Robinhood crypto slump: Cathie Wood and Cantor back April trading rebound

Robinhood (HOOD) shares slid nearly 12% after the company missed first-quarter earnings and revenue expectations on April 28, largely blamed on weaker crypto trading activity. But the market reaction is being treated as temporary by several big investors and analysts—despite continued softness in crypto volumes. Cathie Wood’s Ark Invest bought about $39.7 million of Robinhood shares on Wednesday across three funds, reinforcing conviction that the “Robinhood crypto slump” is a speed bump rather than a structural break. The firm cited early April data showing some of the strongest equity and options trading volumes this year, which could offset crypto headwinds. Cantor Fitzgerald reiterated an ‘Overweight’ rating and a $110 price target, saying preliminary April equity/options activity is tracking toward the highest monthly level this year. Compass Point also maintained a ‘Buy’ rating (trimmed target to $107), arguing the sell-off is “backwards looking” given expectations for a stronger second quarter. Still, not all analysts are comfortable. Keefe, Bruyette & Woods (KBW) cut its target to $65 from $75 and warned that declining transaction fees could persist. It noted “capture rates” are missing across crypto and options, leading to trimmed earnings estimates through 2028. Bullish analysts also point to new revenue potential. Cantor highlighted Robinhood’s planned prediction markets platform, Rothera, as a catalyst for future revenue and margin expansion. Overall, the near-term focus for traders is whether the “Robinhood crypto slump” narrative holds—i.e., whether transaction revenue improves with sustained trading momentum—or whether fee and volume pressure carries into the second half.