Robinhood’s November Metrics Signal a Pause in Trading Momentum

Robinhood Markets released its key performance indicators for November on December 10, painting a nuanced picture for the trading platform. Following an extraordinary rally of more than 260% in its share price since the start of the year, the latest data reveals a notable cooling in user trading activity. However, this slowdown coincides with sustained strength in another critical area: net asset inflows. This divergence raises questions about whether the platform is experiencing a brief consolidation or the early stages of a broader shift.

Robust Capital Inflows Contrast with Trading Dip

A standout figure from the November report is the continued robust net asset flow onto the platform. Robinhood recorded $7.1 billion in net deposits for the month. Over the trailing twelve-month period, these cumulative net inflows reached $70.2 billion, representing a 36% year-over-year increase.

Assets Under Custody (AUC) stood at $325 billion as of the end of November. While this marks a 5% decrease from October’s level—likely attributable to broader market movements—it still constitutes a substantial 67% gain compared to November of the previous year. The number of funded accounts saw a marginal decline, dipping by approximately 130,000 to 26.9 million, yet remains 2.1 million higher year-over-year.

Trading Volumes Retreat Across Key Segments

The most pronounced shift in November was a broad-based decline in trading volumes across Robinhood’s core offerings. Equity trading volume fell 37% month-over-month to $201.5 billion. Options trading activity also decreased, with 193.2 million contracts traded, down 28% from October. Even cryptocurrency volume, a recent growth driver, retreated by 12% to $28.6 billion.

Despite the monthly drop, the year-over-year comparison remains favorable. Equity trading volume for November was 37% higher than in the same month last year. Furthermore, margin balances surged by 147% to $16.8 billion compared to November 2024.

Should investors sell immediately? Or is it worth buying Robinhood?

Expansion Plans and Analyst Reaction

Amidst this mixed operational data, Robinhood is advancing its international strategy. The company plans to enter the Indonesian market through the acquisition of local broker PT Buana Capital Sekuritas and crypto firm PT Pedagang Aset Kripto. This transaction, targeted for completion in the first half of 2026, aims to tap into a market with an estimated 36 million investors.

In response to the November metrics, Bank of America adjusted its valuation model. On December 10, the firm reduced its price target for Robinhood shares from $166 to $154. However, it maintained its Buy rating. The analysts cited the weaker trading volumes as a near-term headwind but reiterated a positive view based on the platform’s persistent capital gathering strength.

Event Contracts Emerge as a Bright Spot

One segment bucking the downward volume trend was Event Contracts, which include prediction markets. Trading in this category rose 20% from October to 3.0 billion contracts in November, establishing it as an increasingly relevant contributor to overall platform activity.

The November snapshot presents a tale of two trends: softening user engagement in trading juxtaposed with unwavering confidence in the platform for holding assets. Whether this reflects a temporary pause following a remarkable run or the beginning of a more sustained normalization will become clearer in the months ahead.