Robinhood Is One of the Worst-Performing Stocks in the S&P 500 This Year. Is It Overdue for a Rally?

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It's a brutal performance, but there are many stocks that have been doing even worse.Robinhood (NASDAQ: HOOD)'s stock has already fallen 42% through just the first three months of the year. And over the past 12 months, its valuation has been cut in half, easily making it one of the worst-performing stocks on the entire S&P 500 index during that stretch.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »Could the stock be heading even lower, or has the market been too harsh on Robinhood, and is it overdue for a big rally?Image source: Getty Images.Robinhood has generally been a popular stock with retail investors. Its user base is fairly young, it allows crypto trading on its platform, it has launched prediction markets, and it has also been pushing the envelope with innovation, such as offering stock tokens in the European Union.Despite the seemingly endless opportunities in the market, however, the stock has been nosediving this year. That could be due to a number of factors, including its valuation being fairly high, plus competition appearing to ramp up, particularly in the prediction markets. The market may be worried about whether the stock's feverish and impressive growth can continue. The company's revenue rose by 52% last year, but over just the last three months of 2025, its top line increased at a slower rate of 27%. There may also be growing concern that, if economic conditions worsen, retail investors will trade less, further weighing down its numbers in future quarters.Robinhood's growth has been impressive in recent years, and it still has plenty of room to grow further, with new opportunities in prediction markets proving especially attractive. The sell-off in its share price this year has also made it a more attractive buy -- the stock is now trading at 32 times its trailing earnings, down from well over 60 several months earlier. And the consensus analyst price target for the stock is $117.48 (as of March 30), implying an upside of around 78% in just the short term.The stock hasn't been this cheap since May, and while there may continue to be some short-term volatility in its price, its future remains bright. A rally may not be coming just yet, but if you're willing to hang on amid the current adversity in the market, Robinhood can be an excellent growth stock to simply buy and hold.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoTrending tickersRZLV Rezolve AI PLC 2.5400 +0.1500 (+6.30%)ELAB PMGC Holdings Inc. 3.1301 +1.4601 (+87.43%)BFRG Bullfrog AI Holdings, Inc. 1.0850 +0.5767 (+113.03%)XOM Exxon Mobil Corporation 174.50 +3.51 (+2.05%)SYY Sysco Corporation 72.32 -9.49 (-11.60%)PortfolioSign in to access your portfolioSign inTop gainersUTHR United Therapeutics Corporation 596.13 +73.30 (+14.02%)CLMT Calumet, Inc. 35.66 +3.60 (+11.23%)AA Alcoa Corporation 64.48 +6.07 (+10.39%)BBWI Bath & Body Works, Inc. 18.47 +1.67 (+9.91%)CENX Century Aluminum Company 54.04 +4.39 (+8.84%)Top losersFRMI Fermi Inc. 5.16 -1.02 (-16.50%)AXTI AXT, Inc. 51.16 -9.47 (-15.62%)AAOI Applied Optoelectronics, Inc. 85.89 -12.32 (-12.54%)LASR nLIGHT, Inc. 56.10 -8.22 (-12.79%)SYY Sysco Corporation 72.21 -9.59 (-11.72%)Most activeNVDA NVIDIA Corporation 167.65 +0.12 (+0.07%)ONDS Ondas Inc. 8.30 -0.50 (-5.69%)FRMI Fermi Inc. 5.16 -1.02 (-16.50%)INTC Intel Corporation 41.88 -1.26 (-2.91%)MU Micron Technology, Inc. 339.84 -17.23 (-4.83%)Top economic eventsEarnings eventsMy earnings eventsEarnings events