Is Now the Time to Buy Robinhood Stock?

Group 1: Company Overview - Robinhood Markets is a discount broker that has expanded its services to include stock, options, cryptocurrency trading, banking services, prediction markets, and retirement investing, with assets under custody rising 88% year over year to $193 billion in Q4 2024 [2] - The average customer account size at Robinhood is $7,700, indicating that it attracts relatively new investors [3] Group 2: Financial Performance - In 2024, Robinhood's revenue increased by 58%, and earnings per share rose to $1.56 from a loss of $0.61 in 2023, showcasing strong business performance [4] - The company's price-to-earnings ratio is approximately 28.5, compared to 22.5 for Charles Schwab, reflecting a premium valuation likely due to its growth [8] Group 3: Market Risks - Robinhood has not yet experienced a significant market downturn as a public company, raising concerns about its resilience during adverse market conditions [5] - The stock has lost 30% of its value in 2025, primarily during a market correction, while Schwab's stock has only decreased by less than 5% [10] - The average account size suggests that Robinhood's investors are younger and less experienced, which could lead to higher exit rates during a bear market [11][12]