Payment for order flow (PFOF)
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Should You Buy Robinhood (HOOD) Stock Before February?
Yahoo Finance· 2025-12-26 22:00
Key Points Robinhood’s stock has soared over the past year. The warming market is driving more investors back to its platform. It still appears reasonably valued in relation to its growth potential. 10 stocks we like better than Robinhood Markets › Robinhood's (NASDAQ: HOOD) stock nearly tripled over the past 12 months. The online brokerage dazzled investors with its robust revenue growth, rising margins, and soaring profits. Does Robinhood's stock still have more room to run before its next earn ...
2 Fintech Growth Stocks to Buy With $200 and Hold Forever
The Motley Fool· 2025-05-14 08:42
Group 1: Robinhood Markets - Robinhood is rapidly adding customers, particularly among younger demographics, and aims to democratize finance through commission-free trading and a user-friendly interface [3] - The company has faced scrutiny over its payment for order flow (PFOF) model, which allows it to receive compensation from market makers for directing trades, but defends it as essential for offering commission-free services [4] - As of the end of Q1, Robinhood had 25.8 million funded customers and over $221 billion in assets, representing a 70% increase year-over-year and a 16% increase from the previous quarter [6] - The platform attracts customers with high-yield accounts, offering a 4% annual percentage yield (APY) for Robinhood Gold members, which also provides a steady revenue stream for the company [8] - Robinhood is enhancing its offerings by introducing retirement accounts and prediction markets, which have gained popularity [9] Group 2: Nu Holdings - Nu Holdings, the parent company of Nubank, is rapidly expanding across Latin America, starting in Brazil and challenging the traditional banking oligopoly [10] - The customer base in Brazil has grown to 101.8 million, representing approximately 58% of the adult population, with plans to expand into Mexico and Colombia [11] - In Colombia, Nu's customer count has tripled to nearly 2.5 million, while in Mexico, it has doubled to 10 million, following regulatory approval to transition into a full-service bank [12] - Nu has been operating as a Popular Financial Society (SOFIPO), which limits its ability to offer a wider range of products and services, but is now positioned for further growth with its new banking status [13] - The company has consistently posted positive earnings and is expanding revenue as it grows beyond Brazil [14]