Q3 Earnings Roundup: Robinhood (NASDAQ:HOOD) And The Rest Of The Financial Technology Segment

The tech industry anticipates a "Q-Day," a decade away, when the current encryption (RSA-2048) can be broken by quantum computers. As concerns mount that advances in quantum computing could eventually undermine current encryption standards, Coinbase is already setting up an advisory board to address a risk that many in the crypto industry believe is a few years away. 

Coinbase CEO Brian Armstrong said on Monday that the crypto exchange has established an independent advisory board to examine how advances in quantum computing could affect blockchain and cryptographic security.

On X, Armstrong pointed to security remaining Coinbase’s highest priority and that the company believes it is important to prepare for potential future threats, even if they are many years away. He said quantum computers “could have implications for blockchain/crypto” and that those implications should be considered early.

In a blog post, Coinbase said the advisory board will operate independently and will assess the intersection of quantum computing and blockchain technology. The company said the group includes researchers with expertise in quantum computing, cryptography, consensus mechanisms, and blockchain systems.

While the company did not outline specific timelines or technical outcomes, it said the goal is to ensure the topic is being “properly considered” as computing technology evolves.

Coinbase (COIN) was trading at $214.46, up by 0.46% in the after-market hours. On Stockwits, retail sentiment around COIN remained in ‘bullish’ territory, as chatter levels around it dropped from ‘high’ to ‘low’ over the past day. 

Broader Industry Discussion On Quantum Risk

Earlier this month, Ethereum (ETH) co-founder Vitalik Buterin said Ethereum should aim to become “cryptographically safe for 100 years” and called for the early deployment of quantum-resistant technology to protect the network over the long term. Buterin said delaying such preparations could increase long-term risk, even if quantum computing capabilities remain limited today.

According to Coinbase, its advisory board is intended to contribute to this broader discussion by evaluating potential future considerations related to blockchain security and cryptography.

Crypto investors are preparing for downside, as fresh survey data and U.S. trading signals point to fading risk appetite at the start of 2026.

On Friday, Coinbase Institutional said that a December survey of nearly 150 investors showed a sharp rise in expectations around the crypto market entering the bear phase.

Coinbase Institutional, the firm’s research arm, noted that 26% of institutional investors and 21% of non-institutional investors believe the market is in a bear phase. That compares with just 2% and 7%, respectively, in the firm’s September survey, marking one of the largest sentiment shifts across its quarterly readings.

The survey asked investors to identify which phase of the crypto market cycle they believe the market is currently in, including accumulation, bull market, late bull market, distribution, bear market, and late bear market.

Coinbase said the results reflect a change in how respondents are categorizing the current stage of the cycle compared with earlier readings.

US Bitcoin Pricing Shows Sustained Discount

According to data from CoinGlass, the Coinbase Bitcoin Premium Index has remained negative for nine consecutive days, standing at -0.1399%. The index has been positive for only two days so far in January. Bitcoin (BTC) was trading at $89,486, up by 0.5% in 24 hours. On Stocktwits, retail sentiment around Bitcoin remained in ‘bearish’ territory, as chatter remained at ‘normal’ levels over the past day.

The Coinbase Bitcoin Premium Index tracks the difference between the price of Bitcoin on Coinbase and the average price across global exchanges. CoinGlass data shows that a negative reading indicates Bitcoin is trading at a discount on Coinbase relative to offshore markets.

Separately, on-chain data pointed to continued selling pressure. 

According to Glassnode, Bitcoin has fallen below the 0.75 supply cost-basis quantile, meaning a majority of circulating BTC is currently held at a loss. Glassnode also said Bitcoin’s recent attempt to reclaim the short-term holder cost basis near $98,400 was met with selling from holders in the 3 to 6 month cohort, whose average cost basis sits around $112,600.

Focus Shifts To Capital Flows And Positioning

In its post, Coinbase Institutional also asked whether the market is approaching the final stage of price discovery before transitioning into a new accumulation phase. The firm did not provide a forecast or timeline.

What Happened?

A number of stocks jumped in the afternoon session after President Trump cooled fears of a transatlantic trade war by calling off scheduled tariffs on European allies. 

The rally followed a productive meeting in Davos with NATO Secretary General Mark Rutte, where a "framework of a future deal" regarding Greenland and the Arctic region was established. By explicitly ruling out the use of military force and suspending the 10% tariffs previously set for February 1st, the administration provided the "sigh of relief" the market desperately needed after Tuesday's sharp sell-off.Technology and semiconductor leaders like Nvidia and AMD spearheaded the recovery as investors quickly pivoted back into growth stocks. 

The "Sell America" trade from the prior session reversed sharply, with the Nasdaq Composite jumping 1.5% and the S&P 500 erasing its 2026 losses. This rebound was further supported by a stabilization in the bond market; as tariff-related inflation fears subsided, the 10-year Treasury yield retreated from its recent highs, creating a more favorable backdrop for equity valuations across the board.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Online Marketplace company Etsy (NASDAQ:ETSY) jumped 4%. Is now the time to buy Etsy? Access our full analysis report here, it’s free.
• Gig Economy company Upwork jumped 2.9%. Is now the time to buy Upwork? Access our full analysis report here, it’s free.
• Online Retail company Wayfair jumped 2.7%. Is now the time to buy Wayfair? Access our full analysis report here, it’s free.
• Financial Technology company Remitly jumped 2.9%. Is now the time to buy Remitly? Access our full analysis report here, it’s free.

Zooming In On Etsy (ETSY)

Etsy’s shares are very volatile and have had 28 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock dropped 3.1% on the news that the U.S. announced potential tariffs on several European countries. 

The sell-off was a reaction to news that the White House planned to impose a 10% tariff on imports from eight European nations, including France, Germany, and the United Kingdom, starting February 1. Reports indicated the tariffs were intended to pressure Denmark over the potential sale of Greenland to the U.S. and could rise to 25% if a deal was not reached. The announcement caused a significant downturn in U.S. stocks, with the S&P 500 and Dow Jones falling more than 1.4% as investors returned from a holiday weekend and reacted to the heightened trade uncertainty. The downturn was further exacerbated by a spike in Treasury yields. Higher rates particularly hurt growth stocks such as tech names since investors must discount financials further out in the future back to the present.

Etsy is up 6.5% since the beginning of the year, but at $60.99 per share, it is still trading 19.3% below its 52-week high of $75.56 from October 2025. Investors who bought $1,000 worth of Etsy’s shares 5 years ago would now be looking at an investment worth $286.94.

What Happened?

A number of stocks jumped in the afternoon session after President Trump cooled fears of a transatlantic trade war by calling off scheduled tariffs on European allies. 

The rally followed a productive meeting in Davos with NATO Secretary General Mark Rutte, where a "framework of a future deal" regarding Greenland and the Arctic region was established. By explicitly ruling out the use of military force and suspending the 10% tariffs previously set for February 1st, the administration provided the "sigh of relief" the market desperately needed after Tuesday's sharp sell-off.Technology and semiconductor leaders like Nvidia and AMD spearheaded the recovery as investors quickly pivoted back into growth stocks. 

The "Sell America" trade from the prior session reversed sharply, with the Nasdaq Composite jumping 1.5% and the S&P 500 erasing its 2026 losses. This rebound was further supported by a stabilization in the bond market; as tariff-related inflation fears subsided, the 10-year Treasury yield retreated from its recent highs, creating a more favorable backdrop for equity valuations across the board.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Online Retail company Carvana jumped 3%. Is now the time to buy Carvana? Access our full analysis report here, it’s free.
• Online Retail company Revolve jumped 5%. Is now the time to buy Revolve? Access our full analysis report here, it’s free.
• Consumer Subscription company Bumble jumped 3%. Is now the time to buy Bumble? Access our full analysis report here, it’s free.
• Online Marketplace company Shutterstock jumped 4.3%. Is now the time to buy Shutterstock? Access our full analysis report here, it’s free.
• Financial Technology company LendingTree jumped 3%. Is now the time to buy LendingTree? Access our full analysis report here, it’s free.

Zooming In On Revolve (RVLV)

Revolve’s shares are very volatile and have had 29 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock dropped 5.2% on the news that the U.S. announced potential tariffs on several European countries. 

The sell-off was a reaction to news that the White House planned to impose a 10% tariff on imports from eight European nations, including France, Germany, and the United Kingdom, starting February 1. Reports indicated the tariffs were intended to pressure Denmark over the potential sale of Greenland to the U.S. and could rise to 25% if a deal was not reached. The announcement caused a significant downturn in U.S. stocks, with the S&P 500 and Dow Jones falling more than 1.4% as investors returned from a holiday weekend and reacted to the heightened trade uncertainty. The downturn was further exacerbated by a spike in Treasury yields. Higher rates particularly hurt growth stocks such as tech names since investors must discount financials further out in the future back to the present.

Revolve is up 2.2% since the beginning of the year, and at $30.22 per share, it is trading close to its 52-week high of $31.78 from February 2025. Investors who bought $1,000 worth of Revolve’s shares 5 years ago would now be looking at an investment worth $860.97.

Check out the companies making headlines yesterday:

Generac : Power generation products company Generac rose on Tuesday after Barclays lowered its price target on the stock from $197 to $186. See our full article here.

Coinbase : Blockchain infrastructure company Coinbase fell by 4.4% on Tuesday after the U.S. announced potential tariffs on several European countries. See our full article here.

Forestar Group : Residential lot developer Forestar Group fell by 5.1% on Tuesday after the company reported mixed fourth-quarter 2025 results, with an earnings miss overshadowing a revenue beat. See our full article here.

Nova : Semiconductor quality control company Nova rose by 3.3% on Tuesday after Needham upgraded its rating on the stock from 'Hold' to 'Buy' and set a price target of $500. See our full article here.

Intel : Computer processor maker Intel rose by 2.6% on Tuesday after Wall Street signaled belief in the turnaround narrative, as the company received a dual vote of confidence from major analyst firms just days before its fourth-quarter earnings report. See our full article here.

What Happened?

Shares of financial services company Robinhood fell 1.6% in the afternoon session after the U.S. announced potential tariffs on several European countries. 

The sell-off was a reaction to news that the White House planned to impose a 10% tariff on imports from eight European nations, including France, Germany, and the United Kingdom, starting February 1. 

Reports indicated the tariffs were intended to pressure Denmark over the potential sale of Greenland to the U.S. and could rise to 25% if a deal was not reached. The announcement caused a significant downturn in U.S. stocks, with the S&P 500 and Dow Jones falling more than 1.4% as investors returned from a holiday weekend and reacted to the heightened trade uncertainty. The downturn was further exacerbated by a spike in Treasury yields. Higher rates particularly hurt growth stocks such as tech names since investors must discount financials further out in the future back to the present.

What Is The Market Telling Us

Robinhood’s shares are extremely volatile and have had 56 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 11 months ago when the stock gained 15.3% on the news that the company reported strong fourth quarter 2024 results, which blew past analysts' revenue, EPS, and EBITDA expectations. 

Specifically, cryptocurrency trading revenues soared by 700%+ year-on-year while equities and options increased by 144% and 83%, respectively - note that crypto and options trading are more profitable business lines than equities due to the wider spreads. Margins expanded significantly, with net income jumping over tenfold to $916 million, while earnings per share more than tripled from the previous year, benefiting from higher trading volumes. Looking ahead, management sees continued momentum, with a focus on expanding its crypto offerings and international reach, particularly in the Asia-Pacific region.Zooming out, we think this was a good quarter with some key areas of upside.

Robinhood is down 7.1% since the beginning of the year, and at $107.00 per share, it is trading 29.8% below its 52-week high of $152.46 from October 2025. Investors who bought $1,000 worth of Robinhood’s shares at the IPO in July 2021 would now be looking at an investment worth $3,073.