Robinhood (HOOD) stock closed at $89.84 on July 29, down 3.15%, slipping under $90 even after the company posted its best quarter ever.

The drop was not really about the numbers. HOOD has fallen about 14% in five days and roughly 20% this year, so the weakness runs deeper than one earnings report.

HOOD Earnings Beat, but the Market Sold the News

Robinhood reported record revenue of $1.31 billion, up 32% from a year earlier.

Adjusted earnings came in at $0.62 per share, far above the roughly $0.42 that analysts expected.

The mix told the real story. Prediction markets generated $156 million, overtaking both equities at $129 million and crypto at $100 million for the first time.

That shift matters because crypto revenue fell 38% year over year, after an even sharper crypto revenue slide in the prior quarter, yet total revenue still hit a record. However, the year-to-date stock price weakness persisted.

Robinhood now runs 13 businesses above $100 million in annual revenue, far from its meme-broker image. One markets account said Robinhood “proved it’s more than a crypto stock.” And that outlook is now visible in the analysts’ calls.

In the days before the report, the latest analyst calls stayed split but constructive. Barclays and Truist both reiterated buy ratings, with a Barclays Robinhood price target of $122, while JP. Morgan and Morgan Stanley kept hold ratings at $99 and $124.

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Each target still sat near or above the price, so Wall Street was not braced for a collapse. The company also kept buying back stock under a buyback plan it authorized earlier this year.

Part of the profit came from a one-time gain, which invites some caution on earnings quality. Even so, a double beat could not lift the shares.

Options Traders Are Still Hedging for Downside

Robinhood’s options market shows lingering caution. The put-call ratio, which weighs bearish put bets against bullish calls, sits near 0.66 in open interest, a high reading that favors puts.

The volume ratio has climbed toward 0.60 as well. That rise suggests desks kept adding downside hedges around the earnings date rather than betting on a pop.

Hedging shows fear, however, and not always where cash is truly flowing.

Money Flow Improves as Selling Pressure Fades

Deeper data hints the selling may be cooling. Chaikin Money Flow (CMF), a gauge of whether institutional money is buying or selling, reads -0.09 and tried to cross above zero around July 24.

It failed, so institutions are likely still net sellers. Yet, CMF rose between July 27 and July 28 while the price fell, a small bullish divergence. This shows that the big institutional money is bleeding less as compared to the price. However, the CMF needs to move above zero for the HOOD stock to show price-specific positivity.

Volume backs that up. Selling volume has thinned since early July even as the stock dropped, which suggests that even retail sellers are losing steam.

None of this confirms a bottom, though, so the HOOD price chart has to settle the argument.

Robinhood Stock Price Levels That Decide the Next Move

The chart still looks weak. Since June 9, Robinhood has traced a head and shoulders pattern, a topping shape where a high sits between two lower peaks, and it broke down on July 24, days before earnings. The breakdown structure still remains intact, which now explains why the options traders lean bearish.

The breakdown has stalled at $89.87, which also marks the 0.786 Fibonacci retracement. If that floor holds, the roughly 21% target near $76.53 may not fill, especially after a near 10% drop.

A hold above $89.87 and a reclaim of $93.84 would open room back toward the analyst targets. Real strength, however, only returns above $108.45, the right shoulder, which looks distant for now.

For now, $89.87 separates a possible rebound from a deeper slide toward $76.53.

Source: BeInCrypto