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Robinhood Stocks suffered a brutal weekly loss as the once-red-hot trades in Bitcoin and AI stocks that had driven growth lost momentum.
The popular brokerage platform saw the stock fall 12.4% this week. The stock fell 10.1% on Thursday and recovered 1% on Friday. November alone wiped out 27% of its market value.
The recent decline reflects a significant turnaround in the risk-hungry investing activity that Robinhood relies on. The company's core business is closely tied to retail investors who flock to speculative areas of the market, particularly cryptocurrencies and popular artificial intelligence stocks.
Those trades helped Robinhood's revenue and user engagement rebound earlier this year as Bitcoin hit new highs and anything related to artificial intelligence surged. But the recent crash in crypto and high-growth tech stocks shows how sensitive Robinhood is to swings in sentiment.
Bitcoin is down about 12% this week alone, hitting a new low of $80,548.09 on Friday, its lowest level since April. Shares of AI enablers Nvidia are down 6% this week.