Robinhood suffers brutal weekly losses as Bitcoin and AI stocks take a hit

Robinhood stocks suffered a brutal weekly loss as the once-hot Bitcoin and AI stock trades that fueled its rise lost momentum.

The popular brokerage platform saw its shares drop 12.4% this week. The company’s shares fell 10.1% on Thursday and rebounded by 1% on Friday. November alone resulted in a loss of 27% of its market value.

The latest slide reflects a sharp reversal in the risky investing activity that Robinhood relies on. The company’s core business is closely tied to retail investors flocking to speculative corners of the market, particularly cryptocurrencies and popular artificial intelligence stocks.

These trades helped fuel Robinhood’s revenue and user engagement growth again earlier this year as bitcoin reached new highs and everything related to artificial intelligence soared. However, the recent failure of cryptocurrency market leaders and fast-growing technology companies exposes Robinhood’s sensitivity to mood swings.

Bitcoin dropped about 12% this week alone, hitting a new low of $80,548.09 on Friday, its lowest level since April. Shares in AI activator Nvidia down 6% this week.