Core Insights - Robinhood Markets' shares surged 37% last month following its inclusion in the S&P 500, reflecting strong growth in customer deposits and trading volumes [1][3] - The stock's market capitalization exceeded $100 billion after the S&P 500 announcement, with shares increasing over 10 times since early 2023 [3][4] - The company is evolving into a comprehensive banking service, with 13% of customers subscribing to Robinhood Gold, up from 8% a year ago, contributing to revenue growth [5] Business Performance - Robinhood is experiencing significant growth, adding approximately $5 billion in monthly deposits, with total assets under custody reaching $300 billion by the end of August [4] - The company has captured a larger market share in stock trading, with revenue increasing over 1,000% since 2020, positioning it as one of the fastest-growing businesses globally [7] Valuation Concerns - Despite its rapid growth, Robinhood's stock trades at a market cap of $124 billion, with a price-to-earnings (P/E) ratio of 145, raising concerns about future returns for new investors [8] - The high valuation may pose challenges for generating positive forward returns for shareholders who purchase the stock at current levels [8][10]