Robinhood Stock Slides 3% with $7.6B Volume Ranking 12th as Revenue Jumps 45%

Robinhood Markets (HOOD) closed August 1, 2025, with a 3.06% decline, trading at $99.57 per share. The stock recorded a daily trading volume of $7.63 billion, ranking 12th in market activity. Despite the drop, the company reported a 45% year-over-year revenue increase to $989 million, exceeding earnings estimates with $0.42 per share.

Analysts revised price targets for HOOD shares, with estimates spanning $106 to $130. Key firms like Barclays and Mizuho raised their targets to $120 and $130, respectively, reflecting confidence in long-term growth. However, recent volatility, including a 3.4% intraday decline to $93.36, highlighted sensitivity to broader market uncertainties.

Institutional investors increased stakes in Q2, with entities like IQ EQ FUND MANAGEMENT and Fjarde AP Fonden boosting holdings by over 20%. Conversely, insider sales, including CEO Vladimir Tenev’s $69.95 million transaction, indicated mixed signals. Institutional ownership now stands at 93.27% of the stock.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day delivered a 166.71% return from 2022 to the present, outperforming the benchmark return of 29.18% by 137.53%. This underscores the role of liquidity concentration in short-term stock performance, particularly in volatile markets. The outperformance highlights the effectiveness of leveraging high-volume stocks for capturing price volatility, though risks from abrupt market shifts remain significant.