Truist's David Smith on the bull case for Robinhood

Market Trends & Risk Factors - Increased risk-seeking and volatility from retail investors are evident in cryptocurrency and options investments [2] - A potential risk exists if consumers culturally pull back on risk or if regulatory issues arise [1] - Overall trading volumes have dipped slightly with the decrease in prices of growth stocks or cryptocurrency, but average trades and activity per day have not declined as much [3] Robinhood's Business & Financial Performance - Robinhood is well-positioned to offer products to investors due to its mix of products and trading interface [2] - Over time, the correlation between Robinhood's stock and cryptocurrencies should decrease [4][5] - Crypto trading revenues should decline as a percentage of Robinhood's revenue growth as prediction markets grow and the stock becomes more geared towards net interest revenues and lending [5] - Robinhood has attractive operating leverage and incremental margins due to a high fixed cost base [6] - Increased revenue from new users and products should significantly improve Robinhood's bottom line [7]