The stock market is not fair.
The billion dollar players have rigged the game so regular folks do not have a fair chance.
That leaves us with a simple choice:
Keep losing to them or...
Get on the same side of the game with them.
Us? We'd rather be on the winning side with them.
Wouldn't you?
You'll see why you've been losing this rigged game and how to get on the winning side.
Talk soon,
Shawn Casey & Brian Koz
Why Robinhood's Nearly 50% Slide Is a Buy-the-Dip Opportunity
Written by Leo Miller. First Published: 2/12/2026.
Key Points
- Robinhood’s Q4 earnings miss on crypto revenue accelerated a sharp post-earnings selloff.
- The stock is now down nearly 50% from its high as investors sold after the company's latest earnings.
- Despite transaction-driven volatility, Robinhood continues to see strong deposit growth, supporting its outlook.
- Special Report: [Sponsorship-Ad-6-Format3]
After explosive gains in 2025, investors have punished financial services stock Robinhood Markets (NASDAQ: HOOD) this year.
The stock has struggled as cryptocurrencies like Bitcoin (BTC) plunged in 2026. Robinhood's earnings report, released on Feb. 10, accelerated the decline, and shares fell roughly 9% the following day as markets reacted.
This makes me furious (Ad)
I Called Black Monday. Now I'm Calling March 26!
I predicted the 1987 crash six weeks early. I called the fall of the Berlin Wall. I pinpointed the exact bottom in 2009.
Now I'm staking my reputation on March 26, 2026 - the day I believe Elon will announce the SpaceX IPO.
Bloomberg is calling it "the biggest listing of ALL TIME."
A $1.5 TRILLION valuation... the "wealth-building" moment of the decade.
Today, I'll show you how to get in before the big announcement.
Shares of HOOD have fallen nearly 50% from their all-time high close in October 2025. Could that create a buy-the-dip opportunity? Let's examine the fintech firm's latest financials to find out.
Crypto Miss Weighs on Robinhood's Q4 Earnings
In Q4 2025, Robinhood reported revenue of $1.28 billion, a 27% year-over-year (YOY) increase that missed analyst expectations of $1.32 billion. The largest shortfall came from crypto transaction revenue, which totaled $221 million, down 38% YOY and below estimates near $248 million.
Despite the revenue miss, adjusted earnings per share (EPS) came in at $0.66, down 35% YOY but beating estimates of $0.63. That year-over-year comparison was affected by a $0.47 tax benefit in Q4 2024 that boosted prior-year EPS.
For the full year, revenue rose 52% in 2025. Comparable adjusted operating expenses and share-based compensation (SBC) increased 22%. SBC totaled $305 million, essentially unchanged from 2024 — a positive sign that the company isn't inflating profitability by issuing more stock-based pay.
As a result, full-year adjusted EBITDA margin widened to 56.4%, up about 800 basis points from 2024.
Robinhood does not provide revenue guidance. At the midpoint, however, it expects adjusted operating expenses and SBC to rise about 18%. Management says more than half of that expense growth will go toward new and scaling businesses, which lessens near-term concern. On the earnings call, new CFO Shiv Verma said the company expects revenue growth to outpace rising expenses.
Despite Valuation Dependence, Deposits Provide Strength
Robinhood has attractive attributes, but it is unusually sensitive to crypto and equity market volatility.
In 2025, transaction revenue from options, equities and crypto made up 52% of total revenue (versus 53% in 2024). Crypto alone accounted for 20% (21% in 2024). Because transaction revenue tends to move with market valuations, Robinhood benefits when equity and crypto prices rise — long-term trends that can provide a meaningful tailwind.
Options trading revenue has increased for nine consecutive quarters, helped by options' ability to generate returns in both rising and falling markets.
Net deposits grew 35% in 2025, indicating asset growth driven not only by valuation gains but also by new investor funds. Prediction markets are another growth area: trading volumes doubled in Q4, and the company has labeled them a top growth priority going forward.
Analysts Eye Big-Time Upside in HOOD After the Fall
Wall Street reacted to the report with several price-target cuts — some falling by 10% or more, and two by 20% or more. Still, the MarketBeat consensus price target for Robinhood stands near $127, implying roughly 64% upside over the next 12 months. The average of targets issued or updated after the report is about $134, suggesting ~72% upside.
There may be a significant long-term opportunity after the stock's steep decline, but downside moves in crypto and equity markets remain key risks for HOOD. In addition, a lower federal funds rate could pressure Robinhood's net interest income if the Federal Reserve resumes rate cuts this year.
Going forward, the company's ability to sustain strong deposit growth and diversify its revenue will be important to monitor. Notably, Robinhood is targeting more than 20% net deposit growth in 2026.
Insiders Buy 3 High-Risk Stocks—Here's What's Driving the Moves
Written by Leo Miller. First Published: 2/9/2026.
Key Points
- Insiders are buying into GME, USAR and UA, providing interesting signals around these risky names.
- GameStop's CEO is outlining his intentions to make a big splash, and receiving support from famed investor Michael Burry.
- USA Rare Earth is orchestrating funding for its mine-to-magnet ambitions, and receiving insider purchases.
- Special Report: [Sponsorship-Ad-6-Format3]
When it comes to analyzing insider trades, investors should keep several important nuances in mind. For example, insider sales can often appear alarming until one realizes they were made under a predetermined Rule 10b5-1 plan. Because insiders must schedule these trades far in advance of their execution, they don't provide a clear bearish signal.
Meanwhile, insider buying tends to be a much better indicator for investors. As famed asset manager Peter Lynch once said, "Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise."
This makes me furious (Ad)
I Called Black Monday. Now I'm Calling March 26!
I predicted the 1987 crash six weeks early. I called the fall of the Berlin Wall. I pinpointed the exact bottom in 2009.
Now I'm staking my reputation on March 26, 2026 - the day I believe Elon will announce the SpaceX IPO.
Bloomberg is calling it "the biggest listing of ALL TIME."
A $1.5 TRILLION valuation... the "wealth-building" moment of the decade.
Today, I'll show you how to get in before the big announcement.
To this end, let's break down the recent insider buys and news surrounding three high-risk names: GameStop (NYSE: GME), USA Rare Earth (NASDAQ: USAR), and Under Armour (NYSE: UA).
Insiders and Michael Burry Buy GME Amid CEO's Bold Statements
GameStop has cycled through financial headlines for years, largely because of its association with the "meme-stock" phenomenon.
Recently, CEO Ryan Cohen spoke with the Wall Street Journal. Cohen reportedly wants to acquire a major public company to turn GameStop into a much larger firm. Notably, the company holds $8.8 billion in cash, cash equivalents, and marketable securities that could help finance an acquisition.
Details are scant, and Cohen himself acknowledged the uncertainty: "It's ultimately either going to be genius or totally, totally foolish." Despite that uncertainty, insiders and outside investors are buying GME shares.
Three insiders purchased a total of nearly $11 million in shares from Jan. 20 to Jan. 23.
Additionally, "Big Short" investor Michael Burry has been buying GME. While this insider buying is a positive signal, betting heavily on GameStop remains risky—especially since much of the recent insider buying came from Cohen himself.
USAR Insiders Make Purchases After Key Funding Announcements
USA Rare Earth is another company seeing notable insider buying. Two insiders purchased a total of around $2.17 million worth of shares on Jan. 29. Those buys came days after the company announced a non-binding letter of intent (LOI) with the U.S. Department of Commerce. That LOI could provide USAR with up to $1.6 billion in government funding, $1.3 billion of which would be in the form of a secured loan.
However, the agreement has not been finalized.
USAR has also secured $1.5 billion in financing from private investors, earmarked for building out its rare-earth mine-to-magnet value chain. Currently, MP Materials (NYSE: MP) remains the only U.S. company with a scaled rare-earth mining operation—a position USAR aims to challenge.
Given the strategic importance of rare-earth magnets to many technology companies and national defense, it's logical for the U.S. government to engage with USAR.
Clearly, the company's insiders are buying into its future, which is a bullish signal. Still, with significant volatility and government funding not finalized, USAR remains a high-risk stock.
Under Armour Sees Over $200 Million in Insider Buys
Last up is the seemingly forgotten apparel brand Under Armour. Since late December 2025, major shareholder Prem Watsa has purchased a large number of Under Armour shares.
Those shares were bought through subsidiaries of Fairfax Financial Holdings Limited, where Watsa serves as CEO. In total, Watsa (via Fairfax subsidiaries) acquired roughly $219 million of Under Armour stock from late December to early February, following about $1 million of insider purchases by three individuals in August 2025.
These buyers were partially vindicated on Feb. 6, when shares jumped more than 19% after Under Armour's latest earnings report, which beat sales expectations and produced an adjusted earnings-per-share surprise.
While these insider buys and the earnings beat are encouraging, the company's outlook is mixed. Much of the EPS beat was driven by a one-time tax benefit. The stock trades at a steep forward price-to-earnings ratio of about 59x, has reported negative sales growth for 11 consecutive quarters, and expects sales to decline again next quarter—factors that could make investors question its premium valuation.
Insider Buys: Positive Indicators, But Not Gospel
While these insider purchases are encouraging signals from the firms' key insiders, they are only one indicator investors should consider. Just as external market watchers can be wrong in their assessments of a stock's future, so can insiders.
This message is a sponsored email from Trade Canary, a third-party advertiser of MarketBeat. Why did I get this message?.
If you need assistance with your account, please email MarketBeat's South Dakota based support team at contact@marketbeat.com.
If you would no longer like to receive promotional emails from MarketBeat advertisers, you can unsubscribe or manage your mailing preferences here.
© 2006-2026 MarketBeat Media, LLC.
345 North Reid Place, Sixth Floor, Sioux Falls, S.D. 57103-7078. United States..
No comments:
Post a Comment