Here's Why Robinhood Stock Is a Buy Before Nov. 5

Core Insights - Robinhood Markets is experiencing significant growth, with a 10% increase in funded accounts and a remarkable 112% rise in total platform assets year-over-year [2][5] - The company's stock has surged 413% over the past year, indicating strong investor interest and performance [2][4] - Robinhood is set to report its third-quarter earnings on November 5, with expectations of a potential earnings beat that could further elevate the stock price [4][13] Growth Metrics - Funded accounts have reached 26.7 million, while total platform assets stand at $304 billion [5] - Trading volume for equities and cryptocurrencies has increased by over 100% year-over-year, and options contracts have risen by 33% [5][6] - Key metrics for August 2025 show equities at $199.2 billion, options at $196 million, and cryptocurrencies at $13.7 billion, reflecting substantial growth [6] Financial Performance - In the second quarter, Robinhood reported revenue of $989 million, a 45% increase from the previous year, and net income of $386 million, up 105% [7] - The average revenue per user increased by 34% to $151, indicating improved monetization [7] New Initiatives - Robinhood has launched a tokenization program, making over 200 stocks available as tradeable digital tokens, which management views as a significant profit driver [8] - The company also introduced prediction markets, allowing users to bet on future events, generating nearly $1 million in revenue from approximately 100 million contracts in Q2 [10][11] Market Expectations - Analysts have consistently underestimated Robinhood's earnings, with the company beating expectations in the last three quarters [13][14] - The average EPS estimate for Q3 is $0.52, which has been rising over the past 90 days, supported by increased trading volume and platform assets [14] Investment Outlook - Given the strong momentum and recent performance, Robinhood stock is considered a buy ahead of the earnings report, with expectations of reaching new highs by year-end [15]