is anticipated to report earnings per share (EPS) of $0.29, up 38.1% from the prior year, and revenue of $891.64 million, indicating a 30.74% increase [1]. For the full fiscal year, the Zacks Consensus Estimates predict earnings of $1.26 per share and revenue of $3.64 billion, representing changes of +15.6% and +23.45%, respectively [1].

In terms of valuation, Robinhood Markets has a Forward P/E ratio of 78.36, which is a premium compared to its industry average Forward P/E of 16.7 [1]. The company's PEG ratio of 5.25 also indicates a higher valuation compared to the Financial - Investment Bank industry's average PEG ratio of 1.34 [1].

Bitcoin (BTC) experienced a notable decline on Tuesday, falling over 2% during the session to trade around $117,030 [2]. Despite the decline, Bitcoin ETFs reported $300 million in inflows, indicating continued investor confidence. Analysts believe that BTC's rally is far from over, with predictions suggesting the price could reach $135,000 before a market correction sets in [2].

Standard Chartered is allowing its institutional clients to trade Bitcoin and Ethereum through its UK branch, reflecting a growing demand for crypto products [2]. The bank's decision to offer spot crypto trading indicates a significant shift in the financial industry's approach to digital assets.

References:
[1] https://www.nasdaq.com/articles/robinhood-markets-inc-hood-beats-stock-market-upswing-what-investors-need-know
[2] https://www.ainvest.com/news/bitcoin-drops-2-surpassing-123-000-2507/
[3] https://www.coindesk.com/markets/2025/07/10/coinbase-shares-shrug-off-double-downgrade-to-close-higher-on-crypto-rally