Shares of Robinhood Markets (HOOD 3.25%) sold off sharply after the company released fourth-quarter financial results. While the company reported a 27% year-over-year increase in revenue, it slightly missed estimates. The stock entered the year trading at a valuation that reflects high growth expectations, so it's not surprising to see a small miss turn into a sharp sell-off after the earnings report.
But one reason the dip is a buying opportunity is that customers continue to bring more assets to Robinhood's platform. This has been a significant growth driver over the past few years, and it continues to point to a bright future for the platform.
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Net deposits totaled nearly $16 billion in the fourth quarter, representing an annualized growth rate of 19% relative to total platform assets in the previous quarter.
Importantly, net deposits have already hit $7 billion through the early part of the first quarter of 2026. This is crucial because as more assets move to the platform, it creates more opportunities to generate revenue through interest- and fee-related products, such as lending and the new Robinhood Banking service, which is just starting to roll out to Gold members.
The growth in deposits shows Robinhood building long-term relationships with its customers, as it also reported a 57% year-over-year increase in the number of retirement accounts opened last quarter. The revenue miss doesn't tell the story of the real growth happening on Robinhood's platform, which indicates where the stock is headed over the next several years. Buying the stock while it's down could pay off as the company continues to grow.
