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Robinhood shares suffered brutal weekly loss as the once-red-hot trades in bitcoin and AI stocks that powered its growth lost momentum.
The popular brokerage platform saw the stock decline 12.4% this week. The stock tumbled 10.1% on Thursday and rebounded 1% Friday. November alone has erased 27% of its market value.
The latest slide reflects a sharp reversal in the risk-hungry investment activity Robinhood relies on. The company’s core business is closely tied to retail investors pouring into speculative corners of the market, particularly cryptocurrency and buzzy artificial intelligence stocks.
Those trades helped fuel a resurgence in Robinhood revenue and user engagement earlier this year as bitcoin hit fresh highs and anything tied to artificial intelligence soared. But the recent rout in crypto and high-growth tech stock leaders is exposing Robinhood’s sensitivity to sentiment swings.
Bitcoin has fallen about 12% this week alone, hitting a fresh low of $80,548.09 on Friday, the lowest level since April. Shares of AI enabler Nvidia are down 6% this week.