Robinhood Stock Is Up 1,500% in Just 3 Years. Here's Why It's Still a Good Buy Heading Into 2026.

Core Viewpoint - Robinhood's strong results and growth prospects make it a compelling long-term investment despite its high valuation [1][12] Company Performance - Robinhood's stock has increased by 1,500% since the beginning of 2023, marking it as one of the best growth stocks in recent years [2] - In Q3, Robinhood's revenue doubled to just under $1.3 billion, indicating robust growth [5] - The company has approximately 28 million investment accounts, providing a strong user base for future growth [10] Growth Opportunities - The prediction-markets business is an emerging growth area for Robinhood, with 2.3 billion event contracts traded in Q3 and 2.5 billion in October alone [5] - New business lines, including prediction markets and the Bitstamp cryptocurrency exchange, are generating around $100 million in annualized revenue [5] - There is potential for Robinhood's growth rate to remain above 50% in future quarters, justifying its high valuation [7] Valuation Metrics - Robinhood's current price-to-earnings ratio is 55, which may seem high but could be justified by its growth prospects [7] - The stock is currently priced at $135.68, with a market capitalization of $122 billion [8]