Is Robinhood Stock a Buy Now?

Core Viewpoint - Robinhood Markets has undergone a significant turnaround, capturing investor interest and becoming a strong player in the financial sector after facing scrutiny for its business model and involvement in the 2021 meme stock phenomenon [1][2]. Group 1: Business Growth and Strategy - Robinhood is experiencing rapid customer and asset growth, with platform assets more than doubling from $102.6 billion to $255 billion since the end of 2023 [5]. - The company has introduced various services targeting its young customer base, including wealth management, advisory services, and retirement accounts with matching contributions [5][8]. - The launch of Robinhood Legend, a new browser-based trading platform, aims to attract active traders by enhancing the trading experience [4]. Group 2: Market Position and Acquisitions - Robinhood has made strategic acquisitions, including the $300 million purchase of TradePMR, to strengthen its position in professional advisory services and wealth management [8]. - The company has expanded its presence in the cryptocurrency space by acquiring Bitstamp, enhancing its offerings in the EU and UK markets [9]. Group 3: Innovation and Future Outlook - Robinhood is exploring tokenization of traditional financial assets, allowing retail investors indirect exposure to private markets through tokens linked to companies like OpenAI and SpaceX [10][11]. - The stock has surged by 334% over the past year and 173% year-to-date in 2025, leading to a high valuation with a price-to-sales ratio of 28.7 [12]. Group 4: Financial Projections - The company anticipates higher operating expenses for the year, estimating adjusted operating expenses between $2.085 billion and $2.185 billion, which includes costs related to the TradePMR acquisition [14][15].