Down 30% From Its High, Is Robinhood's Stock a Buy?

Core Viewpoint - Robinhood Markets has experienced significant stock growth, rising over 500% since 2022, outperforming the S&P 500's 46% return during the same period [1] Group 1: Stock Performance - Recently, some investors have started cashing out due to Robinhood's inflated valuation, leading to a 23% decline in stock price over the past three months and a 30% drop from its 52-week high of $153.86 [2] - The stock is currently trading at levels similar to those in September, but it still carries a high price-to-earnings (P/E) multiple of around 45, compared to the S&P 500 average of 27 [6] Group 2: Financial Growth - In the most recent quarter ending September 30, 2025, Robinhood doubled its sales and tripled its profits from $150 million to $556 million year over year, indicating strong revenue growth [4] - The company is on a positive trajectory with improving margins and is expanding its prediction markets business to attract more customers [5] Group 3: Investment Outlook - Analysts have set a consensus price target of $136.62 for Robinhood, suggesting a potential near-term upside of around 27% for current investors [7] - Given its strong business fundamentals and growth prospects, Robinhood may justify its high premium, making it an attractive long-term investment opportunity for those willing to buy on weakness [8]