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Robinhood Stock (HOOD) Snubbed by S&P 500 Again—Will a $100 B Valuation Hold or Fold?
FX Empire· 2025-07-23 13:10
EnglishItalianoEspañolPortuguêsDeutschالعربيةFrançaisImportant DisclaimersThe content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your ...
Here's Why Robinhood Stock Is a Buy Before July 30
The Motley Fool· 2025-07-20 12:30
Core Viewpoint - Robinhood's stock has experienced a significant increase of over 350% in the past year, driven by rising stock and crypto prices, which have attracted retail investors back to its platform and boosted trading volumes [1] Group 1: Company Growth - Robinhood has rapidly expanded its customer base, more than doubling its funded customers from 2020 to 2024, with assets under custody (AUC) tripling during the same period [3][4] - The company achieved a compound annual growth rate (CAGR) of 32.5% in revenue despite a slowdown in 2022 due to rising interest rates [3] - As of Q1 2025, funded customers increased by 8% year over year to 25.8 million, and total platform assets surged 70% to $221 billion [4] Group 2: Regulatory Environment - The scrutiny from the SEC regarding Robinhood's payment for order flow (PFOF) model has lessened, as the proposed regulations against PFOF trades were withdrawn by the new SEC chairman, Paul Atkins [8][7] Group 3: Subscription Growth - Robinhood's premium Gold tier has seen a 90% year-over-year increase in subscribers, reaching 3.2 million, with subscription revenue rising 65% to $38 million [10][9] - Although subscription revenue only accounted for 4% of total revenue, it represents a potential diversification away from transaction-based revenues [10] Group 4: Ecosystem Expansion - The company has broadened its ecosystem to include more crypto trading, options trading, and card-based banking services, along with AI-powered portfolio management tools [11] - Recent additions include tokenized versions of U.S. Treasuries, stocks, and ETFs, as well as private startups like OpenAI and SpaceX, providing indirect exposure to these companies [12] Group 5: Margin Improvement - Robinhood's gross margin improved from 88% in 2020 to 94.4% in 2024, while adjusted EBITDA margin increased from 2.3% to 48.4% during the same period [13][14] - This improvement is attributed to reduced stock-based compensation expenses, growth in higher-margin subscription revenues, and a higher mix of revenues from crypto and options trades [14] Group 6: Valuation and Future Growth - Analysts project Robinhood's revenue to grow at a CAGR of 18% from 2024 to 2027, with adjusted EBITDA rising at a CAGR of 23% [15] - Despite an enterprise value of $91.3 billion, the stock may be considered reasonable relative to its growth potential, especially in the context of a favorable market environment [16]
Webull Corporation to Consolidate Crypto Entities
Prnewswire· 2025-07-17 13:00
Consolidation of Webull Pay Positions Webull Corp for Q3 Reintroduction of Crypto Trading on Webull Platform in the United StatesST. PETERSBURG, Fla., July 17, 2025 /PRNewswire/ -- Webull Corporation (NASDAQ: BULL), the owner of the Webull online investment platform, today announced that it will integrate Webull Pay LLC back into the Webull group. This important step advances Webull's plan to reintroduce crypto trading to its global customer base following its launch in Brazil last month. Additional market ...
Can Robinhood Markets (HOOD) Run Higher on Rising Earnings Estimates?
ZACKS· 2025-07-16 17:21
Investors might want to bet on Robinhood Markets, Inc. (HOOD) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.Analysts' growing optimism on the earnings prospects of this company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings es ...
Brokers Suggest Investing in Robinhood Markets (HOOD): Read This Before Placing a Bet
ZACKS· 2025-07-15 14:31
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Robinhood Markets, Inc. (HOOD) .Robinhood Markets currently has a ...
New Strong Buy Stocks for July 15th
ZACKS· 2025-07-15 10:56
Group 1 - Futu Holdings Limited (FUTU) has seen a 7.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Pan American Silver Corp. (PAAS) has experienced a 9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - RAPT Therapeutics, Inc. (RAPT) has seen a significant increase of 72.1% in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Hamilton Insurance Group, Ltd. (HG) has experienced an 18.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Invesco Ltd. (IVZ) has seen a 7.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]
Robinhood is up 160% this year, but several challenges are looming
CNBC· 2025-07-11 21:56
Robinhood stock hit an all-time high Friday as the financial services platform continued to rip higher this year, along with bitcoin and other crypto stocks.Robinhood, up more than 160% in 2025, hit an intraday high above $101 before pulling back and closing slightly lower.The reversal came after a Bloomberg report that JPMorgan plans to start charging fintechs for access to customer bank data, a move that could raise costs across the industry. For fintech firms that rely on thin margins to offer free or lo ...
Which Brokerage Stock Will Lead Tomorrow: Robinhood or Schwab?
ZACKS· 2025-07-11 15:20
Core Insights - The investing landscape is rapidly evolving, with Robinhood Markets (HOOD) and Charles Schwab (SCHW) leading the transformation aimed at retail investors [1][2] - The article compares the fundamentals, growth prospects, and strategic moves of both companies to determine which stock is better positioned for future success [2] Robinhood's Position - Robinhood gained popularity among younger investors during the meme stock phenomenon in early 2021 and has since diversified its offerings beyond digital assets [3] - The company has launched several initiatives to attract clients, including advanced trading tools, wealth management services, and a credit card for consumer finance [4] - Recent acquisitions, such as Bitstamp and TradePMR, aim to expand Robinhood's business and establish it as a global financial services provider [5] - However, the launch of stock tokens in the EU has attracted regulatory scrutiny, raising questions about transparency and legality [6] Schwab's Strengths - Schwab manages over $10 trillion in client assets and has a strong position in retail brokerage and advisor custody, benefiting from deep client relationships [7] - The company's diversified revenue streams, including net interest income and asset management fees, have been bolstered by rising interest rates [8] - Schwab's RIA custody business is one of the largest in the U.S., and the integration of TD Ameritrade has enhanced its ability to serve independent advisors [9] - The company is modernizing its platform to attract younger investors and plans to introduce spot Bitcoin and Ethereum trading by mid-2026 [11] Earnings Estimates - For Robinhood, the Zacks Consensus Estimate for 2025 earnings suggests a growth of 13.8%, while 2026 estimates imply a growth of 22.2% [13] - Schwab's earnings estimates for 2025 and 2026 indicate growth of 35.1% and 17.8%, respectively, reflecting strong analyst sentiment [16] Stock Performance and Valuation - Year-to-date, Robinhood's stock has surged by 164.9%, while Schwab has increased by 25.7%, both outperforming the industry and S&P 500 [19] - Robinhood trades at a price-to-tangible book (P/TB) ratio of 11.88X, while Schwab's P/TB ratio is 8.17X, indicating Schwab is relatively inexpensive [20] - Schwab's return on equity (ROE) stands at 18.31%, higher than Robinhood's 15.42%, showcasing Schwab's efficient use of shareholder funds [20] Strategic Outlook - Robinhood is focused on innovation and aggressive growth, appealing to investors looking for rapid transformation [22] - Schwab offers a balanced approach with a strong asset base, stable earnings, and strategic adaptability, making it a compelling long-term investment [26] - Currently, Schwab holds a Zacks Rank of 2 (Buy), while Robinhood has a Zacks Rank of 3 (Hold) [27]
Best Momentum Stock to Buy for July 11th
ZACKS· 2025-07-11 15:00
Group 1: Airbus Group - Airbus Group manufactures airplanes and military equipment, holding a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for its current year earnings increased by 0.6% over the last 60 days [1] - Shares gained 39.6% over the last three months, outperforming the S&P 500's gain of 17.1% [1] - The company possesses a Momentum Score of A [1] Group 2: Virtus Investment Partners - Virtus Investment Partners provides investment management products and services to individuals and institutions in the U.S., also holding a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings increased by 2.8% over the last 60 days [2] - Shares gained 35.5% over the last three months, again outperforming the S&P 500's gain of 17.1% [2] - The company possesses a Momentum Score of A [2] Group 3: Interactive Brokers - Interactive Brokers specializes in routing orders and executing trades in various financial instruments, holding a Zacks Rank 1 [3][4] - The Zacks Consensus Estimate for its current year earnings increased by 4.6% over the last 60 days [3] - Shares gained 37.8% over the last three months, surpassing the S&P 500's gain of 17.1% [4] - The company possesses a Momentum Score of B [4]
Robinhood Has Just Unlocked a Huge Growth Opportunity
The Motley Fool· 2025-07-11 11:15
Core Viewpoint - Robinhood Markets is expanding its offerings by introducing tokenized shares of both public and private companies, aiming to attract a broader customer base and enhance trading activity on its platform [2][6][10]. Group 1: Company Growth and Popularity - Robinhood has seen significant growth, with over 25 million funded accounts in 2024, up from 10 million five years ago [1]. - The company has increased its revenue from $1.8 billion in 2021 to just under $3 billion in the past year, indicating a strong financial performance [10]. Group 2: Tokenized Shares Offering - The introduction of tokenized shares allows users to buy and sell contracts that track the price of underlying assets on a blockchain, with minimal costs [4]. - Tokenized shares are currently available in Europe, providing users exposure to popular U.S. stocks, while U.S. regulations limit their availability domestically [4][9]. - Robinhood is also offering tokenized shares of private companies like OpenAI and SpaceX, which raises questions about price tracking and regulatory compliance [5][8]. Group 3: Market Potential and Future Outlook - The move to offer tokenized shares could significantly increase trading activity on Robinhood's platform, especially in Europe [4][6]. - The potential for tokenization in the U.S. is being recognized, with favorable comments from the SEC Chairman, suggesting future opportunities in the crypto space [9]. - Robinhood's stock has increased over 310% in the past 12 months, reflecting strong investor interest, although it is trading at more than 50 times earnings [11][12].