Robinhood Stock Drops Nearly 20% in Monday Trading

Robinhood (HOOD) shares slumped Monday, dropping to levels last seen in November as broader markets fell.

Shares of the app-based trading platform were recently down nearly 20% to around $36; just last month, the stock traded at roughly $67. Recession fears and tariff worries weighed on US stocks broadly to start the week.

Investors also got their first chance to react to Friday’s announcement that the online trading platform has been fined by the Financial Industry Regulatory Authority (FINRA). The independent regulator said Friday that it fined Robinhood $26 million for a number of violations, and said the company will pay an additional $3.75 million to select customers as restitution.

FINRA said the violations include Robinhood failing to put adequate anti-money laundering practices in place, along with issues with its clearing technology system. Robinhood also provided customers with “inaccurate or incomplete disclosures” around its policy of changing market orders to limit orders, the issue for which it will pay restitution.

Robinhood ‘Pleased to Resolve’ Matter

“We are pleased to resolve these historical matters, many of which date as far back as 2014, and which Robinhood Securities and Robinhood Financial have since remediated,” Robinhood associate general counsel Erica Crosland said in a statement to Investopedia.

In accepting the fine, the online trading platform has not admitted or denied any wrongdoing, FINRA said. The fine follows last month’s announcement that Robinhood would not face penalties from the Securities and Exchange Commission over an investigation into its cryptocurrency exchange.

Robinhood shares have more than doubled in value over the last year, but are down from a Feb. 14 close of $65.28, their highest close since the record levels reached following Robinhood’s 2021 initial public offering.

This article has been updated since it was first published to reflect new share-price information.