Robinhood Stock Was Red Hot in 2025. Should You Keep Buying Shares in 2026?

Core Insights - Robinhood Markets has emerged as a standout performer in 2025, with its stock price significantly increasing after a period of volatility following its 2021 IPO [1][5] - The company has achieved a remarkable 215% year-to-date gain, outperforming the broader S&P 500 index, which has seen a 17.48% increase [2][5] Company Overview - Robinhood, headquartered in Menlo Park, California, is known for its mobile-first brokerage platform that offers commission-free trading of various financial instruments to retail investors [4] - The company has grown into a large-cap stock with a market capitalization of approximately $106.2 billion [4] Stock Performance - The stock reached a peak price of $153.86 on October 6, 2025, and has a total return of 200.21% over the past 52 weeks, indicating strong upward momentum [5] - Despite being down 31.2% from its 52-week high, Robinhood remains a compelling story in the financial sector [6] Financial Results - In Q3 2025, Robinhood reported record total net revenues of $1.3 billion, marking a 100% year-over-year increase [8] - The revenue growth was driven by diverse sources, including transaction-based revenue, net interest income, and subscription services [8] Market Position - Robinhood's stock is currently trading at 60.48 times forward earnings, which is higher than the sector median, indicating strong investor interest despite potential market uncertainties [7][3]