Robinhood Markets, Inc. (HOOD) closed at $73.84 in the latest trading session, marking a -1.39% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.38%. Meanwhile, the Dow experienced a rise of 0.24%, and the technology-dominated Nasdaq saw an increase of 0.24%. Shares of the company have appreciated by 21.97% over the course of the past month, outperforming the Finance sector's gain of 2.88%, and the S&P 500's gain of 6.6%.The upcoming earnings release of Robinhood Mar ...

Core Insights - Robinhood Markets, Inc. (HOOD) reported significant year-over-year increases in Daily Average Revenue Trades (DARTs) for equity, options, and crypto in May 2025, indicating strong operational performance and market demand [1][8] - The company is actively diversifying its product offerings to enhance its market share and attract more clients, reflecting its strategic focus on becoming a leader in the active trader market [2][3] Group 1: Operational Performance - Equity DARTs in May 2025 reached 2.3 million, a 15% increase from the previous year [1] - Options DARTs rose to 1.2 million, marking a 50% year-over-year growth [1] - Crypto DARTs increased by 66.7% from the prior year quarter to 0.5 million [1] Group 2: Product Innovations - Robinhood has launched several new initiatives, including Robinhood Legend in the U.K. and Robinhood Strategies, Banking, and Cortex to enhance wealth management offerings [3][4] - The company introduced options trading in the U.K. in February 2025 and launched Futures in January 2025 [4] - The rapid product innovation through vertical integration is expected to expand the client base and improve transaction-based revenues, which have seen a compound annual growth rate (CAGR) of 36.7% over the last five years [5] Group 3: Competitive Landscape - Key competitors like Interactive Brokers and TradeWeb Markets Inc. are also enhancing their product offerings to challenge Robinhood's market position [6][9] - Interactive Brokers reported a rise in DARTs in May 2025 and has extended trading hours for Forecast Contracts [9] Group 4: Financial Performance and Projections - HOOD shares have surged 101% year-to-date, significantly outperforming the industry growth of 9.4% [8][10] - Earnings projections for 2025 and 2026 indicate growth rates of 12.8% and 21.3%, respectively, with upward revisions in estimates over the past week [12]

Core Viewpoint - Robinhood Markets (NASDAQ:HOOD) has experienced a surge of over 25% in the past month due to speculation regarding its potential inclusion in the S&P 500 index, but it was not added in the latest quarterly rebalance, raising questions about its current valuation at $72 and whether it remains a good investment [2][3] Valuation Analysis - The current valuation of Robinhood is considered too high despite minimal fundamental concerns, with a price-to-sales (P/S) ratio of 19.9 compared to 3.0 for the S&P 500, a price-to-free cash flow (P/FCF) ratio of 58.6 versus 20.5 for the S&P 500, and a price-to-earnings (P/E) ratio of 40.9 against 26.4 for the benchmark [8][11] - Robinhood's revenues have grown significantly, with a 59.6% increase from $2.0 billion to $3.3 billion in the last 12 months, and quarterly revenues rising 50.0% to $927 million from $618 million a year ago [8][11] Financial Performance - Robinhood's operating income over the last four quarters was $1.3 billion, resulting in a high operating margin of 39.0%, and a net income of $1.6 billion, indicating a net income margin of 48.8% [14] - The company has a strong balance sheet, with a debt figure of $9.1 billion and a market capitalization of $64 billion, leading to a low debt-to-equity ratio of 14.0% [14] Growth and Profitability - Robinhood has demonstrated extremely strong growth, with an average revenue growth rate of 30.0% over the last three years, significantly outpacing the S&P 500's 5.5% [8][11] - Profit margins are considerably higher than most companies in the Trefis coverage universe, showcasing robust profitability [7][14] Downturn Resilience - HOOD stock has shown extremely weak resilience during downturns, having fallen 90.2% from its peak in August 2021 to June 2022, compared to a 25.4% decline for the S&P 500 [15] - Despite recovering to its pre-crisis peak by June 2025, the stock's performance during downturns raises concerns about its stability [10][15]

Core Insights - Robinhood Markets, Inc. reported significant growth in key metrics for May 2025, including a 10% increase in total platform assets and a 7% year-over-year growth in funded customers [1][3]. Customer Metrics - Funded customers reached 25.9 million, an increase of approximately 5 thousand from April 2025 and up 7% from May 2024 [2][3]. - The growth in funded customers was impacted by the required escheatment of about 100 thousand low-balance accounts [3]. Asset Metrics - Total platform assets were $255.3 billion, reflecting a 10% increase from April 2025 and an 89% increase year-over-year [2][3]. - Net deposits for May were $3.5 billion, with an annualized growth rate of 18% compared to April 2025 [3]. Trading Metrics - Equity notional trading volumes were $180.5 billion, up 14% from April 2025 and up 108% year-over-year [2][3]. - Options contracts traded totaled 179.8 million, a 7% increase from April 2025 and a 36% increase year-over-year [2][3]. - Crypto notional trading volumes reached $11.7 billion, up 36% from April 2025 and up 65% year-over-year [2][3]. Margin and Cash Sweep Metrics - Margin balances at the end of May were $9.0 billion, a 7% increase from April 2025 and a 100% increase year-over-year [2][3]. - Total cash sweep balances were $30.8 billion, reflecting a 7% increase from April 2025 and a 52% increase year-over-year [2][3]. Revenue Metrics - Total securities lending revenue in May was $33 million, up 32% from April 2025 and up 43% year-over-year [3].

Core Insights - Robinhood Markets Inc. has successfully disrupted the financial services industry by targeting young investors with a commission-free trading model, achieving nearly $3 billion in revenue for 2024 [2][4]. Group 1: Business Model and Revenue - The company offers commission-free stock trading, generating revenue through Payment for Order Flow (PFOF), margin, and securities lending [2]. - Robinhood has seen consistent sales growth since 2022, with full-year revenue reaching nearly $3 billion in 2024 [2]. Group 2: Innovations and New Offerings - The "Invest America" plan, announced by Vlad Tenev and other CEOs, aims to fund $1,000 accounts for every child born in America, which could significantly benefit Robinhood due to its focus on younger demographics [4][6]. - The introduction of the "Gold Card" in March 2024 has created a massive waiting list, offering 3% cash back on all purchases and 5% back on travel purchases [7]. - Robinhood is expanding its ecosystem by adding cryptocurrency investments and betting markets, similar to the approach taken by companies like Apple [8]. Group 3: Market Position and Future Outlook - Through innovative offerings like commission-free trading, the "Invest America" initiative, the Gold Card, and the addition of crypto and betting markets, Robinhood is positioning itself as a major player in the competitive fintech space [9].

Core Insights - Robinhood Markets (HOOD) was not included in the S&P 500 index, contrary to expectations, leading to a nearly 8% drop in stock price during intra-day trading [1] - Despite this setback, HOOD shares have surged 97% year-to-date, driven by product expansion, acquisitions, and favorable developments in the cryptocurrency sector [2][8] - Robinhood's market capitalization stands at $66 billion, significantly above the S&P 500's eligibility threshold of $20.5 billion, but other factors such as governance and liquidity are also considered for inclusion [3] Market Impact - Inclusion in the S&P 500 is crucial as it typically results in increased demand from index funds and passive investors, potentially boosting stock price and liquidity [4] - The recent exclusion may have impacted investor sentiment, as HOOD had previously experienced a six-day winning streak, reaching all-time highs [1][8] Competitive Landscape - Robinhood's competitor, Coinbase Global (COIN), was added to the S&P 500 in May, which may have raised expectations for HOOD's inclusion [5] - Another competitor, Interactive Brokers (IBKR), also faced a decline in stock price following the announcement of no changes to the S&P 500 index [6] Valuation Metrics - HOOD shares are currently trading at a forward price-to-earnings (P/E) ratio of 55.04X, significantly higher than the industry average of 13.80X, indicating high investor expectations [8][9] - The Zacks Consensus Estimate projects earnings growth of 11.9% for 2025 and 20.5% for 2026, with recent estimates remaining stable or slightly increasing [10][11]

Robinhood's (NASDAQ:HOOD) competitive edge - the real moat that makes it hard to disrupt - sits at the intersection of speed, design, engagement, and integration. It's not just about offering free trades or a sleek mobile app. What sets Robinhood apart is how it's reimagined the financial services ...

Robinhood Markets TodayHOODRobinhood Markets$73.40 -1.48 (-1.98%) 52-Week Range$13.98▼$77.80P/E Ratio46.75Price Target$56.17Add to WatchlistShares of Robinhood Markets Inc. NASDAQ: HOOD are down more than 5% after the stock was denied entry into the S&P 500 index. The stock had rallied more than 30% in the month leading up to the decision on hopes (and likely expectations) that HOOD stock would be added to the index as it rebalanced. The options chain for Robinhood showed bullish sentiment with a high conc ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

HOOD remains one of the best stocks on Wall Street in the last 12 monthsRobinhood Markets Inc (NASDAQ:HOOD) stock is down 6.5% to trade at $69.95 today, after S&P Dow Jones Indices announced no new inclusions to the benchmark S&P 500 Index (SPX). The fintech company, along with AppLovin (APP), also lower out of the gate today, were both hoping to get the nod given their recent performance on the charts.This is poised to be HOOD's worst single-session decline since March 26, but make no mistake; the stock ha ...