Robinhood (HOOD -3.61%) reported second-quarter results on Wednesday that set records nearly everywhere you look. Record revenue. Record net deposits. A record number of Gold subscribers, and record trading volumes in both equities and options.

The stock slipped about 3% during Wednesday’s regular session, closing at $89.84 before the results arrived, then fell another 3.6% on Thursday, to $86.60. That leaves shares roughly 44% beneath the 52-week high of $153.86 they set back in October of last year.

So why won’t the market pay what it used to for a business performing like this? The latest report holds most of the explanation. Here’s a closer look at three things it tells us.

The records are broad, not narrow

Robinhood’s revenue reached $1.31 billion in the second quarter, a record, and 32% more than a year earlier. The growth rate more than doubled from the first quarter’s 15%, so the pace is accelerating, too.

Net deposits came in at about $22 billion for the quarter, and total platform assets climbed 32% year over year to $369 billion. Gold subscribers (members of the company’s premium tier, which bundles higher yields, lower margin rates, and other perks) reached a record 4.8 million, up 39%. Funded customers grew 7% to 28.4 million, and retirement assets under custody reached $34.5 billion, 82% higher than a year earlier.

Profitability scaled right along with it. Non-GAAP (adjusted) EBITDA rose 35% year over year to $741 million, a 57% margin.

Net income came in at $573 million, up 48% year over year, and earnings per share climbed at the same rate to $0.62. Both figures got help from about $0.14 per share of one-time gains, though, so the underlying earnings number is closer to $0.48.

The engagement stats were arguably the most impressive part. Equity trading volumes jumped 85% year over year to a record $956 billion, and options contracts traded rose 50% to a record 774 million. On the earnings call, chief financial officer Shiv Verma said the company now counts 13 separate businesses that have each reached $100 million in annualized revenue, two of them added during the quarter.

The mix behind the records changed

Look one layer down, though, and the composition of all that record revenue has shifted meaningfully.

Crypto trading revenue was $252 million as recently as the first quarter of 2025. In this year’s first quarter, it was $134 million. Last quarter, it was $100 million, down 38% year over year — the second quarter in a row of declines at a roughly 40% pace or worse.

What replaced it is younger. Equities revenue nearly doubled year over year to $129 million. Event contracts, the company’s prediction-markets business where customers trade on outcomes like elections and economic data, generated $156 million, up more than tenfold from a year earlier. A business line that barely existed at this scale a year ago now brings in more revenue than crypto does.

This, I’d argue, is what the market is discounting. Robinhood’s transaction revenue has always moved with whatever retail traders are excited about, and the excitement rotates. The records themselves aren’t in dispute. What the market keeps marking down is how repeatable they are, when the fastest-growing line has only recently begun proving itself at scale.

The drawdown hasn’t made the stock cheap

Today’s Change

(-3.61%) $-3.24

Current Price

$86.60

Key Data Points

Market Cap

$78BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.

Day’s Range

$86.21 – $92.57

52wk Range

$63.52 – $153.86

Volume

553.9K

Avg Vol

27.2M

Gross Margin

89.43%

A 44% decline sounds like a bargain. But as of this writing, shares sit at $86.60, or about 38 times earnings — a valuation that assumes plenty of growth ahead. And that’s with earnings flattered by the one-time gains mentioned above.

To be fair, the company is executing well beyond trading. Net interest revenue rose 9% year over year to $389 million, and the margin lending book more than doubled to $21.6 billion. The newer banking and retirement products continue to attract assets, too. Growth like that in platform assets could eventually make trading swings matter less to the overall business.

Is the stock a buy?

Ultimately, I think the market has this one about right. The company is executing about as well as anyone could ask, and the record quarter was broad-based. However, about 38 times earnings already pays for that execution, and the newest revenue lines haven’t yet shown they can hold up across a full market cycle.

If you own the stock, I don’t see anything in this report that argues for selling a business performing like this. I just wouldn’t buy shares on its strength, either. Another quarter or two showing the new revenue mix holding up (crypto stabilizing while event contracts keep growing) could change my mind at a similar price.

In his final earnings call as CEO, Cook said he has never been more optimistic about the opportunities ahead for Apple. “I am beyond excited,” said Cook, who has led the company for 15 years and will pass the CEO baton to John Ternus in September. But Cook’s confidence in the future stood in contrast to the picture that he and other executives painted of the current business conditions. 

“We’re seeing some very significant constraints currently, with limited flexibility in the supply chain,” Cook said. “There’s a quarter where we’re going to be scrambling on the supply side,” he acknowledged at another point. 

The supply crunch is making it more difficult for Apple to obtain the advanced processors it needs for its phones and computers. And that translates into lower revenue. 

Sales of the iPhone, which accounts for roughly half of Apple’s business, will grow at a “mid-teens” percentage rate in the current quarter, Apple said, forecasting a significant deceleration from the 22% growth the iPhone business posted in the recently ended quarter. Total revenue in the current quarter will grow between 9% and 10% year-over-year, which was below the 12% rate expected by analysts.

Gross profit margins, which came in at 48% of revenue (excluding the benefit of tariff refunds) in the most recent quarter, will come under pressure in the current quarter, Apple said. 

Shares of Apple fell as much as 8% in after hours trading on Thursday following the earnings results, before regaining some ground, with the stock later trading down roughly 6% from its closing price of $333.85. 

Apple, the world’s most valuable company (market cap $4.9 trillion!), has been one of the best performers among Big Tech stocks this year, with its shares up 23% in 2026. While Apple has been late to the AI game and struggled to develop its own AI models, investors have come to appreciate that the company is not locked in the AI infrastructure arms race that has swelled capital expenditures at Meta, Google, Microsoft, and Amazon. 

Last week, Google-parent company Alphabet’s stock plunged 7% after it raised its capex forecast for the year to above $200 billion and reported its first ever negative free cash flow. Meta’s stock took a similar drubbing this week. 

While Apple is not spending hundreds of billions in capex, its business is still feeling the effects of the AI arms race, specifically when it comes to memory chips. The demand for memory chips in the data centers being built to power AI is causing a shortage and sending prices skyrocketing. 

In June, Apple was forced to raise prices of its Macs and iPads to account for the inrecased cost of memory chips. “We did it because we’re in what I would characterize as a hundred year flood on the memory pricing,” Cook said on Thursday’s earnings call.

He lamented that the DRAM memory chip market is essentially owned by three companies, Micron, SK Hynix, and Samsung.  “If there were more suppliers that would be good. It would help us on  the supply side, and perhaps the pricing side,” Cook said, adding somewhat cryptically that Apple is “evaluating all options.”

Asked about Apple’s AI offerings, including the upcoming Siri AI, Cook said the company saw an opportunity in running more AI directly on users’ devices, an approach that Apple believes can appeal to privacy-minded users. “The ability to run some percentage of requests on-device is also very strategic, sort of a competitive weapon if you will,” Cook said. 

But he also noted that AI capabilities could lead to an increase in users of Apple’s iCloud offering–a potential boost to Apple’s Services business, its second largest business unit, with $30 billion in revenue last quarter.

Apple’s overall revenue in the three months ended June 30 totalled $109.4 billon, up 16% year over year, and roughly in line with analyst estimates. The company posted net income of $29.8 billion, or $2.02 per share, versus the $1.89 EPS expected by analysts. Apple said that roughly 11 cents of the EPS was attributed to a refund from President Trump’s tariffs. 

As for incoming CEO John Ternus, he was present for the earnings call, but did deliver prepared remarks and was not made available as an executive available for the Q&A portion. That didn’t stop one analyst from trying. 

The analyst wanted to know: How does Ternus view the competitive landscape, especially at a time when new competitors like SpaceX and OpenAI could be preparing to offer AI-powered hardware devices that would compete with Apple?

“I would just reiterate what Tim said,” Ternus said. “There is so much opportunity for us, with everything that’s happening in the space. We’re just really focused on our plans, and really excited about it.”