Robinhood Markets (NASDAQ:HOOD) announced a $1.5 billion share buyback program Tuesday, sending the stock up 4% to $71.66 in premarket trading after closing down 4.70% at $69.08—a fresh multi-month low.

The Buyback Details

The buyback authorization has no expiration date and will execute over approximately three years. 

The program comes after Robinhood shares dropped 39% since the start of 2026 following a year when the stock more than tripled.

“This authorization reflects the confidence of our management team and board in our ability to continue delivering innovative products for customers and creating value for shareholders while returning capital over time,” said CFO Shiv Verma.

Verma became CFO in February as Robinhood shares dropped amid a rout in cryptocurrency markets. The timing gives the Menlo Park, California-based firm a buying opportunity with shares trading near multi-month lows.

The Clarity Act Cascade

The Tuesday selloff stemmed from reports that the Clarity Act would prohibit crypto companies like Coinbase (NASDAQ:COIN) from offering yield on stablecoins held on their platforms. 

Circle Internet Group (NYSE:CRCL) crashed 20.1% to $101.17, while Coinbase fell 10.5%. 

Trading volume for Circle reached 289% above its three-month average as investors digested the regulatory shock. 

The legislation represents tighter limits on stablecoin yields than the market expected.

The Technical Setup

Tuesday’s close at $69.08 essentially tagged the lower descending channel boundary near $68-$69, precisely where a bounce would be expected technically. 

The premarket recovery to $71.66 aligns with this channel boundary reaction.

However, the premarket bounce doesn’t reach the 20 EMA at $72.11, meaning bulls aren’t yet challenging anything meaningful structurally. 

Robinhood hasn’t traded above its 50 EMA since December.

RSI sits at 34.28, approaching but not yet at oversold extremes. The signal line at 37.78 is crossing below the RSI line—a bearish signal. 

Reclaiming $72.11 on a 2-hour close is the minimum requirement to suggest any momentum shift. The real reversal signal comes only with a break above the descending upper channel resistance, currently near $75-$76.

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