Robinhood Is Down 18% in 313 Days. What History Says

Robinhood Is Down 18.2% in 313 Days. What History Says

Robinhood Markets, Inc. (HOOD) is now down 18.2% from its all-time high as of September 3, 2026, having just exited the red zone after 313 days. The Drawdown Severity Score™ has improved to 3.0, placing the stock in the Moderately Elevated yellow zone. In 2 comparable prior drops of this depth, the stock took an average of 710 days to recover.

Tracking the Peak Severity and Previous Drawdown Depth

The current drawdown cycle for Robinhood has spanned 313 days as of September 3, 2026. During this prolonged period, the stock entered the red zone, which represents our highest risk severity classification. The peak of this drawdown cycle occurred when the price experienced its maximum divergence from the all-time high of $152.46.

Our data shows that the transition out of the red zone and into the yellow zone indicates that the severity score is moderating. This shift suggests that the extreme downward momentum has stabilized, allowing the stock to establish a baseline. While the asset remains in a significant drawdown, the move to a Moderately Elevated classification marks a measurable shift in trading behavior.

Current Position: Inside the Moderately Elevated Yellow Zone

With a current price of $124.72 as of September 3, 2026, Robinhood remains 18.2% below its peak. The current Drawdown Severity Score™ of 3.0 places the stock within the yellow zone, indicating that risk remains elevated but is no longer critical. This zone serves as a statistical middle ground where the asset is no longer falling rapidly but has not yet reclaimed its historical trading ranges.

To understand the scale of the current 18.2% decline, we can compare it to the asset's broader historical record. Across all 17 historical drawdown events tracked in our database, the average maximum drawdown for HOOD is -8.9%. The current decline of 18.2% is more than double this historical average, illustrating that the current cycle is significantly more severe than a typical pullback.

The duration of the current cycle also represents a major departure from historical norms. The average drawdown duration for HOOD across all historical events is 88 days. At 313 days, the current drawdown has lasted more than three times longer than the historical average, making it one of the most persistent periods of price depression in the stock's history.

Historical Comparison: How Prior HOOD Drawdowns Compare

Analyzing how major pullbacks have resolved in the past provides essential context for evaluating the current recovery timeline. Our database tracks a total of 17 historical drawdown events for HOOD since its inception. Within this historical dataset, we have observed only 2 instances where the stock dropped by 10% or more from its peak.

These 2 comparable prior drops of 10% or more took an average of 710 days to recover. It is critical to note the small sample size of only 2 events when evaluating this average duration. With so few historical precedents of this magnitude, the average recovery time of 710 days should be viewed as a broad benchmark rather than a highly predictive metric.

To illustrate how the current drawdown compares to historical averages, we have compiled the relevant metrics in the table below.

The data in the table highlights the contrast between a standard pullback and a major drawdown event for this asset. While a typical pullback is resolved in under three months, deeper drawdowns of 10% or more have historically required nearly two years to fully recover. The current 313-day duration sits roughly halfway through that historical average recovery timeline for major drops.

Valuation Context and Historical Multiples

To provide further context, we can examine how the stock's valuation multiple compares to its own historical trading history. As of the valuation snapshot date of 2026-08-31, the Price-to-Sales (P/S) ratio for HOOD stands at 23.0, which places it in the 86th percentile of its own daily P/S record since 2021-07-29. This indicates that despite the 18.2% price drawdown from its all-time high, the current multiple sits well above its own typical historical range, contrasting with a historical median P/S ratio of 9.0.

Data Limits and Methodology

This analysis is based strictly on historical price and drawdown data compiled by DrawdownAlerts as of September 3, 2026. We do not incorporate external market narratives, corporate earnings, regulatory changes, or macroeconomic indicators in our calculations. The Drawdown Severity Score™ and zone classifications are mathematical models designed to measure price deviation from historical peaks.

Because this methodology relies solely on price action, it does not attempt to explain the underlying causes of the stock's price movements. Historical performance and recovery timelines are not guarantees of future outcomes. Investors should use these metrics as objective data points within a broader risk management framework.

What to Watch: Key Severity Thresholds for HOOD

As HOOD continues to trade in the yellow zone, several key price and drawdown levels will determine its future zone classification. To completely erase the current drawdown, the stock must rise by approximately 22.24% from its current price of $124.72 to reach its all-time high of $152.46. A sustained upward move that reduces the drawdown below 10% would likely lower the Drawdown Severity Score™ below 3.0, moving the stock toward the green zone.

Conversely, if selling pressure intensifies, a reversal could push the stock back into the red zone. A decline back toward or below the previous peak drawdown levels would trigger an increase in the severity score. Monitoring these specific mathematical boundaries allows investors to track changes in risk regime without relying on subjective market commentary.

We will continue to monitor the daily trading data for HOOD and update the Drawdown Severity Score™ as new price points are established.