The Motley Foolยท2025-05-18 07:55Core Viewpoint - Financial stocks, particularly Robinhood, Nu Holdings, and Coinbase, are considered strong long-term investments despite recent volatility in the market due to rising interest rates and economic challenges [1][2]. Group 1: Robinhood - Robinhood has seen significant growth from 2021 to 2024, with year-end funded accounts increasing from 22.7 million to 25.2 million and assets under custody nearly doubling from $98 billion to $193 billion [4][5]. - The company's annual revenue rose from $1.82 billion to $2.95 billion during the same period, benefiting from a gamified approach to investing and commission-free trades [4]. - Analysts project a compound annual growth rate (CAGR) of 15% for revenue and 19% for adjusted EBITDA from 2024 to 2027, with an enterprise value of $57.3 billion [6][7]. Group 2: Nu Holdings - Nu Holdings, operating in Brazil, Mexico, and Colombia, has tripled its year-end customer base from 33.3 million to 114.2 million between 2021 and 2024, with an activity rate increasing from 76% to 83% [8][9]. - The company achieved a revenue CAGR of 89% during this period and turned profitable in 2023, with net income surging 91% in 2024 [8]. - Analysts expect Nu's revenue to grow at a CAGR of 32% and net income at a CAGR of 38% from 2024 to 2027, trading at 27 times this year's earnings [10]. Group 3: Coinbase - Coinbase, one of the largest cryptocurrency exchanges, saw its year-end assets on the platform grow from $278 billion in 2021 to $404 billion in 2024, despite a revenue decline from $7.8 billion to $6.6 billion during the same period [11][12]. - Analysts forecast a revenue CAGR of 6.5% to $7.9 billion by 2027, indicating a gradual stabilization of its volatile business [12]. - The company's adjusted EBITDA is expected to decrease from $3.35 billion in 2024 to $3.26 billion in 2027, while it continues to expand its platform with new features [13][14].