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Robinhood Markets, Inc. (HOOD) Stock

Robinhood Markets, Inc. Stock Details, Movements and Public Alerts

Robinhood Markets (HOOD): The Meme Stock Broker That Built a $4.5 Billion Financial SuperApp

Vlad Tenev has quietly transformed Robinhood from a meme-stock controversy into a legitimate financial services company. The 2025 numbers make the case: $4.5 billion in total net revenue (up 52%), $1.9 billion in GAAP net income, and $333 billion in assets under custody (up 119%). The Robinhood Gold Card grew to 600,000 customers with $10 billion in annualized spend, and prediction markets became the company's fastest-growing business ever, reaching a $300 million revenue run rate in its first full year. Tenev's strategy of vertical integration, from clearing to credit cards to crypto custody, creates a financial stack that traditional brokerages and neobanks have not replicated. The company is targeting over 1 million Gold Card holders by end of 2026.

52-Week Range

$153.86 - $29.66

-51.12% from high · +153.54% from low

Avg Daily Volume

27,563,799

20-day average

100-day avg: 28,137,115

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

36.74

Above market average

Forward P/E

27.40

Earnings expected to grow

Price to Book

7.43

EPS (TTM)

$2.05

Price to Sales

15.16

Beta

2.48

More volatile than market

Q:How is HOOD valued relative to its earnings and growth?
Robinhood Markets, Inc. trades at a P/E ratio of 36.74, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 27.40 is lower than the current P/E, indicating analysts expect earnings to grow over the next year.
Q:What is HOOD's risk profile compared to the market?
With a beta of 2.48, Robinhood Markets, Inc. is significantly more volatile than the market. For every 10% market move, this stock tends to move 25% in the same direction. Higher beta stocks offer greater potential returns but with increased risk. The price-to-book ratio of 7.43 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

42.10%

Operating Margin

46.53%

Return on Equity

21.99%

Return on Assets

5.85%

Revenue Growth (YoY)

26.50%

Earnings Growth (YoY)

-34.50%

Q:How profitable and efficient is HOOD's business model?
Robinhood Markets, Inc. achieves a profit margin of 42.10%, meaning it retains $42.10 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 46.53% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 21.99% and ROA at 5.85%, the company generates strong returns on invested capital.
Q:What are HOOD's recent growth trends?
Robinhood Markets, Inc.'s revenue grew by 26.50% year-over-year, representing robust expansion that significantly outpaces typical market growth rates. This strong top-line performance suggests the company is successfully capturing market share or benefiting from favorable industry trends. Earnings decreased by 34.50% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against Capital Markets industry averages for proper context.

Company Size & Market

Market Cap

$67.8B

Revenue (TTM)

$4.47B

Revenue/Share (TTM)

$5.03

Shares Outstanding

790.05M

Book Value/Share

$10.14

Asset Type

EQUITY

Q:What is HOOD's market capitalization and position?
Robinhood Markets, Inc. has a market capitalization of $67.8B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 790.05M shares outstanding, the company's ownership is relatively concentrated. As a participant in the Capital Markets industry, it competes with other firms in this sector.
Q:How does HOOD's price compare to its book value?
Robinhood Markets, Inc.'s book value per share is $10.14, while the current stock price is $75.20, resulting in a price-to-book (P/B) ratio of 7.42. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As EQUITY, this represents a specific type of security.

Analyst Ratings

Analyst Target Price

$124.62

65.72% upside potential

Analyst Recommendations

Strong Buy

4

Buy

13

Hold

5

Sell

2

Strong Sell

0

Q:How reliable are analyst predictions for HOOD?
24 analysts cover HOOD with 71% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $124.62 implies 65.7% upside, but targets are often adjusted to follow price moves rather than predict them.
Q:What is the Wall Street consensus on HOOD?
Current analyst recommendations:4 Strong Buy, 13 Buy, 5 Hold, 2 Sell, 0The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Mar 17, 2026, 02:17 AM

Technical Indicators

RSI (14-day)

41.79

Neutral

50-Day Moving Average

$91.45

-17.77% below MA-50

200-Day Moving Average

$107.71

-30.18% below MA-200

MACD Line

-3.64

MACD Signal

-4.49

MACD Histogram

0.85

Bullish

Q:What does HOOD's RSI value tell investors?
The RSI (Relative Strength Index) for HOOD is currently 41.79, indicating the stock is in neutral territory (40-60 range). Neither buyers nor sellers have clear control, suggesting consolidation or balanced market forces. Combined with the price being below the 50-day moving average, this confirms bearish conditions.
Q:How should traders interpret HOOD's MACD and moving average crossovers?
MACD analysis shows the MACD line at -3.64 above the signal line at -4.49, with histogram at 0.85. This bullish crossover suggests upward momentum is building. The 50-day MA ($91.45) is below the 200-day MA ($107.71), forming a death cross pattern that often warns of extended weakness. Price is currently below both MAs, confirming weakness.

Indicators last updated: Mar 17, 2026, 12:47 AM

Active Alerts

Alert Condition
Forward P/E falls below
Threshold
22.7 x
Created
Mar 16, 2026, 04:35 PM
Alert Condition
Price decreases by
Threshold
10%
Created
Feb 26, 2026, 05:10 PM
Alert Condition
Price falls below
Threshold
$70.00
Created
Feb 26, 2026, 03:13 PM
Alert Condition
RSI Threshold Cross
Threshold
30
Created
Feb 23, 2026, 05:04 PM
Alert Condition
Forward P/E falls below
Threshold
23.18 x
Created
Feb 17, 2026, 05:02 PM
Alert Condition
Price rises above
Threshold
$86.50
Created
Feb 10, 2026, 11:00 PM
Alert Condition
RSI Threshold Cross
Threshold
30
Created
Feb 5, 2026, 05:12 PM
Alert Condition
Earnings Announcement
Threshold
3 days
Created
Feb 2, 2026, 05:16 PM
Alert Condition
Price rises above
Threshold
$130.00
Created
Dec 24, 2025, 11:49 AM
Alert Condition
MA Breakout (Bullish)
Threshold
50 days
Created
Dec 24, 2025, 11:49 AM

Robinhood Markets (HOOD) Stock Analysis 2025: Complete Investment Guide

From Meme Controversy to Financial Platform

The GameStop trading halt in January 2021 nearly destroyed Robinhood's reputation. Three years later, the company is posting $1.9 billion in annual net income and growing revenue 52% year-over-year. CEO Vlad Tenev survived the crisis, took the company public, and then rebuilt it into something more durable than a commission-free stock trading app.

The transformation shows in the numbers. Assets under custody reached $333 billion, more than doubling in a year. Revenue diversification now spans equities, options, crypto, cash management, the Gold Card, and prediction markets. Tenev's stated goal is vertical integration: owning every component of the financial stack so Robinhood captures economics at every layer of a customer's financial life.

Business Model and Competitive Position

Robinhood generates transaction-based revenue from payment for order flow (equities and options), crypto trading spreads, and prediction market commissions. Net interest income comes from securities lending, margin balances, and cash sweep deposits. Subscription revenue comes from Robinhood Gold ($5/month or $50/year) which unlocks higher APY, research, and the Gold Card.

The competitive edge is product velocity within a single app. Robinhood can launch new financial products (prediction markets, the Gold Card, retirement accounts, crypto staking) faster than traditional brokers because it owns its technology stack end-to-end. Charles Schwab and Fidelity have larger AUC but slower product innovation cycles. SoFi competes on breadth but lacks Robinhood's trading volume and younger demographic lock-in.

Financial Performance

  • •Revenue: $4.5B FY2025 (+52% YoY) across diversified transaction, interest, and subscription streams
  • •Net Income: $1.9B GAAP, marking second consecutive year of profitability
  • •AUC: $333B record (+119% YoY), reflecting both market appreciation and net deposits
  • •Gold Card: 600K customers (5x growth), $10B annualized spend
  • •Prediction Markets: $12B+ contracts traded, $300M revenue run rate in first full year
  • •Crypto: Q4 crypto revenue $221M (down 38% QoQ due to market volatility)

Growth Catalysts

  • •Gold Card Expansion: Targeting 1M+ cardholders by end 2026; 3% unlimited cashback drives customer acquisition and engagement
  • •Prediction Markets: Fastest-growing product in company history; expanding event categories beyond politics to sports, entertainment, and economics
  • •Retirement Accounts: IRA with 1% match on contributions expands total addressable market into long-term savings
  • •International Expansion: UK launch and European expansion open new customer pools for trading and crypto
  • •Wealth Management: Advisory services and managed portfolios for Gold subscribers moving upmarket toward higher-value customers

Risks and Challenges

  • •Regulatory Risk: Payment for order flow faces ongoing SEC scrutiny; prediction markets may attract CFTC regulation
  • •Crypto Volatility: Crypto revenue dropped 38% in Q4 2025; the segment remains highly dependent on retail trading sentiment and crypto prices
  • •Market Sensitivity: Revenue correlates with retail trading activity, which surges in bull markets and collapses in bear markets
  • •Competition from Incumbents: Charles Schwab ($9T+ AUC), Fidelity, and Interactive Brokers have deeper resources and established trust with older demographics
  • •Reputation Risk: The 2021 trading halt still affects brand perception; any similar incident could accelerate customer attrition

Competitive Landscape

In brokerage, Robinhood competes with Charles Schwab, Fidelity, E*Trade (Morgan Stanley), and Interactive Brokers. Robinhood's average customer is younger and smaller-balance than competitors, but the Gold Card and retirement products are designed to grow wallet share as these customers age and accumulate wealth. In crypto, Coinbase is the primary competitor for U.S. retail trading.

Prediction markets represent a greenfield opportunity. Kalshi is the main regulated competitor, but Robinhood's existing 24+ million funded accounts give it a distribution advantage that standalone prediction platforms cannot match. The $300 million revenue run rate in the first year suggests strong product-market fit among Robinhood's user base.

Who Is This Stock Suitable For?

Perfect For

  • ✓Growth investors seeking a high-growth fintech with proven profitability
  • ✓Those bullish on the continued democratization of financial services for younger demographics
  • ✓Investors wanting crypto and prediction market exposure through a regulated platform
  • ✓Momentum-oriented portfolios (52% revenue growth, 119% AUC growth)

Less Suitable For

  • ✗Conservative investors uncomfortable with regulatory uncertainty around PFOF and prediction markets
  • ✗Income seekers (no dividend; capital returned through buybacks)
  • ✗Investors who require stable, non-cyclical revenue (trading volumes are inherently volatile)
  • ✗Those concerned about brand risk from the 2021 GameStop controversy

Investment Thesis

Robinhood has outgrown its meme-stock origins. $4.5 billion in revenue, $1.9 billion in net income, and 52% growth rates are the metrics of a company that has found durable product-market fit across multiple financial services categories. Vlad Tenev's vertical integration strategy creates operating leverage: each new product (Gold Card, prediction markets, retirement) adds revenue on top of existing customer acquisition costs.

The core risk is revenue cyclicality. Robinhood still depends on retail trading volumes that can swing dramatically with market conditions. The prediction markets and Gold Card help diversify, but a prolonged bear market would test how much of the 2025 growth is structural versus cyclical. At current valuations, the stock prices in continued strong execution, leaving limited room for missed quarters.

Conclusion

Robinhood is a strong growth stock for investors who believe retail financial services are permanently shifting toward mobile-first, vertically integrated platforms. The cyclicality risk demands appropriate position sizing. Best bought on pullbacks during market volatility rather than at peak sentiment.
Bull Case
$105 (40% upside) - Prediction markets scale, Gold Card hits 1M+, international expansion gains traction
Base Case
$82 (9% upside) - 25-30% revenue growth, steady margin expansion, trading volumes normalize
Bear Case
$42 (44% downside) - Bear market crushes trading volumes, PFOF regulation tightens, crypto winter returns

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