-1.98%
25.63%
116.73%
190.55%
391.95%
267.14%
49.20%
AI Spotlight on HOOD
Company Description
Robinhood Markets, Inc.operates financial services platform in the United States.Its platform allows users to invest in stocks, exchange-traded funds (ETFs), options, gold, and cryptocurrencies.
The company also offers various learning and education solutions comprise Snacks, a digest of business news stories; Learn, which is a collection of approximately articles, including guides, feature tutorials, and financial dictionary; Newsfeeds that offer access to free premium news from various sites, such as Barron's, Reuters, and The Wall Street Journal; lists and alerts, which allow users to create custom watchlists and alerts to monitor securities, ETFs, and cryptocurrencies, as well as cash management services; and offers First trade recommendations to all new customers who have yet to place a trade.Robinhood Markets, Inc.was incorporated in 2013 and is headquartered in Menlo Park, California.
Market Data
| Last Price | 51.95 |
| Change Percentage | -1.98% |
| Open | 53.25 |
| Previous Close | 53 |
| Market Cap ( Millions) | 45923 |
| Volume | 14036356 |
| Year High | 53.51 |
| Year Low | 10.51 |
| M A 50 | 41.38 |
| M A 200 | 26.83 |
Financial Ratios
| FCF Yield | 4.92% |
| Dividend Yield | 0.00% |
| ROE | 7.52% |
| Debt / Equity | 101.36% |
| Net Debt / EBIDTA | 434.68% |
| Price To Book | 6.37 |
| Price Earnings Ratio | 87.48 |
| Price To FCF | 20.34 |
| Price To sales | 18.85 |
| EV / EBITDA | 78.42 |
News
- 06:02 - Palantir Technologies Plunges Overnight On Robinhood: Trump Tariff Impact Or Investor Jitters?
- Jan -31 - 3 Stocks That Could Double Your Money in 2025
- Jan -30 - Are Finance Stocks Lagging Robinhood Markets (HOOD) This Year?
- Jan -30 - Use A Simple Option Trade To Profit From Robinhood's Earnings Report
- Jan -29 - HOOD Falls From All-Time High on DeepSeek Turbulence: Buy the Dip?
- Jan -29 - Bitcoin Rebounds Post DeekSeek Disruption: Buy 3 Crypto-Centric Stocks
- Jan -29 - CME Group Futures to Launch on Robinhood, Bringing New Trading Opportunities to Retail Investors
- Jan -29 - Robinhood Joins SS&C's RolloverCentral® as IRA Provider
- Jan -29 - Robinhood: 3 Reasons It Could Be Time To Trim (Rating Downgrade)
- Jan -29 - Top Analysts' Picks for 2025: 3 of Morgan Stanley's Favorites
- Jan -29 - Robinhood CEO: An investing revolution is coming, and US isn't ready
- Jan -28 - Robinhood CEO predicts an investing revolution is on the horizon: 'A big problem' for US
- Jan -26 - Prediction: 1 Soaring Cryptocurrency Stock Could Plunge by 50% (or More)
- Jan -23 - Stocks to watch: Robinhood, Emerson Electric and Home Depot
- Jan -23 - Prediction: Robinhood Will Beat the Market. Here's Why.
- Jan -22 - Tap Into Crypto Exposure with These 2 Stocks
- Jan -22 - Schwab's stock lagged rivals such as Robinhood last year. Here's why it could be a buy now.
- Jan -22 - The Zacks Analyst Blog Tesla, Coinbase, MicroStrategy and Robinhood Markets
- Jan -21 - Trump 2.0 Begins: Tesla & 3 More Stocks to Gain the Most
- Jan -21 - 4 Bitcoin-Centric Stocks to Gain From Trump's Return to White House
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Options
Expected Growth : 8 %
What the company do ?
Options from Robinhood Markets, Inc. allow investors to buy and sell call and put options on various underlying assets, providing flexibility and risk management strategies.
Why we expect these perspectives ?
Robinhood's 8% growth is driven by increasing adoption of commission-free trading, expansion into new products such as options and cryptocurrencies, and growing popularity among younger investors. Additionally, the company's user-friendly interface, low fees, and strategic partnerships contribute to its rapid growth.
Segment n°2 -> Interest on Corporate Cash and Investments
Expected Growth : 7 %
What the company do ?
Interest on Corporate Cash and Investments from Robinhood Markets, Inc. refers to the earnings generated from investing excess cash in low-risk instruments, such as commercial paper, treasury bills, and certificates of deposit.
Why we expect these perspectives ?
Robinhood's 7% growth in Interest on Corporate Cash and Investments is driven by increasing cash reserves, strategic investments in high-yield instruments, and a rising interest rate environment. Additionally, the company's growing user base and increasing cash holdings from brokerage accounts contribute to this growth.
Segment n°3 -> Margin Interest
Expected Growth : 10 %
What the company do ?
Margin interest is the interest charged by Robinhood on the borrowed amount when using margin trading, calculated daily and paid monthly.
Why we expect these perspectives ?
Robinhood's 10% margin interest growth is driven by increasing trading volumes, rising interest rates, and a growing customer base. The company's commission-free trading model and user-friendly interface attract more users, leading to higher margin balances and interest income. Additionally, the Federal Reserve's rate hikes boost interest income from cash and securities lending, contributing to the segment's growth.
Segment n°4 -> Interest on Segregated Cash and Cash Equivalents and Deposits
Expected Growth : 8 %
What the company do ?
Interest on Segregated Cash and Cash Equivalents and Deposits from Robinhood Markets, Inc. refers to the interest earned on cash and cash equivalents held in segregated accounts, such as brokerage accounts, and deposits held at Robinhood Markets, Inc.
Why we expect these perspectives ?
Robinhood's 8% growth in Interest on Segregated Cash and Cash Equivalents and Deposits is driven by increasing user base, rising brokerage accounts, and higher cash balances. Additionally, the company's expansion into new products, such as high-yield savings accounts, and its competitive interest rates also contribute to this growth.
Segment n°5 -> Other Revenues
Expected Growth : 6 %
What the company do ?
Other Revenues from Robinhood Markets, Inc. refers to non-trading revenue streams, including interest on uninvested cash, interchange fees, and miscellaneous income.
Why we expect these perspectives ?
Robinhood's Other Revenues growth is driven by increasing adoption of its cryptocurrency trading platform, expansion of its options trading business, and rising interest income from uninvested cash balances. Additionally, the company's growing user base and rising average revenue per user (ARPU) contribute to the growth.
Segment n°6 -> Cryptocurrencies
Expected Growth : 12 %
What the company do ?
Cryptocurrencies from Robinhood Markets, Inc. are digital or virtual currencies that use cryptography for security and are decentralized, allowing for peer-to-peer transactions without intermediaries.
Why we expect these perspectives ?
Robinhood's 12% growth in Cryptocurrencies is driven by increasing adoption, simplicity, and accessibility. Key drivers include: 1) rising mainstream acceptance, 2) commission-free trading, 3) user-friendly interface, 4) expanding cryptocurrency offerings, and 5) growing demand for diversification in investment portfolios.
Segment n°7 -> Cash Sweep, Net
Expected Growth : 9 %
What the company do ?
Cash Sweep, Net from Robinhood Markets, Inc. is a program that automatically sweeps uninvested cash into a high-yield interest-bearing account, earning interest on idle cash.
Why we expect these perspectives ?
Robinhood's Cash Sweep growth is driven by increasing adoption of its brokerage services, expansion of investment products, and rising interest rates. The 9% growth is also attributed to the company's strategic partnerships, user-friendly interface, and commission-free trading model, which attract and retain customers, resulting in higher cash balances and sweep revenue.
Segment n°8 -> Equities
Expected Growth : 11 %
What the company do ?
Equities from Robinhood Markets, Inc. refer to the publicly traded stocks available for investment on the Robinhood platform, offering users a range of stock options to buy and sell.
Why we expect these perspectives ?
Robinhood's 11% growth in equities is driven by increasing adoption of commission-free trading, expansion of options and ETF offerings, and growing popularity among millennials and Gen Z investors. Additionally, the company's user-friendly interface, low fees, and innovative products such as fractional shares and IPO access contribute to its rapid growth.
Segment n°9 -> Securities Lending, Net
Expected Growth : 8 %
What the company do ?
Securities Lending, Net from Robinhood Markets, Inc. refers to the revenue generated from lending securities to other market participants, net of borrowing costs.
Why we expect these perspectives ?
Robinhood's 8% growth in Securities Lending, Net is driven by increasing demand for margin trading, expansion of its customer base, and rising interest rates. Additionally, the company's commission-free trading model and user-friendly interface have attracted more users, leading to higher lending volumes and revenue. Furthermore, strategic partnerships and investments in technology have improved operational efficiency, contributing to the segment's growth.
Segment n°10 -> Other
Expected Growth : 7 %
What the company do ?
Other from Robinhood Markets, Inc. refers to the revenue generated from interest on securities borrowed and other miscellaneous sources.
Why we expect these perspectives ?
Robinhood's 'Other' segment, with 7% growth, is driven by increasing demand for its cryptocurrency trading services, expansion of its options trading business, and growing interest in its cash management products. Additionally, the company's investments in technology and infrastructure have improved scalability, enabling it to handle higher trading volumes and support its growing customer base.
Segment n°11 -> Interest Expenses Related to Credit Facilities
Expected Growth : 5 %
What the company do ?
Interest Expenses Related to Credit Facilities from Robinhood Markets, Inc. refers to the costs incurred by the company for borrowing funds through credit facilities, such as lines of credit or loans.
Why we expect these perspectives ?
Robinhood's 5% growth in Interest Expenses Related to Credit Facilities is driven by increasing customer base and trading activity, leading to higher margin lending and options trading. Additionally, rising interest rates and expansion of credit products, such as Robinhood Gold, contribute to the growth.
Segment n°12 -> Credit Card, Net
Expected Growth : 9 %
What the company do ?
Credit Card, Net from Robinhood Markets, Inc. is a cashback credit card with no annual fee, offering 3% cashback on Robinhood investments and 1% on other purchases.
Why we expect these perspectives ?
Robinhood's 9% growth in Net from Credit Card segment is driven by increasing adoption of cashback and rewards programs, rising online transactions, and growing demand for contactless payments. Additionally, the company's expansion into new markets, strategic partnerships, and investments in digital infrastructure have contributed to this growth.
Robinhood Markets, Inc. Products
| Product Range | What is it ? |
|---|---|
| Robinhood Trading App | A mobile-first brokerage platform that allows users to buy and sell stocks, ETFs, options, and cryptocurrencies with no commission fees. |
| Robinhood Options | A platform that allows users to trade options contracts with no commission fees. |
| Robinhood Crypto | A platform that allows users to buy and sell cryptocurrencies like Bitcoin and Ethereum with no commission fees. |
| Robinhood Gold | A premium membership program that offers extended trading hours, larger instant deposits, and Level II quotes. |
| Robinhood Snacks | A daily newsletter that provides market news, insights, and analysis. |
| Robinhood Learn | A platform that provides educational resources and tools to help investors learn about investing and personal finance. |
Robinhood Markets, Inc.'s Porter Forces
Threat Of Substitutes
Robinhood's commission-free trading model and user-friendly interface make it difficult for substitutes to emerge, reducing the threat of substitutes.
Bargaining Power Of Customers
While customers have some bargaining power due to the availability of alternative brokerages, Robinhood's low prices and user-friendly interface reduce the bargaining power of customers.
Bargaining Power Of Suppliers
Robinhood's suppliers, such as market makers and high-frequency trading firms, have limited bargaining power due to the company's scale and negotiating power.
Threat Of New Entrants
The threat of new entrants is high due to the low barriers to entry in the online brokerage industry, and the potential for new fintech companies to emerge and disrupt the market.
Intensity Of Rivalry
The online brokerage industry is highly competitive, with established players such as Fidelity, Charles Schwab, and E*TRADE, as well as new entrants, creating a high level of rivalry.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 43.52% |
| Debt Cost | 3.95% |
| Equity Weight | 56.48% |
| Equity Cost | 12.66% |
| WACC | 8.87% |
| Leverage | 77.05% |
Robinhood Markets, Inc. : Quality Control
Robinhood Markets, Inc. passed 2 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
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Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Toast
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HashiCorp
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Altair Engineering
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4
Robinhood Markets
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5
DigitalOcean
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1-Year Total Return ->
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