What Happened?
A number of stocks fell in the morning session after the strong payroll print (172,000, more than double the 80,000 consensus) confirmed the higher-for-longer narrative and sent the 10-year yield above 4.5%, compressing valuations across high-multiple digital platforms.
CME FedWatch shifted to price rate hike risk by year end (the first time this cycle) changing the directional signal investors had been using to justify premium multiples for growth-oriented internet businesses. The pressure was valuation-driven rather than earnings-driven.
Digital advertising, subscription, and platform business models remain structurally intact, but when the risk-free rate moves materially higher, the long-duration cash flows embedded in internet stock valuations are discounted more aggressively. The jobs report added a secondary consumer demand concern: higher rates mean tighter consumer credit and less discretionary spending on subscriptions and digital services, the revenue base on which these multiples rest.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Gig Economy company Angi (NASDAQ: ANGI) fell 3.8%. Is now the time to buy Angi? Access our full analysis report here, it’s free.
- Financial Technology company Robinhood (NASDAQ: HOOD) fell 4.3%. Is now the time to buy Robinhood? Access our full analysis report here, it’s free.
- Online Marketplace company Sea (NYSE: SE) fell 4.3%. Is now the time to buy Sea? Access our full analysis report here, it’s free.
Zooming In On Robinhood (HOOD)
Robinhood’s shares are extremely volatile and have had 47 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 22 days ago when the stock gained 5.2% on the news that the company reported strong operating data for April 2026, prompting a positive review from Deutsche Bank.
Robinhood announced a 12% monthly increase in total platform assets to $345 billion and a rise in funded customers to 27.6 million. Net deposits for the month reached $6.0 billion, indicating healthy customer engagement.
Following the data release, Deutsche Bank reiterated its "Buy" rating and an $86 price target on the stock, noting that solid equities and options volumes offset weaker crypto trading. This performance suggested Robinhood is becoming less dependent on the more volatile crypto market. Adding to the positive sentiment, it was also disclosed that former President Donald Trump had recently purchased shares in the company.
Robinhood is down 28.5% since the beginning of the year, and at $82.33 per share, it is trading 46% below its 52-week high of $152.46 from October 2025. Investors who bought $1,000 worth of Robinhood’s shares at the IPO in July 2021 would now be looking at an investment worth $2,364.
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